Monthly Archives November 2018

The IRS posted Tax Reform Tax Tip 2018-182 concerning child tax credits.  The Tax Tip provided the following information:  The new law increases the child tax credit from $1,000 to $2,000. Eligibility for the credit has not changed. As in past years, the credit applies if all of these apply: the child is younger than 17 at the end of the tax year, December 31, 2018 the taxpayer claims the child as a dependent the child lives with the taxpayer for at least six months of the year Credit refunds. The credit is refundable, now up to $1,400. If a
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401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 WASHINGTON — The Internal Revenue Service today announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2019.  The IRS today issued technical guidance detailing these items in Notice 2018-83. Highlights of Changes for 2019 The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $18,500 to $19,000. The limit on annual contributions to an IRA, which last increased in 2013, is increased from $5,500 to $6,000.
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