This year, there a several new tax law changes that have been enacted. Listed below are some of the key changes:
If your filing status is married filing separately, and you are any age, then you must file a return if your gross income was at least $5.00
Tax Cut and Jobs Act (TCJA)
For Tax Year 2018, the federal government made many tax changes that may affect your federal adjusted gross income and federal deductions. As a result, your District adjusted gross income and District deductions may also be affected.
Starting in tax year 2018, District of Columbia conforms to federal law for purposes of the standard deduction. District of Columbia standard deduction is now comprised of the basic standard deduction and, for certain taxpayers, an additional standard deduction. For tax year 2018, the basic standard deduction amounts are:
- $12,000 for single filers and married/registered domestic partners filing separately (on separate returns);
- $18,000 for head of household filers;
- $24,000 for married/registered domestic partners filing jointly and a qualifying widow(er) with dependent children;
- A formula for dependent filers (see worksheet). Schedule S-Calculation G-1
- For 2018, the additional standard deduction is
- $1,300 for age 65 or over or blind (taxpayer and/or spouse/registered domestic partner).
- $1,600 if single or head of household is allowed – use Schedule S, Calculation G-1.
- When married filing separately, you may take an additional standard deduction for your spouse/registered domestic partner only if your spouse/registered domestic partner had no gross income, is not filing a return, and cannot be claimed as a dependent by another taxpayer.
Personal Exemption Suspended:
For tax year 2018, you no longer can claim a personal exemption deduction for yourself, your spouse, or your dependents, they have been eliminated.
State and Local Real Property Tax Deduction:
Starting in tax year 2018, the federal deduction for state and local income, sales, and property taxes is limited to a combined deduction of $10,000 ($5,000 if married filing separately). The District of Columbia does not conform to this limit and you may subtract the total of state and local real property taxes paid.
Early Learning Tax Credit:
For 2018 only, taxpayers may be eligible for a new refundable credit of up to $1,000 per dependent eligible child for qualified childcare expenses. Use Schedule ELC to claim for an eligible child under 4 years of age as of 9/30/18 and payments made during the taxable year after August 31st if the eligible child meets requirements for Pre-K enrollment.
Low Income Tax Credit:
Starting in tax year 2018, the low-income tax credit has been eliminated.
- Schedule S, Calculation G-1- Computation of Standard Deduction.
- Schedule ELC- Early Learning Tax Credit.
- Form DC-8379- Injured Spouse Allocation (if claiming injured spouse protection). When claiming this protection, you must attach Form DC-8379 which can be found in the D-40 income tax booklet. Do not use the D-40EZ form.
- Schedule H - Homeowner and Renter Property Tax Credit
- The maximum property tax credit stays at $1,025
- Schedule H federal Adjusted Gross Income (AGI) eligibility threshold for under age 70 increases to $51,000
- Schedule H federal AGI eligibility amount for age 70 and older increases to $62,600
The Food Commodity Donation credit is eliminated.
The Public Fund for Drug Prevention and Children At-Risk contribution has been renamed to "Taxpayer Support for Afterschool Programs for At-Risk Students."
DC Earned Income Tax Credit for Childless Workers - The calculation for determining the DC Earned Income Tax Credit for Childless Workers has changed. A DC Earned Income Tax Credit Worksheet for Filers Without A Qualifying Child is included in the Individual Income Tax Forms and Instructions Booklet.