2019 Tax Rates

           The tax rates will change again for 2019 getting somewhat wider. You remember all the talk about having almost a flat tax. Forget it. There are seven tax brackets for each of the various individual tax statuses. There are a couple of notable changes. The new and improved anti blue state standard deduction will rise to $12,200 for single taxpayers and $24,400 for married couples. For tax years 2017 and 2018 medical expenses were deductible which exceeded 7.5% of the taxpayer’s adjusted gross income. Starting in 2019 the uninsured medical deduction will only be allowed to the extent that it exceeds 10% of AGI. The Social Security annual wage base will jump to $132,900. The lifetime estate and gift tax exemption will increase to $11,400,000 for single taxpayers and twice that amount for couples if portability is elected. The annual gift tax exclusion will increase to $15,000 per donee. The federal tax law provides a special rule for the exclusion of gain on the sale of a principal residence. If you have owned your residence for at least two of the five years ending on the date of sale a single taxpayer can exclude $250,000 of gain and a married taxpayer $500,000. However, recognizing perhaps that we baby boomers are getting older, if a taxpayer is moving to a nursing home, the use requirement is reduced to one out of five years preceding the date of sale.