CPA Michelle Staebell discussed some of the tax code changes that could impact your upcoming 2019 income tax return Monday during News 8 at Sunrise.
Staebell focused on two specific areas – deductions and contributions.
“If a taxpayer itemizes their deductions, they might add up their medical and expect to be able to deduct that,” said Staebell. “Well, the floor for deducting medical expenses has risen from 7.5% to 10% of adjusted gross income. So it’s going to be even harder for taxpayers to take that deduction for medical expenses.”
Those who pay or receive alimony are in for a big change. “For divorces that happen in 2018, nothing’s changed,” Staebell said. “If people pay alimony, they’re still able to deduct it. But if your divorce happened in 2019 or later, or was restructured in 2019, the taxpayer paying alimony can no longer deduct that on their tax return. And the recipient doesn’t have to pick it up as income. So big changes for divorces happening in 2019.”