Now is the time to begin gathering tax forms and calculating numbers. Did you know as a result of the 2017 Tax Cuts and Jobs Act, your income tax rate may be different when filing for the 2018 year? Here’s what you need to know about the 2018 federal income tax brackets and standard deduction.
In This Article
Remember, these numbers are for your 2018 taxes. So you should look at them if you changed your withholding this year–starting on January 1, 2018. You’ll file taxes using these numbers in the spring of 2019.
Personal Exemption and Phase-Out
Gone. Previously the 2018 personal exemption rate was slated to be $4,150 but the new tax bill has removed this exemption entirely.
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2018 Standard Deduction
The standard deduction is jumping A LOT this year. Here are the standard deductions by tax filing status:
- Married Filing Jointly/Surviving Spouse: $24,000
- Heads of Households: $18,000
- Single: $12,000
- Married Filing Separately: $12,000
2018 IRS Tax Brackets and Rates
So how much will you pay in taxes for 2018? Here’s how the tax rate is applied for the year. Remember, the income listed here is your taxable income–not your gross income.
Table 1. Married Filing Jointly and Surviving Spouses
| Taxable Income | Taxes |
|---|---|
| Up to $19,050 | 10% of taxable income |
| Over $19,050 but not over $77,400 | $1,905 plus 12% of excess over $19,050 |
| Over $77,400 but not over $165,000 | $8,907 plus 22% of the excess over $77,400 |
| Over $165,000 but not over $315,000 | $28,179 plus 24% of the excess over $165,000 |
| Over $315,000 but not over $400,000 | $64,179 plus 32% of the excess over $315,000 |
| Over $400,000 but not over $600,000 | $91,379 plus 35% of the excess over $400,000 |
| