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Form D-40EZ is no longer available for use for Tax Year 2019 and later. Taxpayers who used this form in the past must now use Form D-40.

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Learn About Tax Year 2020 Filing Season Changes

Friday, December 13, 2019

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). This new process will require taxpayers selected for identity verification to complete the verification quiz via the online portal, MyTax.DC.gov. Taxpayers who have received a Notice of Identity Confirmation with a date prior to December 16, 2019, and have not confirmed their identity, must contact the Return Integrity Unit at (202) 741-8629.
     
  • 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 (Form D-40), due on April 15, 2020 (October 15 if an extension of time is filed).  

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 as follows:
     
  • Single and married/registered domestic partner filers filing separately: $12,200
  • Head of Household: $18,350
  • Married/registered partners filing jointly and qualifying widow(er) with dependent child(ren) filers: $24,400
  • If born before January 2, 1955, or blind, an additional standard deduction of $1,300 ($1,650 if single or head of household) is allowed by using Schedule S, Calculation G-1       
     
  • Schedule H: Changes to the Homeowner and Renter Property Tax Credit amounts for tax year 2019 are as follows:
     
  • Property tax credit increases to $1,200
  • Schedule H federal Adjusted Gross Income (AGI) eligibility threshold for taxpayers under age 70 increases to $55,000
  • Schedule H federal AGI eligibility threshold for taxpayers age 70 and older increases to $75,000
     
  • The Early Learning Tax Credit: The credit has been renamed "Keep Child Care Affordable Tax Credit" and the taxable income thresholds have changed to:
     
    • Single, head of household, married/registered domestic partners filing separately on the same return: $150,000
    • Married/registered domestic partners filing separately: $75,000
       
  • 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. The tax on a capital gain from the sale or exchange of an investment in a DC QHTC shall be at the reduced rate of 3 percent if:
     
    • The investment was made after March 11, 2015
    • The investment was held by the investor for at least 24 continuous months
    • At the time of the investment, the stock of the QHTC was not publicly traded
    • The investment is in common or preferred stock of the QHTC

Additional information will be updated to OTR’s website.