Social Security Wage Base for 2019

The social security wage base for this year is $132,900 meaning the max amount withheld from your paycheck will be $8,239.8 (132,900 x .062) for social security(FICA) up from $7,960.80 for 2018. The 2020 wage base will be $136,800. To show you how far this has grown, the initial social security wage base from 1937 to 1949 was $3,000 and the tax rare was only 1% for a big $30 a year.

Secure Act of 2019

The House of Representatives passed this act in May 417-3. It has not been passed by the Senate yet. This act increases the mandatory age for required minimum distributions (RMD) for retirement accounts from age 70 and 1/2 to age 72. The down side to this act is that it requires non spouse beneficiaries of inherited retirement accounts to take distributions over a ten year period instead of over their life expectancy. This means that the account will not be allowed to grow tax free over a long period of time like it is now. I hope it doesn't go through in its present form.

Capital Loss Carryover from a Deceased Spouse

A deceased spouse's capital loss carryover from their own separate property can't be used after the final joint return. The capital loss carryover dies with the deceased. If the capital loss came from jointly owned property, then the surviving spouse can claim half of the loss carryforward. This is another reason for spouses to hold property in joint ownership.

More Opportunity Zone Info

If you are an individual partner in a pass through entity, you have the option of investing your capital gains into an opportunity zone investment within 180 days of the entity's gain realization or 180 days after the year end of the entity. This gives you a lot of flexibility in tax planning which is always a good thing.

Dealing with the State of Georgia

If you get a notice from GA about your tax return, the first thing to do is send it to me to review. You can also go online to the Georgia Tax Center and respond to the notice there and even upload supporting documents. It is very difficult to get someone on the phone at the Georgia Department of Revenue, but if you have to call, the number is 1-877-423-6711.