Welcome to 2019! First, some good news. The 2019 tax changes are much less significant than the whopper we got last year. In fact, most of it is just adjusting to inflation. Beyond that it’s some delayed implementations from the Tax Cuts and Jobs Act (TCJA).
New rules
I hesitate to mention it, but one of the new rules that could most impact the streaming community is that there’s no longer a penalty for not having health insurance.
That being said, it’s still incredibly ill-advised to not have health insurance if you live in the US. We are unfortunately good at bankrupting people with medical issues. Yes, it sucks to have to pay monthly. Those monthly payments keep you from an even larger potential disaster so don’t skimp on health insurance.
If you’re contributing to a high deductible health plan you can lower your monthly cost and get access to a Health Savings Account, the most tax preferred account available in the US.
Inflation adjustments
This is the more boring part but it’s still relevant.
First, you can see here how the tax brackets changed. Generally, they creep up a bit each year so that someone earning the same inflation adjusted income is also paying the same amount relatively in tax.
Next, the amount you can shelter in a tax preferred account has increased.
| 2018 | 2019 | |
| HSA single | $3,450 | $3,500 |
| HSA family | $6,900 | $7,000 |
| IRA | $5,500 | $6,000 |
| 401(k) salary deferral | $18,500 | $19,000 |
| 401(k) total deferral | $56,000 | $56,000 |
| SEP total deferral | $56,000 | $56,000 |
Conclusion
Good news! Not much changed this year besides you getting to shelter a bit more income from taxes. Even though you’re no longer penalized for not having health insurance you should still get coverage.
You don’t have to figure this out alone. This is what we do- help streamers make great money and business decisions. If that’s something that sounds interesting to you reach out me or schedule some time for a free consult. You can check out what I do here.
