The end of 2019 is upon us and, as always, it was a year full of changes for issues that affect your tax returns. We also have some new and exciting changes to our company to share with you.
- Lordan & Camp PLLC is now Artola & Camp, LLC. Chris Lordan has opened his own office, closer to home in the south metro. Long-time employee and Enrolled Agent, Estela Artola is now partnering with Rich Camp. We both look forward to continuing to provide you with the same high-quality business and personal tax and accounting services.
- Our office has moved, but not far. We are now located in a new office space on the second floor of the same building:
Artola & Camp, LLC
14525 Highway 7, Suite 210
Minnetonka, MN 55345
- Our phone number remains the same – (952) 934-8405
- Visit our new website www.artolaassociates.com or find us on Facebook for news and updates.
This year we are excited to offer more paperless options for your tax return. If you would like your tax return on a complimentary flash drive or delivered to you securely via our Sharefile system or email, please let us know.
Tax Update for 2019 Tax Returns
- The earliest acceptance date for electronically filed or paper returns will be approximately January 28, 2020.
- SEP contribution limits are 25% of compensation or an overall limit of $55,000 for 2019. You must deposit contributions for a year by the due date (including extensions) for filing your federal income tax return for the year. If you obtain an extension for filing your tax return, you have until the end of that extension period to deposit the contribution, regardless of when you actually file the return.
- Roth and Traditional IRA contribution limits remain the same and are the lower of $6,000 or your compensation. Those over age 50 may make an additional $1,000 contribution. Roth contributions are subject to phase-out with income over $120,000 for single filers and $189,000 for married filers.
- Starting in 2020 anyone, of any age, may now deposit money into an IRA if they have earned income, such as wages or self-employment income. There are other rules that may apply, but the old rule prohibiting deposits during or after the year turning 70 ½ has been repealed.
- Roth and Traditional IRA distributions limits – Beginning in 2020 the mandatory age to begin distributions from your IRA has been raised to 72 from the old, confusing age 70 ½.
- Health Savings Account contribution limits are $3,500 for single filers and $7,000 for married filers. Those over 55 years old may contribute an additional $1,000 to their plans. Qualifying high-deductible health insurance is required to qualify for HSA contributions. You may make your 2019 HSA contribution up to the due date of your 2019 tax return or April 15, 2020.
- The 2019 FICA earnings limit was $132,900. Wages up to this amount are subject to 6.2% withholding and a 6.2% employer match. The Medicare tax rate of 1.45% and 1.45% employer match applies to all wages earned.
- The 2020 FICA earnings limit has been set at $137,500
Other Changes
Minnesota has adopted many of the IRS changes from 2018 bill, effective for Minnesota returns in 2019
- Property Taxes Paid: Deduction for state and local taxes now capped at $10,000
- Home Mortgage Interest deductibility debt decrease from 1M to 750,00 debt
- Minnesota Exemption is $4,250 per dependent
- Standard deduction for MN is $24,400 for MFJ, $12,000 for single and $18,350 for HOH.
We look forward to working with you for another tax season, and throughout 2020.