February 2018
| Single Taxpayers | |||
|---|---|---|---|
| 2018 Tax Rates – Standard Deduction $12,000 | 2017 Tax Rates – Standard Deduction $6,350 | ||
| 10% | 0 to $9,525 | 10% | 0 to $9,325 |
| 12% | $9,525 to $38,700 | 15% | $9,325 to $37,950 |
| 22% | $38,700 to $82,500 | 25% | $37,950 to $91,900 |
| 24% | $82,500 to $157,500 | 28% | $91,900 to $191,650 |
| 32% | $157,500 to $200,000 | 33% | $191,650 to $416,700 |
| 35% | $200,000 to $500,000 | 35% | $416,700 to $418,400 |
| 37% | Over $500,000 | 39.60% | Over $418,400 |
| Married Filing Jointly & Surviving Spouses | |||
|---|---|---|---|
| 2018 Tax Rates – Standard Deduction $24,000 | 2017 Tax Rates – Standard Deduction $12,700 | ||
| 10% | 0 to $19,050 | 10% | 0 to $18,650 |
| 12% | $19,050 to $77,400 | 15% | $18,650 to $75,900 |
| 22% | $77,400 to $165,000 | 25% | $75,900 to $153,100 |
| 24% | $165,000 to $315,000 | 28% | $153,100 to $233,350 |
| 32% | $315,000 to $400,000 | 33% | $233,350 to $416,700 |
| 35% | $400,000 to $600,000 | 35% | $416,700 to $470,700 |
| 37% | Over $600,000 | 39.60% | Over $470,700 |
| Married Filing Separately | |||
|---|---|---|---|
| 2018 Tax Rates – Standard Deduction $12,000 | 2017 Tax Rates – Standard Deduction $6,350 | ||
| 10% | 0 to $9,525 | 10% | 0 to $9,325 |
| 12% | $9,525 to $38,700 | 15% | $9,325 to $37,950 |
| 22% | $38,700 to $82,500 | 25% | $37,950 to $76,550 |
| 24% | $82,500 to $157,500 | 28% | $76,550 to $116,675 |
| 32% | $157,500 to $200,000 | 33% | $116,675 to $208,350 |
| 35% | $200,000 to $500,000 | 35% | $208,350 to $235,350 |
| 37% | Over $500,000 | 39.60% | Over $235,350 |
| Head of Household | |||
|---|---|---|---|
| 2018 Tax Rates – Standard Deduction $18,000 | 2017 Tax Rates – Standard Deduction $9,350 | ||
| 10% | 0 to $13,600 | 10% | 0 to $13,350 |
| 12% | $13,600 to $51,800 | 15% | $13,350 to $50,800 |
| 22% | $51,800 to $82,500 | 25% | $50,800 to $131,200 |
| 24% | $82,500 to $157,500 | 28% | $131,200 to $212,500 |
| 32% | $157,500 to $200,000 | 33% | $212,500 to $416,700 |
| 35% | $200,000 to $500,000 | 35% | $416,700 to $444,500 |
| 37% | Over $500,000 | 39.60% | Over $444,500 |
| Estates & Trusts | |||
|---|---|---|---|
| 2018 Tax Rates | 2017 Tax Rates | ||
| 10% | 0 to $2,550 | 15% | 0 to $2,550 |
| 24% | $2,550 to $9,150 | 25% | $2,550 to $6,000 |
| 35% | $9,150 to $12,500 | 28% | $6,000 to $9,150 |
| 37% | Over $12,500 | 33% | $9,150 to $12,500 |
| N/A | N/A | 39.60% | Over $12,500 |
| FICA (Social Security & Medicare) | ||
|---|---|---|
| FICA Tax | 2018 | 2017 |
| Social Security Tax Rate: Employers | 6.2% | 6.2% |
| Social Security Tax Rate: Employees | 6.2% | 6.2% |
| Social Security Tax Rate: Self-Employed | 15.3% | 15.3% |
| Maximum Taxable Earnings | $128,400 | $127,200 |
| Medicare Base Salary | Unlimited | Unlimited |
| Medicare Tax Rate | 1.5% | 1.5% |
| Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers) | 0.9% | 0.9% |
| Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers) | 3.8% | 3.8% |
| Education Credits & Deductions | ||
|---|---|---|
| Credit / Deduction | 2018 | 2017 |
| American Opportunity Credit (Hope) | 2500 | 2500 |
| Lifetime Learning Credit | 2000 | 2000 |
| Student Loan Interest Deduction | 2500 | 2500 |
| Coverdell Education Savings Contribution | 2000 | 2000 |
| Miscellaneous Provisions | |||
|---|---|---|---|
| 2018 | 2017 | ||
| N/A – No longer exists | N/A | Personal Exemption | $4,050 |
