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Additional Medicare Tax
High-Income Increased Medicare Tax on Earned Income
Taxpayers The employee portion of the hospital insurance (Medi-
care) tax is increased by an additional tax of 0.9% on wag-
es received in excess of the threshold amount. However,
Roth IRA Phaseouts unlike the general 1.45% hospital insurance (Medicare)
2019 2018 tax on wages, this additional tax is on the combined wag-
MFJ or QW .......................$ 193,000 to $ 203,000 .........$ 189,000 to $ 199,000 es of the employee and the employee’s spouse, in the
Single, HOH, or MFS* ........$ 122,000 to $ 137,000 .........$ 120,000 to $ 135,000 case of a joint return.
MFS ........................................... $ 0 to $ 10,000 .................. $ 0 to $ 10,000
* MFS and did not live with spouse during the year. Medicare Tax on Unearned Income
Individuals. The tax is 3.8% of the lesser of net invest-
Retirement Savings Contribution Credit ment income or the excess of modified adjusted gross
(Saver’s Credit) income over the threshold amount.

Threshold Amount
2019 Retirement Savings Contribution Credit Percentage
Joint return or surviving spouse ............................................... $250,000
Rate MFJ HOH Single, QW, MFS Married individual filing separately .......................................... $125,000
50% $ 0 – $ 38,500 $ 0 – $ 28,875 $ 0 – $ 19,250 All other tax filers ..................................................................... $200,000
20% $ 38,501 – $ 41,500 $ 28,876 – $ 31,125 $ 19,251 – $ 20,750
10% $ 41,501 – $ 64,000 $ 31,126 – $ 48,000 $ 20,751 – $ 32,000 Education Benefits
0% Over $ 64,000 Over $ 48,000 Over $ 32,000
2019 Education Benefits Comparison Chart
Up to a maximum credit of $1,000.
Benefit Annual Limit Modified AGI Phaseout
American 40% of the credit $2,500 $ 80,000 – $ 90,000
Child Tax Credit Opportunity / may be refundable credit per $ 160,000 – $ 180,000
Hope Credit (limited to $1,000). student. (MFJ)
AGI phaseout. The credit (up to $2,000 per qualifying Lifetime Tax credit (non­ $2,000 $ 58,000 – $ 68,000
child) is reduced by $50 for each $1,000 of modified AGI Learning Credit refundable). credit per tax $ 116,000 – $ 136,000
above: return. (MFJ)
• $400,000 Married Filing Jointly. Coverdell Tax­free earnings. $2,000 $ 95,000 – $ 110,000
• $200,000 Single, Head of Household, Qualifying Education contribution $ 190,000 – $ 220,000
per
(MFJ)
Savings
Widow(er), or Married Filing Separately. Account (ESA) beneficiary.
U.S. Savings Tax­free interest. Amount of $ 81,100 – $ 96,100
qualified
Credit for Other Dependents Bond Interest education $ 121,600 – $ 151,600
(MFJ)
Exclusion
expenses.
A nonrefundable credit of up to $500 is allowed for de- Student Above­the­line tax $2,500 $ 70,000 – $ 85,000
pendents other than a qualifying child for the Child Tax Loan Interest deduction. deduction. $ 140,000 – $ 170,000
Credit. Deduction (MFJ)
Adoption Expenses
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2019 maximum credit .................................................................$ 14,080 There are many events that occur during the year that can affect
2019 maximum exclusion ............................................................$ 14,080 your tax situation. Preparation of your tax return involves sum-
AGI phaseout ......................................................... $ 211,160 – $ 251,160 marizing transactions and events that occurred during the prior
Unused credit carryforward ....................................................... 5 years year. In most situations, treatment is firmly established at the
time the transaction occurs. However, negative tax effects can
be avoided by proper planning. Please contact us in advance
if you have questions about the tax effects of a transaction or
event, including the following:
• Pension or IRA distributions. • Retirement.
• Significant change in income or • Notice from IRS or other
deductions. revenue department.
• Job change. • Divorce or separation.
This brochure contains general information for taxpayers and • Marriage. • Self-employment.
should not be relied upon as the only source of authority. • Attainment of age 59½ or 70½. • Charitable contributions
Taxpayers should seek professional tax advice for more information. • Sale or purchase of a business. of property in excess of
• Sale or purchase of a residence $5,000.
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