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Tis The Season - Income Tax Key Numbers 2018

| December 11, 2018
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Tis the season! It’s time to start looking at tax planning numbers in preparation for end-of-year and the coming tax season. This snapshot list includes just key income tax planning numbers.

 

Alternative Minimum Tax (AMT)

2017

2018

Maximum AMT exemption amount

$84,500 (MFJ), $54,300 (Single/ HOH), $42,250 (MFS)

$109,400 (MFJ), $70,300 (Single/HOH), $54,700 (MFS)

Exemption phaseout threshold

$160,900 (MFJ), $120,700 (Single/HOH), $80,450 (MFS)

$1,000,000 (MFJ) $500,000 (Single/HOH/MFS)

26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount)

$187,800 (MFJ/Single/HOH), $93,900 (MFS)

$191,100 (MFJ/Single/HOH), $95,550 (MFS)

 

Exemptions/Itemized Deductions

2017

2018

Personal & dependency exemptions

$4,050

No personal exemption

Phaseout threshold for exemptions and itemized deductions

$313,800 (MFJ), $287,650 (HOH), $261,500 (Single), $156,900 (MFS)

Phaseout does not apply

 

Standard Deduction

2017

2018

Standard deduction amount

$12,700 (MFJ), $9,350 (HOH), $6,350 (Single), $6,350 (MFS)

$24,000 (MFJ), $18,000 (HOH), $12,000 (Single),

$12,000 (MFS)

Standard deduction for dependent

Greater of $1,050 OR

$350 + earned income

Greater of $1,050 OR

$350 + earned income

Additional deduction for aged/blind

$1,550 (Single/HOH),

$1,250 (MFJ/MFS)

$1,600 (Single/HOH),

$1,300 (MFJ/MFS)

 

Top Tax Brackets

2017

2018

Single

39.6% of taxable income exceeding $418,400 + $121,505.25

37% of taxable income exceeding $500,000 + $150,689.50

MFJ (Married, Filing Jointly)

39.6% of taxable income exceeding $470,700 + $131,628

37% of taxable income exceeding $600,000 + $161,379

MFS (Married, Filing Separately)

39.6% of taxable income exceeding $235,350 + $65,814

37% of taxable income exceeding $300,000 + $80,689.50

HOH (Head of Household)

39.6% of taxable income exceeding $444,550 + $126,950

37% of taxable income exceeding $500,000 + $149,298

 

Top Capital Gain Tax Rate (20%) Thresholds

2017

2018

Single

$418,400

$425,800

MFJ

$470,700

$479,000

MFS

$235,350

$239,500

HOH

$444,550

$452,400

 

Unearned Income Medicare Contribution Tax (Net Investment Income Tax)

2017

2018

Amount of tax

3.80%

3.80%

Applies to less of (a) net investment income or (b) modified adjusted gross income exceeding:

 

 

Individuals

$200,000

$200,000

Married filing jointly

$250,000

$250,000

Married filing separately

$125,000

$125,000

 

Standard Mileage Rates

2017

2018

Use of auto for business purposes (cents per mile)

$0.535

$0.545

Uses of auto for medical purposes (cents per mile)

$0.17

$0.18

Use of auto for moving purposes

(cents per mile)

$0.17

$0.18

Use of auto for charitable purposes (cents per mile)

$0.14

$0.14

 

This material was prepared by Forefield/Broadridge.

Hollander & Lone LLC and LPL Financial do not provide legal and/or tax advice or services. Please consult your legal and tax advisor regarding your specific situation. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

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