2018 Tax Brackets, Standard Deduction Amounts & More…

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2018 Tax Brackets, Standard Deduction Amounts & More (for taxes due April 15, 2019)

 

 For Single Filers:

Marginal Tax Rate Taxable Income Range If Your Income Falls Within This Range, Your Income Tax Is…
10% $0-$9,525 10% of your taxable income
12% $9,525-$38,700 $952.50 + 12% of the amount over $9,525
22% $38,700-$82,500 $4,453.50 + 22% of the amount over $38,700
24% $82,500-$157,500 $14,089.50 + 24% of the amount over $82,500
32% $157,500-$200,000 $32,089.5. + 32% of the amount over $157,500
35% $200,000-$500,000 $45,689.50 + 35% of the amount over $200,000
37% Over $500,000 $150,689.50 + 37% of the amount over $500,000

 

For Heads of Household:

Marginal Tax Rate Taxable Income Range If Your Income Falls Within This Range, Your Income Tax Is…
10% $0-$13,600 10% of your taxable income
12% $13,600-$51,800 $1,360 + 12% of the amount over $13,600
22% $51,800-$82,500 $5,944 + 22% of the amount over $51,800
24% $82,500-$157,500 $12,698 + 24% of the amount over $82,500
32% $157,500-$200,000 $30,698 + 32% of the amount over $157,500
35% $200,000-$500,000 $44,298 + 35% of the amount over $200,000
37% Over $500,000 $149,298 + 37% of the amount over $500,000

 

For Married Couples Filing Jointly:

Marginal Tax Rate Taxable Income Range If Your Income Falls Within This Range, Your Income Tax Is…
10% $0-$19,050 10% of your taxable income
12% $19,050-$77,400 $1,905 + 12% of the amount over $19,050
22% $77,400-$165,000 $8,907 + 22% of the amount over $77,400
24% $165,000-$315,000 $28,179 + 24% of the amount over $165,000
32% $315,000-$400,000 $64,179 + 32% of the amount over $315,000
35% $400,000-$600,000 $91,379 + 35% of the amount over $400,000
37% Over $600,000 $161,379 + 37% of the amount over $600,000

 

For Married Couples Filing Separately:

Marginal Tax Rate Taxable Income Range If Your Income Falls Within This Range, Your Income Tax Is…
10% $0-$9,525 10% of your taxable income
12% $9,525-$38,700 $952.50 + 12% of the amount over $9,525
22% $38,700-$82,500 $4,453.50 + 22% of the amount over $38,700
24% $82,500-$157,500 $14,089.50 + 24% of the amount over $82,500
32% $157,500-$200,000 $32,089.50 + 32% of the amount over $157,500
35% $200,000-$300,000 $45,689.50 + 35% of the amount over $200,000
37% Over $300,000 $80,689.50 + 37% of the amount over $300,000

 

Lower 2018 Tax Brackets and Changed Income Ranges
Major tax bracket changes occurred for 2018 with rates at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. For more on the tax brackets and income ranges visit our website at cpa-baltimore.com.

Increased Standard Deduction
For tax years beginning after Dec. 31, 2017 and before Jan. 1, 2026, the standard deduction is increased to $24,000 for married individuals filing a joint return; $18,000 for head-of-household filers; and $12,000 for all other taxpayers. Under the new law, no exceptions are made to the standard deduction for the elderly or blind.

State, Local, and Property Taxes – Limited to $10K
Much has changed with the passing of the Tax Cuts and Jobs Act—changes that will benefit some taxpayers and negatively impact others. One change, in particular, has been the subject of much debate in Congress, the state and local income tax (SALT) deduction, which is now limited to $10,000. For tax years beginning after December 31,2017 and before January 1, 2026, a taxpayer may claim an itemized deduction of up to $10,000 ($5,000 for a married taxpayer filing a separate return) for taxes paid at the State and local level, including real and personal property, income, and/or sales taxes. This new law now limits the deduction when it was previously unlimited (depending on your tax bracket).

Increased Child Tax Credit and Income Ranges
Under the 2018 tax reform the credit is worth up to $2,000 per qualifying child. The age cut-off remains at 17 (the child must be under 17 at the end of the year for taxpayers to claim the credit). The refundable portion of the credit is limited to $1,400. The beginning credit phaseout for the child tax credit increased in 2018 to $200,000 ($400,000 for joint filers). The phaseout also applies to the new $500 credit for other dependents.

New Other Dependent Credit
Dependents who can’t be claimed for the Child Tax Credit may still qualify you for the Credit for Other Dependents. This is non-refundable tax credit of up to $500 per qualifying person. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien.

Eliminated Personal Exemptions
The tax bill eliminated the personal and dependency exemptions which were $4,050 in 2017.

Health Care and Medical Expenses
The tax bill eliminates the tax penalty for not having health insurance after December 31, 2018. It also temporarily reduced the percentage of the medical expense deduction from 10% to 7.5% for 2018.

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