2018 Numbers to Know

The Tax Cuts and Jobs Act of 2017 produced some of the most significant changes to the federal tax code in decades. We've aggregated for you some of the most pertinent numbers and tax limits for 2018. (Note: these changes affect income earned in 2018 and tax returns filed in early 2019).

Some of the Significant Changes for 2018:

  • Reduced Individual Tax Rates for Most Income Levels
    - Individual tax payers still fall into one of seven brackets, but those income levels for the brackets      have been adjusted and most individual tax rates have been reduced. The seven brackets are           10%, 12% (down 3%), 22% (down 3%), 24% (down 4%), 32% (down 1%), 35%, and 37% (down     2.6%)

  • Reduced Corporate Tax Rates
    -
    From 35% to 21%

  • Elimination of the Personal Exemption
    - The personal exemption that allowed most households to reduce their taxable income by $4,050       per person has been eliminated.
  • Increased Standard Deductions
    - Single filers: $12,000 (an increase of $5,500)
    - Married couples filing jointly: $24,000 (an increase of $11,000)
    - Head of Household filers: $18,000 (an increase of $8,450)

  • Local and State Tax Deductions Capped
    - The deduction for local and state taxes is now capped at a combined $10,000 (for income, sales,     and property taxes).

  • Child Tax Credit Increased
    - From $1,000 to $2,000

Qualified Retirement Plan Limits

Limit 2017 2018 Change
401(k) Elective Deferrals $18,000 $18,500 $500 Increase
 403(b) and 457 Elective Deferrals $18,000   $18,500 $500 Increase
 401(k) Catch-up Contributions $6,000  $6,000  No Change
 403(b) and 457 Catch-up Contributions $6,000  $6,000  No Change
 Annual Defined Contributions (401(k) plans, profit sharing plans, money purchase plans)  $54,000  $55,000 $1,000 Increase
 Annual Defined Benefit (Defined Benefit Plans) $215,000  $220,000  $5,000 Increase
 Annual Compensation  $270,000 $275,000  $5,000 Increase
Highly Compensated Employees   $120,000 $120,000  No Change
Social Security Taxable Wage Base   $127,200 $128,400  $1,200 Increase
SIMPLE Contribution  $12,500  $12,500  No Change
SIMPLE Catch-up Contributions   $3,000 $3,000  No Change 
SEP Contribution  $54,000  $55,000  $1,000 Increase 

 

Individual Retirement Account

IRA and Roth IRA Contributions  
Under Age 50 $5,500
50 and Over $6,500

 

Income Tax Rates

Marginal Tax Rate Single Married, Filing Jointly Married, Filing Separately Head of Household  Estates and Trusts
10%  $0 - $9,525 $0 - $19,050   $0 - $9,525 $0 - $13,600  $0 - $2,550 
12% $9,526 - $38,700   $19,051 - $77,400 $9,526 - $38,700  $13,601 - $51,800   N/A
22% $38,701 - $82,500  $77,401 - $165,000  $38,701 - $82,500  $51,801 - $82,500   N/A
24% $82,501 - $157,501  $165,001 - $315,000  $82,501 - $157,500  $82,501 - $157,500   $2,551 - $9,150
32%  $157,501 - $200,000 $315,001 - $400,000 

$157,501 - $200,000 

 $157,501 - $200,000  N/A
35% $200,201 - $500,000  $400,001 - $600,000   $200,001 - $300,000 $200,001 - $500,000   $9,151 - $12,500
37%  $500,001 + $600,001 +  $300,001 +   $500,001 + $12,501 + 

 

Long-Term Capital Gains & Qualified Dividends

Tax Rate Single Married, Filing Jointly Married, Filing Separately Head of Household
0% Up to $38,600 Up to $77,200 Up to $38,600 Up to $51,700
15% $38,600 - $425,800 $77,200 - $479,000 $38,600 - $239,500 $51,700 - $452,400
20% Over $425,800 $479,000 Over $239,500 $452,400



HSA Limits

Type of Limit 2017 2018 Change
HSA Contribution Limit

Self-only
Family

 $3,400
$6,750
$3,450
$6,850 
Up $50
Up $100 
HSA Catch-up Contributions Age 55 or Older $1,000   $1,000 No Change 
 HDHP Minimum Deductible Self-only
Family
$1,300
$2,600
 $1,350
$2,700
Up $50
Up $100 
HDHP Maximum Out-of-Pocket Self-only
Family
$6,550
$13,100
$6,650
$13,300
Up $100
Up $200

 

 Estate Tax

Transfer Tax Rate (Maximum) 40%
Estate Tax Exemption $10,000,000
Gift Tax Exemption $10,000,000
Generation-Skipping Transfer Exemption $10,000,000

 

Education

529 Plan Contributions - per Individual $15,000 per Year Before a Gift Tax
529 Plan Contributions - per Couple $30,000 per Year Before a Gift Tax
Accelerate 5 Years of Gifting into 1 Year per Individual $75,000
Per Couple $150,000

 

Student Loan Interest

Deduction Limit $2,000

 

This blog post does not constitute tax, legal, or accounting advice. Its intended purpose is for educational use only.

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