Important Reminders for the Upcoming 2019 Filing Season

November 28, 2018

As you begin to get ready for the upcoming 2019 filing season here are some important reminders:

Delay in Federal Refunds for Returns that claim EITC or Additional Child Tax Credit
Remember by law any refunds on federal returns that claim EITC or Additional Child Tax Credit cannot be issued until mid-February.

These refunds will begin to be released on February 15 and should be in taxpayer’s accounts by the end of February.

For more details see the Steps to Take Now to Get a Jump on Next Year’s Taxes on the IRS webpage.

Affordable Care Act Penalty for 2018 returns
The repeal of the individual penalty provision for not having health insurance does not go into effect until 2019.

Therefore as we approach the beginning of the 2019 filing season the individual penalty (individual shared responsibility payment) applies for 2018. This means that if an individual did not have health insurance for all or part of 2018 and did not qualify for an exemption then they will owe a penalty on their 2018 federal return.

If it is determined that an individual does owe a penalty for 2018, it is calculated as the greater of: 

• 2.5% of the individual’s income that exceeds their 2018 filing threshold (standard deduction for their filing status):

Or

• A flat dollar amount that is assessed for the taxpayer, spouse, and dependents as follows:
• $695 for taxpayer, spouse, and dependents over age 18
• $347.50 for each dependent under age 18

The maximum family flat dollar amount for 2018 is $2,085

See pages 16-20 of the draft of the 2018 Form 8965 instructions for more information on how the penalty is calculated.

Expiration of ITINs
At the end of 2018 the following ITINs will expire and must be renewed if an individual wants to use it on a 2018 federal return:

• ITINs with middle digits of 73, 74, 75, 76, 77, 81 or 82.
• ITINs that have not been used at least once in the last three consecutive years

See the following on the IRS website for more information on who is affected and how to renew an ITIN:

• IRS Individual Taxpayer Identification Number page
• Get Ready for Taxes: Renew expiring ITINs now to file a return next year IRS news release of November 5, 2018.