2018 Taxes Quick Sheet: Income tax brackets and deductions
While 2017 tax season is underway, here are the changes that passed for 2018 income tax rates and brackets.
2018 standard deductions went up: $12,000 for singles (up from $6,350 for 2017), $24,000 for joint-filing married couples (up from $12,700), and $18,000 for heads of households (up from $9,350).
Several deductions have been removed or reduced. Personal and dependent exemption deductions have been eliminated, except for the elderly and blind. Moving expenses and most miscellaneous itemized expenses can no longer be deducted. Foreign real property taxes cannot be deducted. Itemized personal casualty and theft losses cannot be deducted, for those that occur in federally-declared disasters. Alimony payments in divorce agreements entered into after 12/31/18 can no longer be deducted starting in 2019 (recipients of nondeductible payments won’t have to include them as taxable income). There is a limit on the deductions you can have on state and local income and property taxes, a combined total of $10,000 or $5,000 if you use married filing separate status.
However, certain deductions and credits have been increased. The maximum child credit has been increased to $2,000 per qualifying child, and up to $1,400 is refundable if you are due a refund on your taxes. The unified federal gift and estate tax exemption will almost double to about $11.2 million or $22.4 million for a married couple, which is great for the wealthy and generous. And surprisingly, medical expense deductions have been expanded to cover expenses over 7.5% of your adjusted gross income (AGI) for this tax season as well as 2018 taxes. The old deduction was over 10% of AGI.
Originally published at sanuber.wordpress.com on January 8, 2018.
