IRS Tax Reform Tax Tip 2019-140, October 8, 2019
Taxpayers who filed an extension can find resources on IRS.gov that can help them file their tax return. One of these resources is Publication 5307, Tax Reform Basics for Individuals and Families (PDF). This publication is now available in several different languages.
This publication has info to help individual taxpayers understand the tax reform law. It gives tips about actions they may need to take to comply with federal tax return filing requirements.
The pub can be especially helpful for extension filers who haven't filed their tax returns and those who were otherwise unable to file their return by the deadline. Taxpayers who haven't filed over the summer can file their tax returns whenever they are ready. They do not need to wait until the October 15 extension deadline to file.
This online publication is available on IRS.gov in these languages.
- Chinese – Traditional (PDF)
- Chinese – Simplified (PDF)
- Spanish – Mainland (PDF)
- Spanish – Puerto Rico (PDF)
- Korean (PDF)
- Vietnamese (PDF)
- Russian (PDF)
Here are some of the key changes affecting tax returns covered in all versions of the publication:
- New tax rates. There are now seven income tax brackets, ranging from 10% to 37%.
- The standard deduction nearly doubled. The basic standard deduction is now:
- $12,000 for singles and married people filing separate returns.
- $18,000 for heads of household.
- $24,000 for married couples filing a joint tax return.
- Some deductions are limited or discontinued. Here are a couple examples:
- The state and local tax deduction is limited to $10,000, or $5,000 if married and filing a separate return.
- New limits apply to mortgage interest.
- The miscellaneous itemized deduction for job-related costs and certain other expenses is no longer available.
- Changes to the child tax credit. This credit increased, so more people now qualify. The maximum credit is now $2,000 for each qualifying child under age 17. In addition, the income limit for getting the full credit is $400,000 for joint filers and $200,000 for other taxpayers.
- New credit for other dependents. A $500 credit is available for each dependent who does not qualify for the child tax credit. This includes older children and qualifying relatives, such as a parent.
- Personal and dependency exemptions suspended. This means that an exemption can no longer be claimed for a tax filer, spouse and dependents
The publication gives taxpayers detailed information about performing a Paycheck Checkup using the Tax Withholding Estimator. The pub also tells people how to update Form W-4, Employee's Withholding Allowance Certificate, with their employer after doing a Paycheck Checkup.