A new law signed in late 2019 includes many changes that may affect your 2019 tax return, due to the Internal Revenue Service (IRS) by April 15. These changes are separate from the big 2017 tax law changes that went into effect last year.
New Law Extends Tax Breaks for Many
The Further Consolidated Appropriations Act, 2020, was signed into law on December 20, 2019. It includes provisions from two acts:
This act makes important changes to retirement savings plans. For example, it changes the age at which you must start taking distributions from 70 ½ to 72.
Learn about more SECURE Act changes to retirement and education savings plans.
This act reauthorizes many tax credits and deductions for tax years 2018 - 2020 that had expired at the end of 2017. These include deductions for tuition and fees and for mortgage insurance premiums.
Other changes in the new law include:
Reduction in the medical expense deduction floor
Energy-efficient homes credit
Employer credit for paid family and medical leave
Work opportunity credit
Special rule for determining earned income
Repeal of maximum age for traditional IRA contributions
Expansion of Section 529 plans
For the complete list of affected tax law provisions see the Joint Committee on Taxation List of Expiring Tax Provisions 2020.
These tax breaks are retroactive; you can go back and amend your 2018 tax return to claim them for that tax year.
Changes Cause Recalls and Delays for Tax Forms, Instructions, and Publications
The timing of the law has caused recalls and delays for many tax forms, instructions, and publications. In some instances, the IRS has updated a tax form but not the instructions for it. You may want to check: