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2019 income tax tables Representing a major tax-overhaul, the bill makes significant changes to the federal income tax brackets and deductions. Let's look at both, starting with the 2019 income tax brackets.

2018 Income Tax Brackets
Rate Individuals Married Filing Jointly
10% Up to $9,525 Up to $19,050
12% $9,526 to $38,700 $19,051 to $77,400
 22% 38,701 to $82,500 $77,401 to $165,000
24% $82,501 to $157,500 $165,001 to $315,000
32% $157,501 to $200,000 $315,001 to $400,000
35% $200,001 to $500,000 $400,001 to $600,000
37% over $500,000 over $600,000
The number of brackets remained the same at seven. Rates overall, however, have come down. For individuals, these lower rates are scheduled to expire in 2025 unless Congress extends them.
The top rate will fall from 39.6% to 37%. The bottom rate remains at 10%, but it covers twice the amount of income compared to the previous brackets.
2018 Standard Deduction and Exemptions
The new tax rules also make big changes to the standard deduction and exemptions.
The standard deduction in 2018 as the law currently exists is $13,000 for a couple filing jointly. That number will jump to $24,000. For single filers it jumps from $6,500 to $12,000.
The personal exemption, currently at $4,150 for 2018, would be repealed. That's the bad news. The good news the child tax credit gets a big boost.
It currently sits at $1,000 and starts to phase out at $110,000 in income for couples and $75,000 in income for everybody else. Under the new law, the credit doubles to $2,000, $1,400 of which is a refundable tax credit. Further, it doesn't start to phase out until $400,000 in income for couples and $200,000 for singles.
2018 Itemized Deductions
Several key changes are coming for itemized deductions. State and local taxes can still be itemized, but they are now capped at $10,000. This concession attempts to address the uproar from states that levy big taxes on their citizens.
Interest on mortgages for primary and secondary residences is still deductible. The limit, however, has come down from loans up to $1 million to loans up to $750,000.
Medical expenses in 2017 and 2018 are deductible to the extent the exceed 7.5% of income (down from 10%).
Preparing Your Tax Returns
This end-of-year change to the 2018 tax brackets shouldn't affect 2017 returns. You can find a comparison of the best tax prep programs here.
The states that have legalized marijuana use are already amassing huge tax revenues from its sales. Click to learn how you can cash-in from this enormous boom.
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Rob Berger is the Deputy Editor of Forbes Money Advisor and founder of Doughroller.net and allcards.com. He is the author of the upcoming book, Retire Before Mom and Dad.

2019 income tax tables

2019 income tax tables Representing a major tax-overhaul, the bill makes significant changes to the federal income tax brackets and deductions. Let's look at both, starting with the 2019 income tax brackets.

2018 Income Tax Brackets
Rate Individuals Married Filing Jointly
10% Up to $9,525 Up to $19,050
12% $9,526 to $38,700 $19,051 to $77,400
 22% 38,701 to $82,500 $77,401 to $165,000
24% $82,501 to $157,500 $165,001 to $315,000
32% $157,501 to $200,000 $315,001 to $400,000
35% $200,001 to $500,000 $400,001 to $600,000
37% over $500,000 over $600,000
The number of brackets remained the same at seven. Rates overall, however, have come down. For individuals, these lower rates are scheduled to expire in 2025 unless Congress extends them.
The top rate will fall from 39.6% to 37%. The bottom rate remains at 10%, but it covers twice the amount of income compared to the previous brackets.
2018 Standard Deduction and Exemptions
The new tax rules also make big changes to the standard deduction and exemptions.
The standard deduction in 2018 as the law currently exists is $13,000 for a couple filing jointly. That number will jump to $24,000. For single filers it jumps from $6,500 to $12,000.
The personal exemption, currently at $4,150 for 2018, would be repealed. That's the bad news. The good news the child tax credit gets a big boost.
It currently sits at $1,000 and starts to phase out at $110,000 in income for couples and $75,000 in income for everybody else. Under the new law, the credit doubles to $2,000, $1,400 of which is a refundable tax credit. Further, it doesn't start to phase out until $400,000 in income for couples and $200,000 for singles.
2018 Itemized Deductions
Several key changes are coming for itemized deductions. State and local taxes can still be itemized, but they are now capped at $10,000. This concession attempts to address the uproar from states that levy big taxes on their citizens.
Interest on mortgages for primary and secondary residences is still deductible. The limit, however, has come down from loans up to $1 million to loans up to $750,000.
Medical expenses in 2017 and 2018 are deductible to the extent the exceed 7.5% of income (down from 10%).
Preparing Your Tax Returns
This end-of-year change to the 2018 tax brackets shouldn't affect 2017 returns. You can find a comparison of the best tax prep programs here.
The states that have legalized marijuana use are already amassing huge tax revenues from its sales. Click to learn how you can cash-in from this enormous boom.
------
Rob Berger is the Deputy Editor of Forbes Money Advisor and founder of Doughroller.net and allcards.com. He is the author of the upcoming book, Retire Before Mom and Dad.

1 comment:

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