2018
| NOTABLE ITEMIZED DEDUCTIONS | |
| Deductible | |
| Mortgage interest up to $750,000 of indebtedness on 1 or 2 residences for mortgages taken out after 12/15/2017 | |
| Points on home mortgages | |
| Business interest | |
| Investment interest up to net investment income | |
| Either state or local income taxes, or state and local sales taxes – plus state and local real property taxes, and personal property taxes. Combined deduction for state property and income taxes is limited to $10,000 | |
| Medical and dental expenses to the extent that such expenses exceed 7.5% of Adjusted Gross Income | |
| Non-Deductible Interest Expenses | |
| Credit card | |
| Auto loans | |
| Home equity loans | |
| Prepaid interest other than points on home mortgage | |
| Most other consumer loan interest | |
| INCOME TAX BRACKETS | |||||
| Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household | Trusts & Estates |
| 10% | $0-$9,525 | $0-$19,050 | $0-$9,525 | $0-$13,600 | $0-$2,550 |
| 12% | $9,526-$38,700 | $19,051-$77,400 | $9,526-$38,700 | $13,601-$51,800 | – |
| 21% | – | – | – | – | – |
| 22% | $38,701-$82,500 | $77,401-$165,000 | $38,701-$82,500 | $51,801-$82,500 | – |
| 24% | $82,501-$157,500 | $165,001-$315,000 | $82,501-$157,500 | $82,501-$157,500 | $2,551-$9,150 |
| 32% | $157,501-$200,000 | $315,001-$400,000 | $157,501-$200,000 | $157,501-$200,000 | – |
| 35% | $200,001-$500,000 | $400,001-$600,000 | $200,001-$300,000 | $200,001-$500,000 | $9,151-$12,500 |
| 37% | $500,001+ | $600,001+ | $300,001+ | $500,001+ | $12,501+ |
| PERSONAL EXEMPTION | |||||
| No longer allowed, beginning in 2018 |
| STANDARD DEDUCTIONS | |||
| Single | Married Filing Jointly | Married Filing Separately | Head of Household |
| $12,000 | $24,000 | $12,000 | $18,000 |
| MODIFIED ADJUSTED GROSS INCOME TAX BASE THRESHOLDS FOR TAXATION OF SOCIAL SECURITY BENEFITS | ||||
| % Taxed | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
| 50% | $25,000-$34,000 | $32,000-$44,000 | Depends on whether spouses live together during the tax year | $25,000-$34,000 |
| 85% | $34,001+ | $44,001+ | Depends on whether spouses live together during the tax year | $34,001+ |
| QUALIFIED LTC PREMIUM DEDUCTIBILITY | |||||
| Age | <40 | 41-50 | 51-60 | 61-70 | >70 |
| Amount | $420 | $780 | $1,560 | $4,160 | $5,200 |
More information regarding this and other tax data can be found in our 2018 Federal Tax Reference Guide
2017
| SINGLE | |
| Taxable Income | Tax Rate |
| $0 – $9,325 | 10% |
| $9,326 – $37,950 | 15% |
| $37,951 – $91,900 | 25% |
| $91,901 – $191,650 | 28% |
| $191,651 – $416,700 | 33% |
| $416,701 – $470,700 | 35% |
| $470,701 + | 39.6% |
| Exemptions (Subject to phase out) | |
| Personal Exemption Amount | $4,050 |
| Single phase out AGI1 (for each $2,500 of AGI1 over threshold, exemptions reduce 2%) |
$261,500 |
| Standard Deductions | |
| Single | $6,350 |
| Additional Deduction (If Blind or Age 65+) | |
| Single | $1,550 |
1AGI = Adjusted Gross Income
| MARRIED FILING SEPARATELY | |
| Taxable Income | Tax Rate |
| $0 – $9,325 | 10% |
| $9,326 – $37,950 | 15% |
| $37,951 – $76,550 | 25% |
| $76,551 – $116,675 | 28% |
| $116,676 – $208,350 | 33% |
| $208,351 – $235,350 | 35% |
| $235,351 + | 39.6% |
| Exemptions (Subject to phase out) | |
| Personal Exemption Amount | $4,050 |
| Married Filing Separately phase out 1 (for each $2,500 of AGI1 over threshold, exemptions reduce 2%) |
$156,900 |
| Standard Deductions | |
| Married Filing Separately | $6,350 |
| Additional Deduction (If Blind or Age 65+) | |
| Married | $1,250 |
1AGI = Adjusted Gross Income
| MARRIED FILING JOINTLY | |
| Taxable Income | Tax Rate |
| $0 – $18,650 | 10% |
| $18,651 – $75,900 | 15% |
| $75,901 – $153,100 | 25% |
| $153,101 – $233,350 | 28% |
| $233,351 – $416,700 | 33% |
| $416,701 – $470,700 | 35% |
| $470,701 + | 39.6% |
| Exemptions (Subject to phase out) | |
| Personal Exemption Amount | $4,050 |
| Married Filing Jointly phase out 1 (for each $2,500 of AGI1 over threshold, exemptions reduce 2%) |
$313,800 |
| Standard Deductions | |
| Married Filing Jointly | $12,700 |
| Additional Deduction (If Blind or Age 65+) | |
| Married | $1,250 |
1AGI = Adjusted Gross Income
| HEAD OF HOUSEHOLD | |
| Taxable Income | Tax Rate |
| $0 – $13,350 | 10% |
| $13,351 – $50,800 | 15% |
| $50,801 – $131,200 | 25% |
| $131,201 – $212,500 | 28% |
| $212,501 – $416,700 | 33% |
| $416,701 – $444,550 | 35% |
| $444,551 + | 39.6% |
| Exemptions (Subject to phase out) | |
| Personal Exemption Amount | $4,050 |
| Head of Household phase out 1 (for each $2,500 of AGI1 over threshold, exemptions reduce 2%) |
$287,650 |
| Standard Deductions | |
| Head of Household | $9,350 |
| Additional Deduction (If Blind or Age 65+) | |
| Head of Household | $1,550 |
1AGI = Adjusted Gross Income
| TRUSTS & ESTATES | |
| Taxable Income | Tax Rate |
| $0 – $2,550 | 15% |
| $2,551 – $6,000 | 25% |
| $6,001 – $9,150 | 28% |
| $9,151 – $12,500 | 33% |
| $12,501 + | 39.6% |
| DEDUCTIBILITY OF QUALIFIED LTC PREMIUM | |||||
| Age | 40 or less | 41-50 | 51-60 | 61-70 | 71+ |
| Amount | $410 | $770 | $1,530 | $4,090 | $5,110 |
The information presented here is not intended to be a comprehensive analysis. Chernoff Diamond is a benefits advisory firm and does not provide tax or legal advice. Individuals or Employers should consult with qualified legal and/or tax counsel for guidance in respect of matters of law, tax and related regulation.
