Top 3 Tax Changes Retirees Need to Know About in 2020
The Tax Cuts and Jobs Act of 2017 brought massive changes to federal taxes in the United States. We saw many changes take effect last year, but there are still more changes to come. Let’s look at the biggest changes you’ll see on your federal tax return this year. 1. No More Individual Mandate Penalty Under the Affordable Care Act, people who were required to have health insurance but didn’t get coverage faced the shared responsibility payment — better known as the individual mandate penalty. If you didn’t have health insurance, the penalty was due when you paid your taxes. The Tax Cuts and Jobs Act of 2017 removed this penalty, effective 2019. This means that even if you didn’t have health insurance in 2019, you won’t have to pay this penalty when filing your taxes in 2020. 2. Higher HSA Contribution Limits Over the next few years, expect to see the contribution limits of certain
tax-advantage accounts increase. Health savings accounts (HSAs) are one such account for which the limits will increase each year. The 2019 contribution limits for those eligible for an HSA are: • Self-only coverage: $3,500 (increased by $50 last year) • Family coverage: $7,000 (increased by $100)
• 24%: Between $168,401 to $321,450
• 22%: Between $78,951 to $168,400 • 12%: Between $19,401 to $78,950 • 10%: Up to $19,400
To see the full list of new tax brackets, visit the IRS website at IRS. gov.
3. Higher Income Brackets Thanks to inflation, the income tax brackets are a little higher than they were last year. For example, for married couples filing jointly, the
These are just a few
of the major changes that
may impact how you file taxes in 2020 and beyond. Be
new tax brackets are: • 37% tax rate: Over $612,351 • 35%: Between $408,201 to $612,350 • 32%: Between $321,451 to $408,200
sure to ask your financial advisor about the tax changes you need to be aware of and how to get the most out of your money.
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A traditional New Year’s favorite in the South, Hoppin’ John includes black-eyed peas that are said to represent coins, a sign of prosperity for the coming year. It’s usually served alongside collard greens, which represent cash.
the experienced and professional team I have put together to get the job done efficiently and in a timely manner.
As we start 2020, there are many things our clients should be aware of. In addition to the typical retirement worries like rising health care costs, a volatile stock market, low interests rates, and federal taxes, we are focused on the trade war with China. This can impact your savings, not to mention the upcoming election and all the changes that can come with it. I want to remind my clients that your plans build in protection of retirement savings in many ways from the start, and we are laser-focused on addressing risks, no matter what the future brings — but we can’t do that if our offices aren’t running smoothly, and that is why I am focusing on better communication in addition to improved work product efficiency. Thank you for trusting us to help you through 2019. I look forward to welcoming the new year and the exciting progressive changes it will bring to WRN.
INGREDIENTS
• 1 cup dried black- eyed peas • 5–6 cups water • 1 dried hot pepper, optional (arbol and Calabrian are great options)
• 1 smoked ham hock • 1 medium onion, diced • 1 cup long-grain white rice
DIRECTIONS
1. Wash and sort peas. 2. In a saucepan, cover peas with water, discarding any that float. 3. Add pepper, ham hock, and onion. Gently boil and cook uncovered, stirring occasionally, until peas are just tender, about 90 minutes. At this point, you
should have about 2 cups of liquid remaining. 4. Add rice, cover, drop heat to low, and simmer for 20 minutes, undisturbed. 5. Remove from heat and let steam for an additional 10 minutes, still covered. 6. Remove lid, fluff with a fork, and serve.
-Adam Wolf, CPA, CFP ®
2 LOCATIONS TO SERVE YOU! Jacksonville & Fleming Island
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