Taxes 1999-2000 >Page 1, 2, 3, 4
Tax Changes for 1999 Returns
Here are some highlights of changes to keep in mind when doing your
1999 return. For a complete detailed list, see IRS
Publication 553.
Standard Deduction Amount Increased
The standard deduction for most taxpayers who do not itemize deductions on
Schedule A of Form 1040 is higher for 1999 than it was for 1998. The exact
amount depends on your filing status. For more information including standard
deduction tables, see IRS
Publication 501.
Exemption Amount Increased
The amount you can deduct for each exemption has increased from $2,700 in
1998 to $2,750 in 1999. However, you can lose all or part of this exemption if
your adjusted gross income is above $94,975 for married persons filing
separately, $126,600 for unmarried individuals, $158,300 for heads of household,
and $189,950 for married persons filing jointly. See IRS
Publication 553 for details.
Limit on Itemized Deductions Increased
You lose all or part of the benefit of your itemized deductions if your
adjusted gross income is above a certain amount. In 1999 this amount is
increased to $126,600 for all filing statuses except married filing separately
($63,300 for that filing status). See IRS
Publication 501 for more information.
Capital Gains
If your only capital gains are distributions from mutual funds, you may not
need to file Schedule D. Instead, the gains can generally be reported directly
on Form 1040, line 13. Use the Capital Gain Tax Worksheet in the Form
1040 instructions to figure the tax. This simpler method of reporting capital
gains is discussed in IRS
Publication 550.
Child Tax Credit Increased
The maximum child tax credit for each qualifying child has increased from
$400 to $500.
Earned Income Credit
There have been several changes to EIC. For details, see IRS
Publication 596, Earned Income Credit.
Self Employed Health Insurance Deduction
If you are self employed, you can now deduct 60% of the amount you
paid for medical insurance for yourself and your family. After 2001, the
deduction will increase again. For more information, see IRS
Publication 535.
Deduction for Stop Smoking Programs
In 1999, you can deduct the amount you spent on a program to stop smoking as
a medical expense on Schedule A (Form 1040). However, you cannot include any
amount you pay for drugs designed to help stop smoking that do not require a
prescription, such as nicotine gum or patches.
Tax Payment by Credit Card
The IRS is continuing the program allowing tax debts to be paid using
American Express® Card, MasterCard®, or Discover® Card. Credit cards can be
used to pay the following:
- Tax owed on your 1999 tax return.
- Tax owed when you request an extension of time to file your 1999 tax return.
- Estimated tax payments for 2000.
You must make each payment separately. For example, do not include your estimated tax payment for 2000 with your payment of tax owed on your 1999 tax return. For information on how to make these payments by credit card, see your tax form instructions.
Details on All
Changes for 1999 Individual Filers
IRS Publication 553 -- 1999 Changes -- contains the above and several
other changes for individuals.
Details on
Changes for 1999 Business Filers
Also in IRS Publication 553, what businesses need to be aware of for
1999 filing.
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