December 17, 2018

IRS Releases Transit, Other Tax-Related Amounts for 2019

  • Inflation adjustments for several tax provisions for use on 2019 tax returns were released by the IRS.
  • The monthly limit for qualified transportation fringe benefits is to increase.

Adjustments to transportation fringe benefits and other tax-related amounts for use in 2019 were released Nov. 15 by the Internal Revenue Service.

The monthly limit for the qualified transportation fringe benefits and for qualified parking is to increase to $265 from $260 while other tax benefits are to increase slightly in 2019 because of inflation adjustments, the IRS said in Revenue Procedure 2018-57.

Each year, the agency publishes inflation adjustments for more than 50 tax provisions. The latest adjustments are to be used for 2019.
Following are payroll-related provisions that are to change in 2019:
  • The personal exemption is to be zero, unchanged from 2018, because of the elimination of personal exemptions under the tax code overhaul (Pub. L. 115-97).
  • A new item lists $4,200 as the 2019 exempt amount of wages, salary, or other income to apply to tax levies for years when the personal exemption amount is zero. The tax code overhaul set this amount for 2018 as $4,150, the same as the IRS-announced withholding allowance amount for 2018.
  • The foreign earned income exclusion is to increase to $105,900 from $103,900.
  • The adoption tax credit is to increase to $14,080 from $13,810.
  • The health flexible-spending arrangement limit is to increase to $2,700 from $2,650.
  • Penalty amounts for failing to file tax returns and deposit taxes also increase for 2019.
  • The standard deduction for married filing jointly is to increase to $24,400 from $24,000, to $12,200 from $12,000 for single taxpayers and married individuals filing separately, and to $18,350 from $18,000 for heads of households.

Reproduced with permission. Published Nov. 15, 2018. Copyright 2018 by The Bureau of National Affairs, Inc. (800-372-1033) <http://www.bna.com>
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