• Sharing the Projected Tax Rates for 2018

    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.

    2017Projected 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
    Married filing separately$156,900$160,000
    Standard deduction
    2017Projected for 2018
    Married filing jointly$12,700$13,000
    Head of household$9,350$9,550
    Married filing separately$6,350$6,500
    Standard deduction for dependentGreater of $1,050 or $350 + earned incomeGreater 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)
    2017Projected for 2018
    Married filing jointly$470,700$480,050
    Head of household$444,550$453,350
    Married filing separately$235,350$240,025
    Alternative minimum tax (AMT)
    2017Projected 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
    2017Projected for 2018
    Above this amount taxed at parent’s tax rate$2,100$2,100
    2017Projected 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
    2017Projected for 2018
    Top gift, estate, and generation-skipping transfer (GST) tax rate40%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