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Various Adjustments of Tax Numbers for 2018
Filing statuses: S=single, HH=head of household, MFS=married filing separately, MFJ=married filing joint, QW=qualifying widow(er);
Most references to AGI mean modified adjusted gross income for that deduction.
The Tax Cut and Jobs Act (TCJA) is in effect for 2018 through 2025, unless modified or extended in the future. Changes to various tax deductions are indicated below.
| Maximum Salary Deferrals: | $18,500 for 401(k), 403(b), 501(c), 457 plans; / $12,500 for SIMPLE 'catch-up'contribution limits for age 50+: (additional $6,000 / $3,000 for SIMPLE) $2,650 for Health FSA |
| Self-Employed: | SEP-IRA: $55,000 |
| Traditional IRA Contributions Limit: | $5,500 (up to amount of earned income for the year)
additional catch-up $1,000 for age 50+ |
Traditional IRA Deduction AGI Phaseout: (when also eligible to contribute to a retirement plan at work) |
MFJ, QW: $101,000-$121,000 S, HH: $63,000-$73,000 MFS: 0-$10,000 (living apart all year, see S) And when taxpayer not plan-eligible, but spouse covered by a plan, MFJ: $189,000-$199,000 |
Roth IRA Contributions AGI Phaseout: |
MFJ: $189,000-$199,000 S, HH: $120,000-$135,000 MFS: 0-$10,000 (living apart all year, see S) |
Retirement Savings Credit ('Saver's Credit') AGI phaseout: |
MFJ: $63,000 HH: $47,250 S, QW, MFS: $31,500 |
| Social Security: |
Before retirement age, can earn up to $15,720 without repaying benefits. Benefits reduced $1 for each $2 earned over limit Preceding months in year of reaching retirement age: $41,880. Benefits reduced $1 for each $3 earned over limit On/after retirement month, no limit. Earnings subject to SS tax: Employee: $128,400 (maximum $7,961 w/h) Household help: cash wages over $2,000 |
| Health Savings Account: | Maximum HSA contribution $3,450 individual coverage / $6,900 family coverage.
additional catch-up $1,000 for age 55+ |
| Child Tax Credit: | Increased to $2,000, and phaseout starts at a higher AGI level of 400K MFJ, 200K others. (TCJA) |
| Educational Credit: (MFS ineligible) | American Opportunity Credit (aka Hope Credit): 100% of first $2,000, 25% of next $2,000 tuition (all 4 years college) AGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ) Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+) AGI phaseout: $56,000-$66,000 (individual); $112,000-$132,000 (MFJ) |
| Student Loan Interest: (MFS ineligible) | Up to $2,500 AGI phaseout: $65,000-$80,000 (individual); $135,000-$165,000 (MFJ) |
Earned Income Credit: (MFS ineligible) |
Earned income starting at: $6,780 (no child), $10,180 (one child), $14,290 (two/more children) Earned income/modified AGI phaseout range: (All phaseout ranges increased by $5,690 if MFJ) One qualifying child: $18,660-$40,320 (maximum credit $3,461) Two qualifying children: $18,660-$45,802 (maximum credit $5,716) Three/more qualifying children: $18,660-$49,184 (maximum credit $6,431) Qualifying without child: $8,340-$15,010 (maximum credit $519) (disqualified if investment income over $3,500, any filing status) |
| Adoption Credit: | Up to $13,810 (phaseout $207,140-$247,140) |
| 'Kiddie Tax' | Child under 18/full-time student under 24, with interest/dividends over $2,100 |
| Standard Mileage Rates: |
Business: 54.5¢ (Depreciation adjustment: 25¢) Charity: 14¢ Medical: 18¢ Employee business expenses and nonmilitary moving expenses are eliminated (TCJA). |
| Itemized Deduction phaseout: | This has been eliminated. And with no personal exemptions, that phaseout also eliminated. (TCJA). |
| Section 179 Expense: | per tangible personal property: $25,000; overall total $510,000 phaseout starts at $2,030,000 placed in service |
| Depreciation Limit (with/without bonus depreciation): | Passenger auto limit, first year business: $10,000 / 11,160; Trucks, vans: $3,560 / $11,560
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| Capital Gain Tax: | Long-term (holding over a year): 20% for the taxpayers in the highest 39.6% bracket 15% for taxpayers in other brackets, 0% for those in the 15%/10% brackets |
| Gift Tax Exclusion/ Estate Exclusion: | $15,000 / $11,180,000 |
| Foreign Income Exclusion: | $103,900 |
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See the original 'NEW TAX LAWS' menu for historical changes. |
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| 2018 Standard Deductions | New for 2018 |
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