2018 Tax Cheat Sheet


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Nicholas Aiola, CPA - 2018 Tax Cheat Sheet - 2017-2018

Happy New Year!

 

Thanks to the new tax law, 2018 brings more changes than just the typical adjustments for inflation. Let’s take a look…

 

Tax Rates

Single:

Taxable Income Tax Rate
$0 to $9,525 10%
$9,526 to $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 to $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 to $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 to $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 to $500,000 $45,689.50 plus 35% of the amount over $200,000
$500,001 or more $150,689.50 plus 37% of the amount over $500,000

 

Married Filing Jointly or Qualifying Widow(er):

Taxable Income Tax Rate
$0 to $19,050 10%
$19,051 to $77,400 $1,905 plus 12% of the amount over $19,050
$77,401 to $165,000 $8,907 plus 22% of the amount over $77,400
$165,001 to $315,000 $28,179 plus 24% of the amount over $165,000
$315,001 to $400,000 $64,179 plus 32% of the amount over $315,000
$400,001 to $600,000 $91,379 plus 35% of the amount over $400,000
$600,001 or more $161,379 plus 37% of the amount over $600,000


Married Filing Separately:

Taxable Income Tax Rate
$0 to $9,525 10%
$9,526 to $38,700 $952.50 plus 12% of the amount over $9,525
$38,701 to $82,500 $4,453.50 plus 22% of the amount over $38,700
$82,501 to $157,500 $14,089.50 plus 24% of the amount over $82,500
$157,501 to $200,000 $32,089.50 plus 32% of the amount over $157,500
$200,001 to $300,000 $45,689.50 plus 35% of the amount over $200,000
$300,001 or more $80,689.50 plus 37% of the amount over $500,000

 

Head of Household:

Taxable Income Tax Rate
$0 to $13,600 10%
$13,601 to $51,800 $1,360 plus 12% of the amount over $13,600
$51,801 to $82,500 $5,944 plus 22% of the amount over $51,800
$82,501 to $157,500 $12,698 plus 24% of the amount over $82,500
$157,501 to $200,000 $30,698 plus 32% of the amount over $157,500
$200,001 to $500,000 $44,298 plus 35% of the amount over $200,000
$500,001 or more $149,298 plus 37% of the amount over $500,000

 

Estates & Trusts:

Taxable Income Tax Rate
$0 to $2,550 10%
$2,551 to $9,150 $255 plus 24% of the amount over $2,550
$9,151 to $12,500 $1,839 plus 35% of the amount over $9,150
$12,501 or more $3,011.50 plus 37% of the amount over $12,500

 

Corporations:

Taxable Income Tax Rate
$1 or more 21%

 

Standard Deduction

Single $12,000*
Married Filing Jointly $24,000**
Head of Household $18,000*

*Add $1,600 if blind or over age 65

**Add $1,300 if blind or over age 65

 

Note – There is no longer a personal exemption (was $4,050 per person in 2017).

 

Deductions

Itemized:

Itemized Deductions Phase-Out Itemized deductions are no longer phased out; if you itemize, the deductions will be allowed in full
Medical Excess medical expenses over 7.5% of your AGI is deductible
State & Local Taxes (SALT), Sales/State Income Taxes, and Property Taxes Deductible up to $10,000 (in the aggregate)
Mortgage Interest Deductible if mortgage amount is $750,000 or less (begins to phase out for mortgages over $750,000); interest on home equity loans is no longer deductible
Miscellaneous Itemized Deductions No longer allowed

 

Other:

Pass-through entity deduction 20% (subject to income, limitations, thresholds, exclusions, and other factors)
Mileage Business mileage – 54.5 cents/mile; medical/moving mileage 18 cents/mile; charitable mileage – 14 cents/mile
Student Loan Interest Deductible up to $2,500*
Moving Expenses No longer deductible
Teacher (Educator) Expenses $250
Maximum Section 179 deduction $1,000,000
Bonus Depreciation 100% (applies to property placed in service after 9/27/17)

*The student loan interest deduction begins to phase out at the following MAGI levels: married filing jointly – $135,000-$165,000; all others – $65,000-$80,000

 

Credits

American Opportunity Tax Credit Up to $2,500
Child Tax Credit Up to $2,000 (with $1,400 being refundable)
Retirement Tax Credit Income Limit Single – $31,500; Married Filing Jointly – $63,000; Head of Household – $47,250

 

IRA & Pension Plan Limits

IRA Contribution Limit (Roth & Traditional) Under age 50 – $5,500; age 50 and older – $6,500
Phase-Out for Deducting Traditional IRA Contributions AGI levels: Single & Head of Household – $63,000-$73,000; Married Filing Jointly – $189,000-$199,000; Married Filing Separately – $0-$10,000
Phase-Out for Contributing to a Roth IRA MAGI levels: Single & Head of Household – $120,000-$135,000; Married Filing Jointly – $101,000-$121,000; Married Filing Separately – $0-$10,000
401(k), 403(b), 457, and SARSEP Elective Deferral Limits Under age 50 – $18,000; age 50 and older – $24,500
SEP Contribution Up to 25% of compensation (limited to $55,000)
SIMPLE Elective Deferral Limits Under age 50 – $12,500; age 50 and older – $15,500
Defined Contribution Plan – Maximum Annual Addition $55,000
Defined Benefit Plan – Maximum Annual Benefit $220,000
Max Annual Compensation Taken Into Account When Determining Contributions $275,000

 

AMT

Single & Head of Household Exemption – $73,000; Phase-out – $500,000
Married Filing Jointly Exemption – $109,400; Phase-out – $1,000,000
Estates & Trusts Exemption – $24,600; Phase-out – $82,050
Corporations Corporations are no longer subject to the AMT

 

Estate & Gift Tax

Annual Gift Exclusion (per recipient) $15,000 (doubled for married couples)
Annual Gift Exclusion to Noncitizen Spouse $152,000
Maximum Estate & Gift Tax Rate 40%
Lifetime Estate/Gift Exemption Amount $11,200,000 (doubled for married couples)

 

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Nick Aiola is a CPA located in New York, NY. Nick provides the highest quality of tax and accounting services to a wide range of clients, including individuals, businesses, and fiduciary entities.

 

Phone – (646) 397-9537

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