Page 15 - Supplement to Income Tax 2019

Estimating Your 2019 Taxes

American Opportunity credit and Lifetime Learning credit Gift tax annual exclusion and lifetime exemption from gift
(pages 605–609). The credit amount and phaseout range tax and estate tax (pages 668-673). The annual exclusion
for the American Opportunity credit are not subject to cost- for gifts made in 2019 is $15,000 per individual donee
of-living changes. By statute, the credit of up to $2,500 per (unchanged from 2018). Married couples can agree to
eligible student phases out over a MAGI range of $80,000 to “split” one spouse’s gifts, doubling the 2019 exclusion for
$90,000 for single filers, heads of households, and qualifying each donee to $30,000. The unlimited marital deduction
widows/widowers, and $160,000 to $180,000 for joint filers. applies to gifts made to a spouse who is a U.S. citizen.
The Lifetime Learning credit (limited to $2,000 for all For gifts to a noncitizen spouse, the annual exclusion for
eligible students claimed by a taxpayer) phases out for 2019 2019 is $155,000.
over a MAGI range of $58,000 to $68,000 for single filers, The “lifetime” exclusion (exemption) from gift tax that
heads of households, and qualifying widows and widowers, applies to taxable gifts in excess of the annual exclusion and
and $116,000 to $136,000 for joint filers. Married persons other tax-free gifts is the same as the basic exemption for
filing separately may not claim either credit. estate tax purposes. For 2019, the exemption amount is
$11.4 million (up from $11.18 million in 2018).
Transportation fringe benefits (pages 66–68). The 2019
monthly tax-free limit for employer-provided transit passes Attorney fee awards (pages 791–792). The limit on
and commuter van/bus transportation (paid by employer or attorney fee awards for taxpayers who substantially prevail
by employee salary-reduction contributions), as well as the against the IRS is generally $200 per hour for fees incurred
monthly exclusion for parking benefits, is $265 per month. in 2019; a court may increase the $200 limit in special cases.

Supplement to J.K. Lasser’s Your Income Tax 2019 | 11