Even though the official numbers have not yet been published by the IRS, we’ve projected many of the key tax figures for 2018. Although significant tax reforms are being discussed by lawmakers, these numbers assume no change in the current tax laws on which the numbers are based.
Exemptions |
|
2017 |
Projected for 2018 |
Personal and dependency |
$4,050 |
$4,150 |
Phaseout threshold (applies to itemized deductions as well) |
Married filing jointly |
$313,800 |
$320,000 |
Head of household |
$287,650 |
$293,350 |
Single |
$261,500 |
$266,700 |
Married filing separately |
$156,900 |
$160,000 |
Standard deduction |
|
2017 |
Projected for 2018 |
Married filing jointly |
$12,700 |
$13,000 |
Head of household |
$9,350 |
$9,550 |
Single |
$6,350 |
$6,500 |
Married filing separately |
$6,350 |
$6,500 |
Standard deduction for dependent |
Greater of $1,050 or $350 + earned income |
Greater of $1,050 or $350 + earned income |
Additional standard deduction for blind or aged (65 or older) |
Single/ Head of household |
$1,550 |
$1,600 |
All others |
$1,250 |
$1,300 |
Top income tax bracket (39.6%, 20% for long-term capital gains and qualified dividends) |
|
2017 |
Projected for 2018 |
Married filing jointly |
$470,700 |
$480,050 |
Head of household |
$444,550 |
$453,350 |
Single |
$418,400 |
$426,700 |
Married filing separately |
$235,350 |
$240,025 |
Alternative minimum tax (AMT) |
|
2017 |
Projected for 2018 |
Maximum AMT exemption amount |
Married filing jointly |
$84,500 |
$86,200 |
Single/ Head of household |
$54,300 |
$55,400 |
Married filing separately |
$42,250 |
$43,100 |
Exemption phaseout threshold |
Married filing jointly |
$160,900 |
$164,100 |
Single/ Head of household |
$120,700 |
$123,100 |
Married filing separately |
$80,450 |
$82,050 |
26% on AMTI* up to amount, 28% on AMTI above amount |
Married filing separately |
$93,900 |
$95,750 |
All others |
$187,800 |
$191,500 |
*Alternative minimum taxable income
Kiddie tax: child’s unearned income |
|
2017 |
Projected for 2018 |
Above this amount taxed at parent’s tax rate |
$2,100 |
$2,100 |
IRAs |
|
2017 |
Projected for 2018 |
Contribution limits |
Traditional and Roth IRAs (combined) |
$5,500 ($6,500 if age 50 or older) |
$5,500 ($6,500 if age 50 or older) |
Roth IRA income phaseout range (contributions) |
Single/ Head of household |
$118,000 – $133,000 |
$120,000 – $135,000 |
Married filing jointly |
$186,000 – $196,000 |
$189,000 – $199,000 |
Married filing separately |
$0 – $10,000 |
$0 – $10,000 |
Traditional IRA income phaseout range (deductibility) |
1. Covered by an employer-sponsored plan and filing as: |
Single/ Head of household |
$62,000 – $72,000 |
$63,000 – $73,000 |
Married filing jointly |
$99,000 – $119,000 |
$101,000 – $121,000 |
Married filing separately |
$0 – $10,000 |
$0 – $10,000 |
2. Not covered by plan but filing joint return with covered spouse |
$186,000 – $196,000 |
$189,000 – $199,000 |
Estate planning |
|
2017 |
Projected for 2018 |
Top gift, estate, and generation-skipping transfer (GST) tax rate |
40% |
40% |
Annual gift tax exclusion |
$14,000 |
$15,000 |
Noncitizen spouse annual gift tax exclusion |
$149,000 |
$152,000 |
Gift tax and estate tax applicable exclusion amount |
$5,490,0001 + DSUEA2 |
$5,600,0001 + DSUEA2 |
GST tax exemption |
$5,490,000 |
$5,600,000 |
1Basic exclusion amount
2Deceased spousal unused exclusion amount