2019
| Elimination of Individual Mandate (penalty paid for not having health insurance) |
| 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 10% 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-$9,700 | $0-$19,400 | $0-$9,700 | $0-$13,850 | $0-$2,600 |
| 12% | $9,700-$39,475 | $19,400-$78,950 | $9,700-$39,475 | $13,850-$52,850 | – |
| 21% | – | – | – | – | – |
| 22% | $39,475-$84,200 | $78,950-$168,400 | $39,475-$84,200 | $52,850-$84,200 | – |
| 24% | $84,200-$160,725 | $168,400-$321,450 | $84,200-$160,725 | $84,200-$160,700 | $2,600-$9,300 |
| 32% | $160,725-$204,100 | $321,450-$408,200 | $160,725-$204,100 | $160,700-$204,100 | – |
| 35% | $204,100-$510,300 | $408,200-$612,350 | $204,100-$306,175 | $204,100-$510,300 | $9,300-$12,750 |
| 37% | $510,300+ | $612,350+ | $306,175+ | $510,300+ | $12,750+ |
| PERSONAL EXEMPTION | |||||
| No longer allowed, beginning in 2018 |
| STANDARD DEDUCTIONS | |||
| Single | Married Filing Jointly | Married Filing Separately | Head of Household |
| $12,200 | $24,400 | $12,200 | $18,350 |
| 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% | $34,000+ | $44,000+ | Depends on whether spouses live together during the tax year | $34,000+ |
| QUALIFIED LTC PREMIUM DEDUCTIBILITY | |||||
| Age | <40 | 41-50 | 51-60 | 61-70 | >70 |
| Amount | $420 | $790 | $1,580 | $4,220 | $5,270 |
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% | $9,525-$38,700 | $19,050-$77,400 | $9,525-$38,700 | $13,600-$51,800 | – |
| 21% | – | – | – | – | – |
| 22% | $38,700-$82,500 | $77,400-$165,000 | $38,700-$82,500 | $51,800-$82,500 | – |
| 24% | $82,500-$157,500 | $165,000-$315,000 | $82,500-$157,500 | $82,500-$157,500 | $2,550-$9,150 |
| 32% | $157,500-$200,000 | $315,000-$400,000 | $157,500-$200,000 | $157,500-$200,000 | – |
| 35% | $200,000-$500,000 | $400,000-$600,000 | $200,000-$300,000 | $200,000-$500,000 | $9,150-$12,500 |
| 37% | $500,000+ | $600,000+ | $300,000+ | $500,000+ | $12,500+ |
| 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% | $34,000+ | $44,000+ | Depends on whether spouses live together during the tax year | $34,000+ |
| QUALIFIED LTC PREMIUM DEDUCTIBILITY | |||||
| Age | <40 | 41-50 | 51-60 | 61-70 | >70 |
| Amount | $420 | $780 | $1,560 | $4,160 | $5,200 |
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.
