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2018 IRS Tax brackets and tax rates for individuals and business.

The Tax Cuts and Jobs Act of 2017, otherwise knows as Tax Reform reduced the amount of tax brackets for individuals and lowered the rates. Tax reform reduced the corporate tax rates to one flat rate. Find out how much you can expect to save with the new federal tax table

Federal Individual Income Tax Rates

2018-2025 Tax Brackets for Single Filing Individuals
If taxable income is: Then the income tax equals:
Not over $9,525 10% of taxable income
Over $9,525 but not over $82,500 $952.50 plus 12% of the excess over $9,525
Over $38,700 but not over $157,500 $4,453.50 plus 22% of the excess over $82,500
Over $157,500 but not over $200,000 $32,089.50 plus 32% of the excess over $157,500
Over $200,000 but not over $500,000 $45,689.50 plus 35% of the excess over $200,000
Over $500,000 $150,689.50 plus 37% of the excess over $500,000
2018-2025 tax brackets for Married Filing Joint and Surviving Spouses
If taxable income is: Then Income Tax Equals:
Not over $19,050 10% of taxable income
Over $19,050 but not over $77,400 $1,905 plus 12% of the excess over $19,050
Over $77,400 but not over $165,000 $8,907 plus 22% of the excess over $77,400
Over $165,000 but not over $315,000 $28,179 plus 24% of the excess over $165,000
Over $315,000 but not over  $400,000 $64,179 plus 32% of the excess over $315,000
Over $400,000 but not over $600,000 $91,379 plus 35% of the excess over $400,000
Over $600,000 $161,379 plus 37% of the excess over $600,000
2018-2025 tax brackets for Married Filing Separate Returns
If Taxable Income Is: Then Income Tax Equals:
Not over $9,525 10% of taxable income
Over $9,525 but not over $38,700 $952.50 plus 12% of the excess over $38,700
Over $38,700 but not over $82,500 $4,453.50 plus 22% of the excess over $82,500
Over $82,500 but not over $157,500 $14,089.50 plus 34% of the excess over $157,500
Over $157,500 but not over $200,000 $32,089.50 plus 32% of the excess over $200,000
Over $200,000 but not over $300,000 $45,689.50 plus 35% of the excess over $200,000
Over $300,000 $80,689.50 plus 37% of the excess over $300,000
2018-2025 tax brackets for Heads of Households
If Taxable Income is: Then Income Tax Equals:
Not over $13,600 10% of the taxable income
Over $13,600 but not over $51,800 $1,360 plus 12% of the excess over $13,600
Over $51,800 but not over $82,500 $5,944 plus 22% of the excess over $51,800
Over $82,500 but not over $157,500 $12,698 plus 24% of the excess over $82,500
)ver $157,500 but not over $200,000 $30,698 plus 32% of the excess over $157,500
Over $200,000 but not over $500,000 $44,298 plus 35% of the excess over $200,000
Over $500,000 $149,298 plus 37% of the excess over $500,000

NEW IRS LAWS FOR 2018:

Click below link:

Tax Relief for Individuals and Families

Increased standard deduction:
The new tax law nearly doubles the standard deduction amount. Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,000 for 2018 taxes (the ones you file in 2019).

Married couples filing jointly see an increase from $12,700 to $24,000. These increases mean that fewer people will have to itemize. Today, roughly 30% of taxpayers itemize. Under the new law, this percentage is expected to decrease.

Increased Child Tax Credit:

For, families with children the Child Tax Credit is doubled from $1,000 per child to $2,000. In addition, the amount that is refundable grows from $1,100 to $1,400. The bill also adds a new, non-refundable credit of $500 for dependents other than children. Finally, it raises the income threshold at which these benefits phase out from $110,000 for a married couple to $400,000.

Eliminations or Reductions in Deductions

Personal and dependent exemptions:

The bill eliminates the personal and dependent exemptions which were $4,050 for 2017 and increased to $4,150 in 2018.

State and local taxes/Home mortgages:

The bill limits the amount of state and local property, income, and sales taxes that can be deducted to $10,000. In the past, these taxes have generally been fully tax deductible.

The bill also caps the amount of mortgage indebtedness on new home purchases on which interest can be deducted at $750,000 down from $1,000,000 in current law.

Health care:

The bill eliminates the tax penalty for not having health insurance after December 31, 2018. It also temporarily lowers the floor above which out-of-pocket medical expenses can be deducted from the current law floor of 10% to 7.5% for 2017 and 2018

So for 2018, you can deduct medical expenses that are more than 7.5% of your adjusted gross income as opposed to the higher 10%.

Self-employed (contractors, freelancers, sole proprietors) and small businesses:

The bill has a myriad of changes for business. The biggest includes a reduction in the top corporate rate to 21%, a new 20% deduction for incomes from certain type of “pass-through” entities (partnerships, S Corps, sole proprietorships), limits on expensing of interest from borrowing, almost doubling of the amount small businesses can expense from the 2017 Section 179 amount of $510,000 to $1,000,000, and eliminates the corporate alternative minimum tax (AMT).

Fornaris Accounting Has You Covered

Don’t worry about memorizing these tax changes the majority of which are for 2018 taxes which you file in 2019. Fornaris Accounting has you covered and will be up to date with the latest tax laws.

If you have more questions while doing your taxes, you can contact Fornaris Accounting.
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