Learn about the changes and adjustments taking place for the 2019 tax season, and help your clients file their returns. Download the full ebook here!
1 min read
2019 was the second tax year affected by the Tax Cuts and Jobs Act. Most regulations stayed the same as in 2018, but there are a few changes and adjustments to be aware of when helping your clients file their returns this tax season.
For tax year 2019, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The tax brackets adjusted for inflation are:
The tax rates for trusts and estates are: 10%, 24%, 35%, and 37%.
The standard deduction for single taxpayers and those married filing separately increased by $200 to $12,200. For taxpayers who are married filing jointly, the standard deduction increased by $400 to $24,400, and for heads of households the amount increased by $350 to $18,350.
While most deductions and credits remained the same for 2019, a few things have changed that will affect 2019 returns.
Lifetime Learning Credit
The adjusted gross income amount used to determine the Lifetime Learning Credit is $116,000—$2,000 higher than in 2018.
Foreign Earned Income Exclusion
The foreign earned income exclusion is up $2,000 from 2018 to $105,900 for the 2019 tax year.
Medical expenses
The “floor” for deducting medical and dental expenses increased to 10%, up from 7.5% in 2018.
The Saver’s Credit
The income limits for the Saver’s Credit have increased to $64,000 for those married filing jointly, $48,000 for heads of household, and $32,000 for single taxpayers and those married filing separately.
This post is an excerpt from our ebook 7 Things to Know for Tax Year 2019. You can download the whole thing here.
Explore more of our recent Articles, User Stories, and Ebooks.
2 min read
6 min read
Eva Rosenberg, MBA, EA, known as the Internet’s TaxMama®, publishes the popular TaxMama.com website, cited by Consumer Reports magazine as a top tax advice site, and a LIFE Magazine Editor’s Pick.
Canopy takes the headaches out of client management by offering a way to keep client info organized.
I love how easy it is to setup a new client in this software. Once set up, it's one click to get IRS transcripts downloaded for my review. This saves me at least an hour each week in comparison to the software I used to use.
This makes workflow for tax resolution manageable. This business is a bunch of hurry up and wait. This system helps to refresh my memory while transitioning to different clients.
The ability to securely share documents with clients as well as complete POAs from client contact data already in Canopy. The ability to route workflow between team members with color coded statuses allows us to work efficiently.
Cool features, outstanding customer service, constantly updating to make it better. I love that I can upload files easily to a secure client portal and we don't have to email files anymore. Absolutely can't imagine not having this software.
It's safe and secure. Clients are able to upload documents and the documents are saved their portal which as a result, keeps us better organized. The task feature keeps us organized and we know exactly the status of each client.
Submit this form, and we will be in touch soon to give you a custom demo.
Set a time for one of our product specialists to give you a guided tour practice.
Leave a comment!