[fname], the Tax Cuts and Jobs Act of
2017 (TCJA) eliminated or modified several tax provisions
starting in 2018.
Here are 5 of some 25 changes
individuals, families & businesses need to know as they get ready for
tax season. I'll cover these in more depth AND the other 21
changes on an upcoming webinar (click
here to Register).
Personal Exemptions - Personal exemptions are
eliminated for tax years 2018 through 2025.
Standard Deductions - The standard deduction for
married couples filing a joint return in 2018 is $24,000. For
singles and married individuals filing separately, it is
$12,000, and for heads of household, the deduction is $18,000.
The additional standard
deduction for blind people and senior citizens in 2018 is
$1,300 for married individuals and $1,600 for singles and
heads of household.
Income Tax Rates - In 2018 the top tax rate of 37
percent affects individuals whose income exceeds $500,000
($600,000 for married taxpayers filing a joint return).
Marginal tax rates for 2018 are as follows: 10%, 12%, 22%,
24%, 32%, 35%, and 37%. While the tax rate structure remains
similar to prior years (i.e., with seven tax brackets), the
tax-bracket thresholds increased significantly for each filing
status under tax reform.
Estate and Gift Taxes - In 2018 there is an exemption
of $11.18 million per individual for estate, gift, and
generation-skipping taxes, with a top tax rate of 40 percent.
The annual exclusion for gifts is $15,000.
Alternative Minimum Tax (AMT) - For 2018, exemption
amounts increased to $70,300 for single and head of household
filers, $109,400 for married people filing jointly and for
qualifying widows or widowers, and $54,700 for married
taxpayers filing separately.
As I mentioned these are just 5 of the 25 different changes
for individuals and businesses that will affect you as we move
from 2018 into 2019. I'll cover them all in more depth
on the upcoming webinar - look for an email from me on that in
the next few days.
As always please
contact the office for assistance with following these and
other year-end planning strategies that might be suitable for
your particular situation.
Don't hesitate to call us if you need help or
want to get started on tax planning for the remainder of 2018 (or a jump
start on 2019)!
If you have comments or questions on the information in these
articles, as usual feel free to call our offices.
Thanks! Julie Jeffers
Feel free to give us a call if
you have a question about these topics or issues or if you
need help or want to
get started on tax planning for the rest of 2018! If you have comments on the information in these
articles, feel free to call our offices.