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2018 Key Numbers | Print |  E-mail

2018 Tax Rates Etc as Indexed 

Most of the inflation adjusted amounts are indexed based on inflation factors as of August 31st each year.  Various tax reference sources, such as CCH and RIA, make projections based on these factors.  We have chosen to wait until the official numbers have been released.  Here are the official 2018 amounts. 

Revenue Procedure 2017-58 contains most of the inflation adjusted amounts for 2018.  A copy of the Rev. Proc. can be found at www.irs.gov/pub/ by clicking on irs?drop and clicking on rp-2017-58.

 

- Tax Rates - Ceilings 

Single 

10% bracket tops at $9,525 

15% tops at $38,700 

25% tops at $93,700 

28% tops at $195,450 

33% tops at $424,950 

35% tops at $426,700 

39.6% applies to anything over $426,700 

 

MFJ 

10% bracket tops at $19,050 

15% tops at $77,400 

25% tops at $156,150 

28% tops at $237,950 

33% tops at $424,950 

35% tops at $480,050 

39.6% applies to anything over $480,050 

 

Head of Household 

10% bracket tops at $13,600 

15% tops at $51,850 

25% tops at $133,850 

28% tops at $216,700 

33% tops at $424,950 

35% tops at $453,350 

39.6% applies to anything over $453,350 

 

MFS 

10% bracket tops at $9,525 

15% tops at $38,700 

25% tops at $78,075 

28% tops at $118,975 

33% tops at $212,475

35% tops at $240,025

39.6% applies to anything over $240,025

Estates & Trusts

15% bracket tops at $2,600

25% tops at $6,100

28% at $9,300

33% at $12,700

39.6% applies to anything over $12,700

- Exemption amount is $4,150.

- Standard deduction amounts are:  MFJ-$13,000, Single & MFS-$6,500, HH-$9,550, Additional amounts for aged/blind-$1,600 for unmarried and $1,300 for married status.

- Exemption and itemized deduction phase-outs begin for MFJ/QW at $320,000, HH at $293,350, S at $266,700, and MFS at $160,000.

- Kiddie Tax

Standard Deduction is $1,050, the next $1,050 is taxed at child’s rate, and the excess is taxed at parent’s rate.  AMT Exemption amount is the child’s earned income plus $7,650.

- AMT – The exemption amounts are:

MFJ/QW = $86,200

S/HH = $55,400

MFS = $43,100

Estates/trusts = $24,600

The excess taxable income level (where the 28% AMT rate applies) is:

MFJ/QW/S/HH = $191,500

MFS = $95,750

- Adoption Credit - $13,840 is the maximum for the credit or assistance amounts.  The phase out starts at $207,580 and is completely phased out at $247,580.

- Child Tax Credit – refundable portion uses an income base of $3,000.

- Education Credits.  The phase-out for the American Opportunity Credit starts at $80,000 ($160,000 for MFJ).  The phase-out for the Lifetime Learning Credit $57,000 ($114,000 for MFJ).

- EIC maximum AGI/earned income for MFJ is $46,102 for one child, $51,598 for two children, $54,998 for three or more children, and $21,000 for no children.  The EIC maximum AGI/earned income for other taxpayers is $40,402 for one child, $45,898 for two children, $49,298 for three or more children, and $15,310 for no children.  Excessive investment income level for EIC is $3,500.

- Transportation Fringe maximum exclusion for monthly parking is $260/month as well as for commuter highway vehicle and transit passes.

- Savings Bonds for Education phase out level starts at $119,550 for MFJ and $79,700 for other filing statuses.  This is completely phased out at $149,550 for MFJ and $94,700 for other filing statuses.

- §179 election maximum is $520,000, with a phase-out starting at $2,070,000.

- Foreign Earned Income exclusion is $104,100.

- Long-term care premiums are limited to:

Age

40 or less-------$420

>40, but not >50------$780

>50, but not >60------$1,560

>60, but not >70------$4,160

>70------$5,200

- Long-term care contract benefit amount is $360 per day.

- Student loan interest maximum is $2,500, with a phase out starting at $65,000 ($135,000 for MFJ).  This is completely phased out at $80,000 ($165,000 for MFJ)

- Annual gift tax exclusion remains at $15,000, while the limit on gifts to noncitizen spouses is at $152,000.

- Exclusion amount for Estate/Gift tax is $5,600,000.

- Attorney Fee Awards are limited to $200 per hour.

- MSA

Self-only coverage annual deductible is not less than $2,300 nor more than $3,450, with out-of-pocket limits not in excess of $4,600.

Family coverage annual deductible is not less than $4,600 nor more than $6,850, with out-of-pocket limits not in excess of $8,400.

- Educator Deduction – The maximum above-the-line deduction for qualified educators remains at $250.

- Cafeteria Plan – The dollar limitation for §125 health FSAs increases to $2,650.

- Qualified Small Employer Health Reimbursement Arrangement – Limits are $5,050 for individual coverage and $10,250 for family coverage (up from $4,950 individual and $10,000 family for 2017).

- Small Business Health Insurance Credit – The dollar amount for purposes of limiting this credit is $26,700.

- Penalty for failure to file a Partnership or S corporation return is $200 per month per Schedule K-1.

- Penalty for failure to file correct Forms 1099 is $270 (intentional disregard is $540).

Penalty for failure to exercise due diligence in determining taxpayer’s eligibility for child tax credit, American Opportunity tax credit, and earned income tax credit is $520.

 

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