Page 7 - Supplement to Income Tax 2019

Contents

Recent Tax Developments —Schedule A 25
Unsettled Tax Matters 3 —Schedule B 26
IRS Provides Limited Waiver of Underpayment —Schedule C 27
Penalty for 2018 4 —Schedule D 29
IRS Mileage Rates for 2019 4 —Schedule E 31
Safe Harbor for Real Estate Activities —Schedule SE 33
under the QBI Deduction 5
—Schedule EIC 35
Social Security & Medicare Taxes on 2019 Wages
& Self-Employment Earnings 5 —Schedule 8812 37
Medicare Part B and Part D Premiums for 2019 6 2018 Child Tax Credit and Credit for Other
Dependents Worksheet 38
2019 Medicare Part B Premiums and Part D Premium
Surcharges Based on 2017 MAGI and Filing Status 7 Qualified Dividends and Capital Gain
Estimating Your 2019 Taxes Tax Worksheet 40
Retirement Plan Cost-of-Living Adjustments for 2019 8 Form 4684 41
Non-Retirement Cost-of-Living Adjustments for 2019 9 Form 8949 45
2019 Tax Rate Tables 12 Form 8959 47
Additions & Corrections to the Text of Your Income Tax 2019 13 Form 8960 48
Forms, Tables, Worksheets 16 Form 8962 49
Form 1040 17 Form 8965 51
—Schedule 1 19 2018 Tax Table 52
—Schedule 2 20 2018 Tax Computation Worksheet 64
—Schedule 3 21 2018 Earned Income Credit (EIC) Table 65
—Schedule 4 22 2018 Optional State Sales Tax Tables 74
—Schedule 5 23 2018 Bond Tables—Series EE 79
—Schedule 6 24 2018 Bond Tables—Series I 87

Recent Tax Developments*
(Page references in the headings of the articles are to the text of J.K. Lasser’s Your Income Tax 2019.)

Unsettled Tax Matters

The Tax Cuts and Jobs Act (TCJA) of 2017 came late in to a principal residence, and several empowerment zone
2017, but there was no last-minute tax legislation at the end incentives. In certain prior years, extender legislation was
of 2018. Nonetheless, a number of tax measures have been enacted during the tax-filing season, so it’s still possible that
anticipated, and it is still possible that Congress could enact such legislation can be enacted retroactively and be effective
provisions that impact 2018 returns as well as tax planning for 2018 returns.
for 2019. Check jklasser.com for any update on legislation.
Technical corrections. The TCJA has a number of issues
Extender legislation. A number of tax rules expired at the that need technical corrections legislation to fix. For
end of 2017 and as yet have not been extended to 2018. example, Congress intended to provide a 15-year recovery
These include the above-the-line deduction for tuition period for qualified improvement property, but this was
and fees, the itemized deduction for mortgage insurance not included in the language of the TCJA. As a result,
premiums, the exclusion for income from the discharge until there is a technical correction, the recovery period for
of indebtedness on a principal residence, the tax credit for qualified improvement property is 39 years, and it is not
adding insulation and certain other energy improvements eligible for bonus depreciation.

*This Supplement to J.K. Lasser’s Your Income Tax reflects tax developments as of February 11, 2019. Please revisit us at jklasser.com for further updates.

Supplement to J.K. Lasser’s Your Income Tax 2019 | 3