As the 2020 filing season is quickly approaching, we would like to remind you of important tax changes that will take effect.
- Fraud Detection: To enhance our efforts to safeguard District tax dollars and combat identity theft, OTR is retiring the identity confirmation process via Lexis Nexis, and is moving to an online Fraud Detection Service (FDS).
- Individual Responsibility Requirement: A new District of Columbia law requires all residents to have qualifying health coverage beginning in 2019, get an exemption, or pay a shared responsibility payment on their DC income tax return
For residents (and/or their dependents) who are without coverage for a full year, the penalty for 2019 is: $695 for each adult and $347.50 for each child, up to $2,085 per family or 2.5 percent of, the taxpayer’s federal adjusted gross income less the applicable standard deduction amount that corresponds to the taxpayer’s filing status claimed on their DC income tax return (D-40), whichever is greater, and capped by the applicable average premium for a bronze level health plan available through DC Health Link.
Residents who do not have qualifying health coverage for the full year will be required to complete Schedule HSR and file it with their DC income tax return to either claim an exemption or to calculate their shared responsibility payment.
For more details about the shared responsibility payment or exemptions from the penalty visit: dchealthlink.com/individual-responsibility-requirement.
Tax Form Changes:
- Form D-40EZ: Beginning with tax year 2019, form D-40EZ will no longer be available for use. Taxpayers must instead use form D-40 to file their District tax return.
- Standard Deduction: The standard deductions will increase based on the federal law
- Schedule H: Changes to the Homeowner and Renter Property Tax Credit amounts for tax year 2019 are as follows:
- The Early Learning Tax Credit: The credit has been renamed "Keep Child Care Affordable Tax Credit" and the taxable income thresholds have changed
- Statutory Resident/Part-Year Resident: Taxpayers claiming part-year residency may now be required to file as a statutory resident.
- Schedule QCGI: The Eligible Qualified High Technology Company (QHTC) Capital Gain Investment Tax is applicable to individual income (D-40), franchise (D-20 and D-30), and fiduciary (D-41) tax returns filed after December 31, 2018