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2018 Tax Rates

Whether you’re an individual or a business owner, taxes are a fact of life. Still, when you work with an accounting firm like Excellent Tax and Accounting, our dedicated team of tax and accounting professionals makes sure that you have one less thing to worry about. If you are looking for a cost-effective solution to manage your finances or need time to get an accurate financial situation to make informed decisions about the financial future, we will help you.

 

2018 Tax Rates – Single Taxpayers – Standard Deduction $12,000

10%

0 to $9,525

12%

$9,525 to $38,700

22%

$38,700 to $82,500

24%

$82,500 to $157,500

32%

$157,500 to $200,000

35%

$200,000 to $500,000

37%

Over $500,000

2018 Tax Rates – Married Jointly & Surviving Spouses – Standard Deduction $24,000

10%

0 to $19,050

12%

$19,050 to $77,400

22%

$77,400 to $165,000

24%

$165,000 to $315,000

32%

$315,000 to $400,000

35%

$400,000 to $600,000

37%

Over $600,000

2018 Tax Rates – Married Filing Separately – Standard Deduction $12,000

10%

0 to $9,525

12%

$9,525 to $38,700

22%

$38,700 to $82,500

24%

$82,500 to $157,500

32%

$157,500 to $200,000

35%

$200,000 to $300,000

37%

Over $300,000

2018 Tax Rates – Head of Household – Standard Deduction $18,000

10%

0 to $13,600

12%

$13,600 to $51,800

22%

$51,800 to $82,500

24%

$82,500 to $157,500

32%

$157,500 to $200,000

35%

$200,000 to $500,000

37%

Over $500,000

2018 Tax Rates – Estates & Trusts

10%

0 to $2,550

24%

$2,550 to $9,150

35%

$9,150 to $12,500

37%

Over $12,500

 

Social Security

2018 Tax Rates

Social Security Tax Rate: Employers

6.2%

Social Security Tax Rate: Employees

6.2%

Social Security Tax Rate: Self-Employed

15.3%

Maximum Taxable Earnings

$128,400

Medicare Base Salary

Unlimited

Medicare Tax Rate: Employers

1.45%

Medicare Tax Rate: Employees

1.45%

Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)

0.9%

Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)

3.8%

Miscellaneous

2018 Tax Rates

Business expensing limit: Cap on equipment purchases

$2,500,000

Business expensing limit: New and Used Equipment and Software

$1,000,000

Prior-year safe harbor for estimated taxes of higher-income

110% of your 2018 tax liability

Standard mileage rate for business driving

54.5 cents

Standard mileage rate for medical driving

18 cents

Standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station

18 cents

Standard mileage rate for charitable driving

14 cents

Child Tax Credit

$2,000

Unearned income maximum for children under 19 before kiddie tax applies

$1,050

Maximum capital gains tax rate for taxpayers with income up to $38,600 for single filers, $77,200 for married filing jointly

0%

Maximum capital gains tax rate for taxpayers with income above $38,600 for single filers, $77,200 for married filing jointly

15%

Maximum capital gains tax rate for taxpayers with income above $425,800 for single filers, $479,000 for married filing jointly

20%

Capital gains tax rate for unrecaptured Sec. 1250 gains

25%

Capital gains tax rate on collectibles

28%

Maximum contribution for Traditional/Roth IRA

$5,500 if under age 50
$6,500 if 50 or older

Maximum employee contribution to SIMPLE IRA

$12,500 if under age 50
$15,500 if 50 or older

Maximum Contribution to SEP IRA

25% of eligible compensation
up to $55,000

401(k) maximum employee contribution limit

$18,500 if under age 50
$24,500 if 50 or older

Estate tax exemption

$11,180,000

Annual Exclusion for Gifts

$15,000

Education

2018 Tax Rates

American Opportunity Credit (Hope)

$2,500

Lifetime Learning Credit

$2,000

Student Loan Interest Deduction

$2,500

Coverdell Education Savings Contribution

$2,000

Source: IRS

Standard Meal Rates for Family Child Care Providers for 2018 income tax returns

Continental U.S.

2018-19 Tax Rates

For each breakfast

$1.31

For each lunch or supper

$2.46

For each snack (up to 3 per day for each child)

$0.73

Alaska

2018-19 Tax Rates

For each breakfast

$2.09

For each lunch or supper

$3.99

For each snack (up to 3 per day for each child)

$1.19

Hawaii

2018-19 Tax Rates

For each breakfast

$1.53

For each lunch or supper

$2.88

For each snack (up to 3 per day for each child)

$0.86

Source: Federal Register

 

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