• 2019 Social Security wage base is $132,900 (increases to $137,700 in 2020)
• There is no earnings limit for the Medicare tax.
• You may owe an additional 0.9% Medicare tax if your earnings exceed a threshold (see below).
• Self-employed:
  • 2019 self-employment tax rate is 15.3%, which equals the Social Security rate of 12.4% plus the Medicare tax rate of 2.9%.
  • The 15.3% rate applies to earnings up to $132,900 after the earnings are reduced by 7.65% on Schedule SE.
  • The 2.9% Medicare rate applies to gross earnings from the first dollar. There is no earnings limit for the Medicare tax.
• Additional 0.9% Medicare Tax:
• High income taxpayers whose income exceeds a threshold amount are subject to an additional 0.9% Medicare Tax. Your filing status determines the threshold amount. If you're married and file a joint return, you must combine your and your spouse's wages, other compensation (i.e. tips, taxable fringe benefits, etc.) and self-employment income to determines if the threshold is exceeded.
• If you had only self-employment earnings in 2019, and not wages, you figure your liability for the 0.9% tax on Part II of Form 8959.
• If you had wages and net earnings from self-employment in 2019:
  • first determine if the 0.9% tax applies to your wages in Part I of Form 8959
  • then reduce your threshold amount by your wages to get a reduced threshold amount that is used to determine if the tax applies to the self-employment income.
• A net loss from self-employment does not offset wages.
• The 50% deduction for self-employment tax does not apply to the 0.9% Additional Medicare Tax.

Threshold Amounts for the Additional 0.9% Medicare tax

Filing Status	Threshold
Married filing jointly	$250,000
Married filing separately	$125,000
Single	$200,000
Head of household	$200,000

• Fifty percent (50%) of the self-employment tax is deductible on Form 1040 as an above-the-line deduction, which reduces adjusted gross income (AGI). Enter this deduction on Schedule 1 of Form 1040, line 14.
• Employer/Employee:
  • 2019 Total Social Security Rate: 12.4%
    • Employer share: 6.2% (maximum amount, $8,239.80)
    • Employee share: 6.2% (maximum amount, $8,239.80)
  • 2019 Total Medicare tax rate: 2.9%
    • Employer: 1.45%
    • Employee: 1.45%
    • Additional 0.9% Medicare tax:
      • See the chart above for threshold amounts to see if this additional tax applies to you.

You can no longer claim a personal exemption for yourself, your spouse or your dependents.

• Married filing Joint return: $24,400
• Qualifying widow/widower: $24,400
• Head of household: $18,350
• Single: $12,200
• Married filing separately: $12,200
• Dependents - minimum deduction: $1,100
• Additional Deduction if Age 65 or Older, or Blind. If you turned 65 on January 1, 2020, you are considered to be 65 as of December 31, 2019 for purposes of claiming this deduction. The larger deduction for blindness is allowed regardless of age.
  • Married-per-spouse, filing jointly or separately:
    • $1,300 ($2,600 for age and blindness)
  • Qualifying widow/widower:
    • $1,300 ($2,600 for age and blindness)
  • Single or head of household:
    • $1,650 ($3,300 for age and blindness)

Collectibles gain-maximum rate: 28%

Unrecaptured Section 1250 gain on depreciated real estate-maximum rate: 25%

• Business: 58 cents per mile
  • For 2020 the rate is: 57.5, down 1/2 cent.
• Medical and moving: 20 cents per mile:
  • This deduction is only applies to members of the U.S. Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station.
  • For 2020 this rate is: 17 cents per mile, down 3 cents.
• Charitable volunteers: 14 cents per mile (for 2020 the rate remains unchanged)

• Free parking, transit passes, and van pooling: $265 per month

Traditional IRAs:

• Traditional IRA contribution limit: $6,000
• Additional contribution if age 50 or older but under 70 1/2: $1,000
• Deduction phaseout for active plan participant:
  • Single or head of household: $64,000 - $74,000
  • Married filing jointly, two participants: $103,000 - $123,000
  • Married filing jointly, one participant:
    • Participant spouse: $103,000 - $123,000
    • Non-participant spouse: $193,000 - $203,000
    • Married filing separately, live together, either participates:
      • $0 - $10,000
  • Married filing separately, live apart all year:
    • Participant spouse: $64,000 - $74,000
    • Non-participant spouse: no phaseout

