TAX SEASON 2019
FREE TAX PREPARATION AND ELECTRONIC FILING
The New River Tax Center will open 28 January 2020 to prepare 2019 tax returns.
Operating hours are as follow: Tuesday, Wednesday, and Thursday 0800-1700.
- New River Tax Center is located in Bldg AS 216 Bancroft Street (on the east side of the Office of the Staff Judge Advocate and next to MAG-26 HQ).
- The Tax Centers will prepare Tax returns for the last three years.
- If you are deployed, you and your spouse have 180 days from the time you leave the deployment area to prepare your tax return.
Note: The deduction for all personnel exemption is suspended (reduced to zero), effective for tax year 2018 through 2025.
For 2019, the gross income limitation for a qualifying relative is $4,200.
For any divorce separate maintenance instrument executed after December 31, 2018, (executed on before December 31, 2018 and modified after that date if modification expressly provides that the amendment made by the Tax Cuts and Job Act, Section 11051, apply to such modification), alimony and separate maintenance payments are no longer deductible by the payor spouse. Additionally, alimony and separate maintenance payments are no longer included in income by the recipient of the payments.
The medical expense deduction threshold is 10% of adjusted gross income (AGI). The lower 7.5% AGI threshold has expired for itemized deductions.
Child Tax Credit refundable amount is limited to $1,400 per qualifying child.
Credit for other dependents is $500.00. This means that you may be able to claim this credit if you have children 17 or over, including college students, children with Individual Taxpayer Identification Numbers (ITINs) or other relatives in your household.
Intake/Interview & Quality Review Sheet (Form 13614-C)
W2 (wages or salaries from all employment during the year
Interest from checking or saving account, bonds, CD, or brokerage account
State tax refund (if itemized)
Alimony Income (for divorce before 2019)
Pension and/or IRA distribution (1099 -R)
Unemployment Income (1099-G)
Other Income such as gambling winnings, awards, prizes and jury duty
Education expenses (1098-T)
Home mortgage interest (1098)
Real estate tax/Personal Property Tax
Child/dependent care expense (Child care provide Id or SSN)
Estimated Tax payments
Bank account information to electronically file tax return (voided check or deposit slip)
Power of Attorney if filing a joint return
Social Security card/ITN numbers for all dependents claimed on tax return
All rental property information if claiming rental income (Maximum of 3 rental property)
Any information you think will help properly prepare your tax return
2019 Earned Income Tax Credit Information
To be eligible for a full or partial credit, the taxpayer must have earned income of at least $1 but less than:
- $50,162 ($55,952 married filing jointly) with three or more qualifying children
- $46,703 ($52,493 married filing jointly) with two qualifying children
- $41,094 ($46,884 married filing jointly) with one qualifying child
- $15,570 ($21,370 married filing jointly) with no qualifying child
Tax Year 2019 maximum credit:
- $6,557 with three or more qualifying children
- $5,828 with two qualifying children
- $3,526 with one qualifying child
- $529 with no qualifying child
- Married Filing Separate cannot take EITC.
Investment income must be $3,600 or less for the year.
The amount a taxpayer can deduct for each exemption is $0.
Married Filing Joint $24,400
Married Filing Separately $12,200
Head of House Hold $18,350
Qualifying Widow $24,400
Taxpayers who are 65 and older or are blind
Married Filing Joint $1,300 ($2,600 if both qualify)
Married Filing Separately $1,650
Qualifying Widow(er) $1,350
Single or Head of Household $1,650
In order to itemized deductions, your amounts must be above the standard rates listed above.
Personal Exemption Amounts
The personal exemption amount is $4,050. Phase out at AGI of $155,650 - $311,300 depending on filing status
Standard Mileage Rate
- 58 cents per mile for business miles driven.
- 20 cents per mile driven for medical or moving purposes.
- 14 cents per mile driven in service of charitable organizations
Definition of a Qualifying Child
Provides that a qualifying child for purpose of the child tax credit, head of household, earned income credit, dependency exemption, and credit for child and dependent care expenses must be all of the following:
- Relation test. The child must be your child (including adopted stepchild, or eligible foster child), sibling, step sibling, or a descendant of one of these relatives. An eligible foster child is one that is placed in your home by an authorized placement agency or by judgment, decree or other court order.
- Residency test. The child must live with you for more than half of the year.
- Support. The child cannot have provided over half of his or her own support during the year. Exception. For purposes of the EIC only, the support does not apply.
- Age Test. The child must be under a certain age (depending on the tax benefit) to be your qualifying child.
- Exemption, EITC and Head of Household status a child must be under 19 or a full-time student under 24 or any age if permanently and totally disabled.
- Child tax credit a child must be under 17.
