You don’t have to be an accountant to be curious about tax laws. They impact every American, though they're rarely the same from year to year, making it tough to keep up. With the end of 2019 rapidly approaching, many people are already gearing up for the 2020 tax season. Here are some changes to tax law that'll be in place by then.

3 Tax Changes to Know About for 2020

1. No Individual Mandate Penalty

While many aspects of the Affordable Care Act are still in effect, one controversial policy will be terminated in 2020. Under the ACA, those who lacked minimum essential coverage paid a penalty at tax time. However, those who didn't have coverage in 2019 are in luck, as the penalty is no longer in effect. When you file next year, you won't have to worry about this cost.

2. Elimination of the Alimony Deduction

The Tax Cuts and Jobs Act made several significant changes that affected tax return preparation and filing procedures. One of these impacts alimony payments. With this change, any alimony payments made after a divorce or separation agreement will not be eligible for tax deductions in 2020. Anyone receiving these payments also will not be able to count them as income. 

3. Altered Limits for Retirement Account Contributions

If you've talked to an accountant about how your retirement account contributions were taxed before, get ready to talk to them again next year. The contribution limits on these accounts have changed, and they could be eligible for a deduction on next year's return. For example, the 401(k) and IRA base contribution limits both were increased by $500, raising them to $19,000 and $6,000, respectively. Consult your accountant for information about how to manage your retirement funds efficiently under these new tax laws.

If you need help filing your taxes, choose an accountant that has experience providing prime service to local clients. Joe Heard, CPA in Checotah, OK, offers a variety of helpful services from tax assistance to business consulting, and he has 15 years of experience providing excellent results. To get in touch, call (918) 473-1492 or reach out online.