New 2019 Tax Laws What Every Taxpayer Needs to Know Now !
Are you ready for 2020 Tax Season !
January 2, 2019
It's been almost a year since the Tax Cuts and Jobs Act (TCJA) brought sweeping changes to the American tax system. Since there have been just a few headlines coming out of Washington, DC, since the TCJA was signed, we offer a reminder of changes affecting your tax returns for the 2018 tax year (filed in April 2019) and the 2019 tax year (filed in April 2020).
Tax Brackets – Under the TCJA, there are seven tax brackets for the 2018 tax year, ranging from 10% for taxpayers with incomes below $9,526 ($19,050 for married couples filing jointly) to 37% with incomes above $500,000 ($600,300 for married filing jointly).
For the 2019 tax year, the number of brackets will stay the same – but beginning in 2019, the bracket boundaries will be indexed to inflation based on the Chained Consumer Price index (C-CPI). The brackets will adjust upward by nearly 2%.
Capital gains tax brackets are 0%, 15%, or 20% for the 2018 tax year, with boundaries at $38,600 for single filers ($77,200 joint filers), and $425,800 single ($479,000 joint). As with ordinary tax brackets, capital gains brackets will be indexed for inflation in 2019.