- Child and dependent care credit a child must be under 13 or any age if permanently and totally disabled.
- *The qualifying child must be younger than the individual claiming the child.
- Qualified Relative Rules
- Member of Household or relationship.
- Gross income
- Joint Return
A qualifying child of a person cannot be a qualifying relative of someone else. However, a child can be a qualifying relative if the parent doesn’t have filing requirement or only files to get the federal tax withheld back.
Head of Household
- To claim Head of Household status, taxpayer must be unmarried or legally separated and maintain either:
- The main home of the taxpayer’s parent, who can be claimed as a dependent.
- A home in which the taxpayer resides for more than half the year with a :
- Qualifying child or
- As a result of the 2004 tax legislation, there are some taxpayers who will not qualify for Head of Household filing status. They will be forced to file as single.
- If you now contribute a car, boat or airplane to a qualified organization and you are claiming more than a $500 deduction you are required to receive a Form 1098C. If you do not get the form within 30 days of the vehicle being sold or within 30 days from the date of the contribution if the vehicle is to be materially improved or sold below fair market value to needy individual.
- You cannot deduct cash contribution regardless of the amount unless you have a cancelled check or written confirmation from the charity with their name, date and amount contributed.
- Non-cash contributions must be in good condition, all non-cash items that are valued at more than $500 must be appraised by a qualified appraiser.
Deductible Long-Term Care Premium
The maximum amount of qualified long-term care premiums includable as medical expenses has increased. Qualified long-term care premiums up to the amounts shown below can be included as medical expenses on Schedule A (Form 1040) itemized Deductions.
- $420: age 40 or under
- $790: age 41 to 50
- $1,580: age 51 to 60
- $4,220: age 61 to 70
- $5,270: age 71 and older
American Opportunity Credit for 2019 is gradually reduced (phased out) if taxpayer’s MAGI is between $80,000 and $90,000 ($160,000 and $180,000 if married filing jointly). Taxpayers cannot claim a credit if their MAGI is $90,000 or more ($180,000 or more if Married Filing jointly). There is no change.
To claim the American opportunity, taxpayers must provide the educational institution’s employer identification number (EIN) of Form 8863. Taxpayers should be able obtain this information from Form 1098-T or the education institution.
Lifetime Learning Credit for 2019 is gradually reduced (phased out) if taxpayers’ MAGI is between $58,000 and $68,000 ($116,000 and $136,000 if married filing jointly). Taxpayers cannot claim a credit if their MAGI is $68,000 or more ($136,000 or more if married filing jointly).
Student loan interest deduction begins to phase out for taxpayers with MAGI in excess of $70,000 ($140,000 for joint returns) and is completely phased out for taxpayers with MAGI of $85,000 or more ($170,000 or more for joint returns).
Foreign Earned Income Exclusion
For 2019, the maximum foreign earned income exclusion will be $105,900, up from $101,300 for 2016.
Deduction Amount and Modified Limit for Traditional IRA Contributions Increased
For 2019, the maximum IRA deduction remains at $6,000 ($7,000 if age 50 or older). For taxpayers who are covered by a retirement plan at work, the deduction for contributions to a traditional IRA is reduced (phased out) if the modified AGI is:
- More than $103,000 but less than $123,000 for married couple filing a joint return or a qualifying widow(er) if both spouses are covered by a retirement plan,
- More than $64,000 but less than $74,000 for a single individual or head of household, or
- Less than $10,000 for a married individual filing a separate return
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $193,000 and $203,000.
As of January 1, 2014, the state of North Carolina will no longer allow any exclusion for retirement income. This includes all retirement (public or private) that does not qualify under the Bailey Settlement.
Social Security Cards
The Social Security Administration will no longer issue Social Security Number verification printouts. Taxpayers who have lost or misplaced their social security card will need to apply for a replacement via mail or in person at the local SSA field office. This process will take 7 – 10 business days. You will need to wait for your card in the mail before arriving at the Base Tax Center. The nearest Social Security Office is located in New Bern, NC. Please visit www.ssa.gov or call 1.888.491.1885 for business hours and directions. Your child must have a Social Security Number issued the Social Security Administration before the due date of your tax return (including extensions) to be claimed as a qualifying child for tax credit.
The due date for filing a 2017 tax return was Tuesday, April 17, 2018
Retirement Savings Contribution Credit Income Limits Increased
To claim this credit, the taxpayer’s modified adjusted gross income (MAGI) must not be more than $32,000 for Single, Married Filing Separately, or Qualifying Widower (Increase of $500). MAGI must not be more than $48,000 (increase of $750) for head of Household, and $64,000 (increase of $1,000) for Married Filing Jointly.