Know before you file: 4 changes to 2019 taxes 


The Internal Revenue Service adjusted several tax provisions for 2019, including some that could impact how you file and choose to save for retirement.

Here are the facts you should know before you file your 2019 taxes. 

1. Taxable income bracket amounts have increased 

The income limits for each tax bracket have increased for 2019. The tax rates are unchanged from 2018 and range from 10% to 37%, depending on your taxable income and filing status. 

The tax brackets for 2019 are:

Single Filers

Tax rate Taxable income bracket Tax owed
10% Up to $9,700 10% of taxable income
12% $9,701 to $39,475 $970 plus 12% of the amount over $9,700
22% $39,476 to $84,200 $4,543 plus 22% of the amount over $39,475
24% $84,201 to $160,725 $14,382.50 plus 24% of the amount over $84,200
32% $160,726 to $204,100 $32,748.50 plus 32% of the amount over $160,725
35% $204,101 to $510,300 $46,628.50 plus 35% of the amount over $204,100
37% Over $510,301  $153,798.50 plus 37% of the amount over $510,300

Source: Internal Revenue Service

Married, Filing Jointly

Tax rate Taxable income bracket Tax owed
10% Up to $19,400 10% of taxable income
12% $19,400 to $78,950 $1,940 plus 12% of the amount over $19,400
22% $78,951 to $168,400 $9,086 plus 22% of the amount over $78,950
24% $168,401 to $321,450 $28,765 plus 24% of the amount over $168,400
32% $321,451 to $408,200 $65,497 plus 32% of the amount over $321,450
35% $408,201 to $612,350 $92,257 plus 35% of the amount over $408,200
37% Over $612,351  $164,709.50 plus 37% of the amount over $612,350

Source: Internal Revenue Service

Head of Household

Tax rate Taxable income bracket Tax owed
10% Up to $13,850 10% of taxable income
12% $13,851 to $52,850 $1,385 plus 12% of the amount over $13,850
22% $52,851 to $84,200 $6,065 plus 22% of the amount over $52,850
24% $84,201 to $160,700 $12,962 plus 24% of the amount over $84,200
32% $160,701 to $204,100 $31,322 plus 32% of the amount over $160,700
35% $204,101 to $510,300 $45,210 plus 35% of the amount over $204,100
37% Over $510,301  $153,780 plus 37% of the amount over $510,300

Source: Internal Revenue Service

Married, Filing Separately

Tax rate Taxable income bracket Tax owed
10% Up to $9,700 10% of taxable income
12% $9,701 to $39,475 $970 plus 12% of the amount over $9,700
22% $39,476 to $84,200 $4,543 plus 22% of the amount over $39,475
24% $84,201 to $160,725 $14,382.50 plus 24% of the amount over $84,200
32% $160,726 to $204,100 $32,748.50 plus 32% of the amount over $160,725
35% $204,101 to $306,175 $46,628.50 plus 35% of the amount over $204,100
37% Over $306,176  $82,354.75 plus 37% of the amount over $306,175

Source: Internal Revenue Service

2. The standard deduction increased

Depending on your situation, you may choose to take the standard deduction over the option to itemize. The standard deductions for 2019 are:

3. Retirement account contribution limits have increased

Contribution limitations on common retirement plan accounts have increased modestly for 2019, including: 

401(k), 403(b) and most 457 plans

  • Taxpayers younger than age 50 can contribute up to $19,000 to their workplace retirement account in 2019, an increase from $18,500 in 2018. 
  • The additional catch-up contribution for those who are age 50 or older is unchanged at $6,000. 

Individual retirement accounts (IRA)

  • Contribution limits to IRAs increased to $6,000, up from the $5,500 limit in 2018. 
  • The catch-up contribution remains the same at $1,000.

SIMPLE IRA plans

  • Those with SIMPLE IRA plans can contribute up to $13,000 for 2019, up from $12,500 in 2018. 
  • Catch-up contributions are unchanged at $3,000 for those age 50 and older.

4. Some itemized deductions and credits have changed

The following common deductions and credits have changed:

  • Medical and dental expenses must exceed 10% of your adjusted gross income to be deductible, up from 7.5% in 2018.
  • Adoption credit for qualified expenses is $14,080, up from $13,810 in 2018.

Talk with your advisor about year-end planning

Your financial advisor can collaborate with your tax advisor to factor the impact of taxes into your financial picture. If you are looking to work with a tax or legal professional, your advisor may be able to refer you to one.