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The Tax Benefits Renewed
For Tax Years 2018, 2019 & 2020
March 09, 2020
  • Increased standard deduction. If you suffered a casualty loss attributable to certain incidents federally declared as disasters in 2019, you may be able to claim a larger standard deduction.
  • Earned income credit (EIC) and additional child tax credit (ACTC). If you were impacted by certain incidents federally declared as disasters in 2019, you can elect to use your prior year earned income to figure both your 2019 EIC and 2019 ACTC.
  • Personal casualty losses. Special rules and return procedures apply to personal casualty losses attributable to certain incidents federally declared as disasters in 2019.
  • Charitable contributions. Certain cash contributions you made for relief efforts for federally declared disasters that occurred in 2019 are not subject to the 60% limit. A special rule applies to certain cash contributions made to the spouse or any dependents of victims of the mass shooting in Virginia Beach on May 31, 2019.
  • Tax on certain children with unearned income. (Kiddie Tax modification.) A child may be able to calculate their tax based on the tax rate of his or her parent.

    For tax year 2019, taxpayers can elect this alternative application for the tax on their unearned income by completing Form 8615, Tax for Certain Children Who Have Unearned Income, differently depending on their election.

    Taxpayers who make this election for 2019 must include a statement with their return specifying "election to modify tax of unearned income."
  • Credit for production of Indian coal.

  • Indian employment credit.

  • Mine rescue team training credit.

  • Empowerment zone tax incentives.


  • Second generation biofuel producer credit (formerly known as the “cellulosic biofuel producer credit”).

  • Incentives for biodiesel and renewable diesel.

  • Credit for electricity produced from certain renewable resources (other than wind).

  • Credit for construction of new energy efficient homes.

  • Special depreciation allowance for second generation biofuel plant property.

  • Energy efficient commercial buildings deduction.

  • Special rule for sales or dispositions to implement Federal Energy Regulatory Commission (“FERC”) or State electric restructuring policy.

  • Incentives for alternative fuel and alternative fuel mixtures.

  • Three-year depreciation for race horses 2 years old or younger.

  • Seven-year recovery period for motorsports entertainment complexes.

  • Accelerated depreciation for business property on an Indian reservation.

  • Expensing of certain qualified film and television and live theatrical productions.

  • Credit for certain expenditures for maintaining railroad tracks.

The new laws also repealed the following taxes first passed as part of the Affordable Care Act:

  • The 2% medical device excise tax;
  • The annual fee on health insurance providers known as the health insurance tax; and

  • The 40% excise tax on high-cost health insurance plans known as the Cadillac tax.


Publication 17, Your Federal Income Tax, features an in-depth look on tax changes for 2019 including recent legislative changes and covers the general rules for filing a federal income tax return. It supplements the information contained in the tax form instruction booklet.

Better yet, check our newsletters regularly to keep up-to-date with any new regulations impacting your finances and taxes.
It all started on February 25, 1913 when the 16th Amendment officially became part of the Constitution, granting Congress constitutional authority to levy taxes on corporate and individual income. Year after year, commissioner after commissioner, witnessed how Congress adopted and the President signed new tax laws which needed new or updated rules and regulations.


And year 2019 was not different.

Three tax laws, which are separate from the big ones that went into effect in 2018 from the Tax Cuts and Jobs Act of 2017, were enacted on December 20 of last year together with a large year-end spending bill.

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 extended certain previously expired tax benefits to 2018 and 2019, and provided tax relief for certain incidents federally declared as disasters in 2018 and 2019. The extended benefits and the disaster relief may now be claimed on your 2018 and 2019 returns, if you qualify.

The Setting Every Community Up for Retirement Enhancement Act of 2019 (the SECURE Act) made other changes, such as increasing the penalty for failing to file a tax return and modifying the rules related to the taxation of unearned income of certain minor children. The SECURE Act also relaxed certain retirement plan contribution and distribution requirements beginning January 1, 2020.

The Virginia Beach Strong Act provides special treatment to certain contributions made for the relief of families of victims of the Virginia Beach mass shooting.

Many of the extenders are effective for the 2019 and 2020 tax years and made amending 2018 tax returns to take advantage these changes an option in some instances; other changes were permanently extended.

Impacted 2018 forms, instructions and schedules are being revised to reflect the legislation enacted December 20, 2019. The updated 2018 revisions will be posted to IRS.gov for taxpayers to file amended returns accurately.

You may need to file an amended return using Form 1040-X, Amended U.S. Individual Income Tax Return, to claim the benefits now available for 2018.

Penalty for failure to file a tax return within 60 days of the due date (with extensions) has increased to the smaller of $435 or the amount of tax owed. The increased penalty applies to returns whose due date (with extensions) is after December 31, 2019.

Below are individual tax provisions which have been extended for tax years 2018, 2019, and some for 2020.


  • Deduction for tuition and fees. You can deduct qualified expenses paid in 2019.

  • Deduction for mortgage insurance premiums. You can treat amounts you paid for qualified mortgage insurance during 2019 as home mortgage interest.

  • Exclusion of qualified principal residence indebtedness. Qualified principal residence indebtedness discharged in 2019 can be excluded from income.

  • Credit for certain nonbusiness energy property. You can claim the nonbusiness energy property credit in 2019, if you meet the 2019 criteria.

  • Alternative motor vehicle credit. You may be able to claim the alternative motor vehicle credit for vehicles purchased in 2019.

  • Credit for two-wheeled plug-in electric vehicles. You may be able to claim the credit for qualified two-wheeled plug-in electric vehicles for vehicles acquired in 2019.

  • Credit for alternative fuel vehicle refueling property. You may be able to claim this credit for alternative fuel vehicle refueling property you placed in service during 2019.

  • Deduction for medical expenses. You may be able to deduct the part of your medical and dental expenses that exceed 7.5% of your adjusted gross income. This deduction was already available for 2018 and is now extended to 2019.

  • Disaster tax relief was also enacted for those affected by certain federally declared disasters.

  • Certain distributions from retirement plans when there is a disaster. New rules provide for tax-favored distributions from and repayments to retirement plans (including IRAs) for certain taxpayers who suffered economic losses as a result of certain incidents federally declared as disasters in 2019.
  • Certain other retirement plan distributions and also contributions. Beginning January 1, 2020, certain retirement plan distributions and contribution requirements have been relaxed. Taxpayers do not need to have suffered an economic loss from a federally declared disaster to benefit from these relaxed rules.

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