Changes Coming to Ohio Individual Income Tax in 2019 and 2020

Governor DeWine recently enacted tax law changes for 2019 and 2020. The 2019 changes can be read here, 2020 will be summarized and communicated in the future.

IRS Announces Start of 2019 Filing Season

Despite the government shutdown, the Internal Revenue Service confirmed on January 7, 2019 that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

IRS Commissioner Chuck Rettig said “We are committed to ensuring that taxpayers receive their refunds notwithstanding the government shutdown. I appreciate the hard work of the employees and their commitment to the taxpayers during this period.”.

The initial deadline for 2018 individual tax returns is April 15, 2019.

2019 IRA and 401(k) Contribution Limits Announced

The IRS recently announced the inflation-adjusted contribution limits for 2019.

The 2019 401k limit, for those under 50 years of age, is $19,000 (a $500 increase from 2018).

The 2019 IRA limit, for those under 50 years of age, increased to $6,000.

More can be read here.

2019 Mileage Rates Announced

The IRS recently released the standard mileage rates for 2019. These increased slightly from last year’s amounts:

  • 58 cents for every mile of business travel driven, up 3.5 cents from the rate for 2018.
  • 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018.
  • 14 cents per mile driven in service of charitable organizations.

Details can be found here.

“Paycheck Checkup” Tool Available on IRS.gov

In response to the myriad changes in tax laws effective in 2018, the IRS has released a Paycheck Checkup tool to assist taxpayers in ensuring their tax withholding levels are appropriate under the new laws. Using this tool now could help you avoid an unexpected tax bill next April.
The tool can be accessed here.

2018 Withholding Tables Now Available

The IRS released the revised 2018 withholding tables today via Notice 1036. They can be found here.
Employers should begin using the 2018 withholding tables as soon as possible, but not later than Feb. 15, 2018. They should continue to use the 2017 withholding tables until implementing the 2018 withholding tables.