| Business expensing limit: Cap on equipment purchases | $2,500,000 | Business expensing limit: Cap on equipment purchases | $2,030,000 |
| Business expensing limit: New and Used Equipment and Software | $1,000,000 | Business expensing limit: New and Used Equipment and Software | $510,000 |
| Prior-year safe harbor for estimated taxes of higher-income | 110% of your 2018 tax liability | Prior-year safe harbor for estimated taxes of higher-income | 110% of your 2017 tax liability |
| Standard mileage rate for business driving | 54.5 cents | Standard mileage rate for business driving | 53.5 cents |
| Standard mileage rate for medical/moving driving | 18 cents | Standard mileage rate for medical/moving driving | 17 cents |
| Standard mileage rate for charitable driving | 14 cents | Standard mileage rate for charitable driving | 14 cents |
| Child Tax Credit | $2,000 | Child Tax Credit | $1,000 |
| Unearned income maximum for children under 19 before kiddie tax applies | $1,050 | Unearned income maximum for children under 19 before kiddie tax applies | $1,050 |
| Maximum capital gains tax rate for taxpayers with income up to $51,700 for single filers, $77,200 for married filing jointly | 0% | Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket | 0% |
| Maximum capital gains tax rate for taxpayers with income above $51,700 for single filers, $77,200 for married filing jointly | 15% | Maximum capital gains tax rate for taxpayers above the 15% bracket but below the 39.6% bracket | 15% |
| Maximum capital gains tax rate for taxpayers with income above $425,800 for single filers, $479,000 for married filing jointly | 20% | Maximum capital gains tax rate for taxpayers in the 39.6% bracket | 20% |
| Capital gains tax rate for unrecaptured Sec. 1250 gains | 25% | Capital gains tax rate for unrecaptured Sec. 1250 gains | 25% |
| Capital gains tax rate on collectibles | 28% | Capital gains tax rate on collectibles | 28% |
| Maximum contribution for Traditional/Roth IRA | $5,500 if under age 50 $6,500 if 50 or older | Maximum contribution for Traditional/Roth IRA | $5,500 if under age 50 $6,500 if 50 or older |
| Maximum employee contribution to SIMPLE IRA | $12,500 if under age 50 $15,500 if 50 or older | Maximum employee contribution to SIMPLE IRA | $12,500 if under age 50 $15,500 if 50 or older |
| Maximum Contribution to SEP IRA | 25% of eligible compensation up to $55,000 | Maximum Contribution to SEP IRA | 25% of eligible compensation up to $54,000 |
| 401(k) maximum employee contribution limit | $18,500 if under age 50 $24,500 if 50 or older | 401(k) maximum employee contribution limit | $18,000 if under age 50 $24,000 if 50 or older |
| Estate tax exemption | $11,200,000 | Estate tax exemption | $5,490,000 |
| Annual Exclusion for Gifts | $15,000 | Annual Exclusion for Gifts | $14,000 |
These articles are intended to provide general resources for the tax and accounting needs of small businesses and individuals. Service2Client LLC is the author, but is not engaged in rendering specific legal, accounting, financial or professional advice. Service2Client LLC makes no representation that the recommendations of Service2Client LLC will achieve any result. The NSAD has not reviewed any of the Service2Client LLC content. Readers are encouraged to contact their CPA regarding the topics in these articles.
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