Roth IRAs:

• Roth IRA contribution limit: $6,000
• Additional contribution if age 50 or older: $1,000
• Roth IRA Contribution limit phaseout range:
  • Single, head of household: $122,000 - $137,000
  • Married filing separately, live apart all year: $122,000 - $137,000
  • Married filing jointly, or qualifying widow/widower: $193,000 - $203,000
  • Married filing separately, live together at any time: $0 - $10,000

• 401(k), 403(b), 457 plans: $19,000
• Salary-reduction SEP: $19,000
• SIMPLE IRA: $13,000
• Additional contribution if age 50 or older (catch-up contributions):
  • 401(k), 403(b), governmental 457 and SEP plans: $6,000
  • SIMPLE IRA: $3,000

• American Opportunity credit limit-per student: $2,500
• Lifetime Learning credit limit-per-taxpayer: $2,000
• Phaseout of American Opportunity credit:
  • Married filing jointly: $160,000 - $180,000
  • Single, head of household, or qualifying widow/widower: $80,000 - $90,000
• Phaseout of Lifetime Learning credit:
  • Married filing jointly: $116,000 - $136,000
  • Single, head of household, qualifying widow/widower: $58,000 - $68,000
• Student loan interest deduction limit: $2,500
  • Phaseout of deduction limit:
    • Married filing jointly: $140,000 - $170,000
    • Single, head of household, qualifying widow/widower: $70,000-$85,000
• Coverdell ESA limit: $2,000
  • Phaseout of limit:
    • Married filing jointly: $190,000 - $220,000
    • All others: $95,000 - $110,000
• Tuition and Fees Deduction has expired and isn't allowable for the 2019 tax year. You can still claim this deduction on your 2017 returns if you're filing them again.
• These deductions have expired for tax years beginning after December 31, 2017. However, they are listed in the event further legislation is passed to extend them.
  • Tuition and fees deduction: tier 1 limit Income cut-off $4,000
    • Married filing jointly: $130,000
    • Single, head of household, or qualifying widow/widower: $65,000
  • Tuition and fees deduction: tier 2 limit Income cut-off: $2,000
    • Married filing jointly: $160,000
    • Single, head of household, or qualifying widow/widower: $80,000

• Limit on premium allowed as medical expense
  • Age 40 or under: $420
  • Over 40 but not over 50: $790
  • Over 50 but not over 60: $1,580
  • Over 60 but not over 70: $4,220
  • Over 70: $5,270

For qualifying property placed in service in 2019, first-year expensing is allowed up to a limit of $1,020,000. The limit begins to phase out if the total cost of qualifying property exceeds $2,550,000.

Section 179 Deduction Phase-out:

If the cost of qualifying property placed in service in 2019 is more than $2,550,000, you reduce the $1,020,000 expensing limit dollar-for-dollar for each dollar the cost of qualifying property exceeds $2,550,000 (but not below zero).

For example, if you place machinery in service during 2019 costing $2,600,000, the $1,020,000 deduction limit is reduced by $50,000 to $970,000, which is entered on Form 4562, Line 5 of Part 1 (labeled "Dollar limitation for tax year.")

If the cost of the property was $3,570,000 or more, no first-year expensing deduction is allowed for 2019 because it would be completely phased out.

2019 Bonus Depreciation (Section 168(k):

The Tax Cuts and Jobs Act increased the bonus depreciation percentage from 50 percent to 100 percent for qualified property acquired and placed in service after September 27, 2017, and before January 1, 2023.

This law change:

• Generally, applies to depreciable business assets with a recovery period of 20 years or less and certain other property. Machinery, equipment, computers, appliances and furniture generally qualify.
• Adds film, television, live theatrical productions, and some used qualified property as types of property that may be eligible.

Taxpayers may elect out of the additional first-year depreciation.