The IRS has extended certain individual tax provisions for 2019. Our NYC CPA office can help you understand how they impact your tax return filing. In summary tax payers can claim:

  • Deductions for above-the-line qualified tuition and related expenses
  • Deductions for mortgage insurance premiums treated as qualified residence interest.
  • Deduction for unreimbursed medical and dental expenses as the floor was lowered to 7.5% of adjusted gross income.
  • Credit for nonbusiness energy property improvements.
  • Income exclusion for canceled debt for qualified principal residence indebtedness where the taxpayer defaulted on a mortgage that they took out to buy, build or substantially improve their main home.

There is also a Kiddie Tax modification: The “Kiddie Tax” applies to certain children who may be able to calculate their tax based on the tax rate of the child’s parent. For tax year 2019, taxpayers can elect this alternative application for the tax on their unearned income. Taxpayers who make this election for 2019 must include a statement with their return specifying “election to modify tax of unearned income.”

Disaster tax relief was also enacted for those affected by certain Federally declared disasters. This includes an increased standard deduction based on qualified disaster losses and an election to use 2018 earned income to figure the 2019 earned income credit and additional child tax credit.

Certain taxpayers affected by federally declared disasters may be eligible for an automatic 60-Day extension for filing, paying their taxes, and other administrative deadlines. Special rules may apply for taxpayers who received a distribution from an individual retirement arrangement, profit-sharing plan or retirement plan and their main home was in one of the federally declared disaster areas eligible for these special rules.

If you have questions about these or other 2019 tax filing issues, please contact our NYC CPA office.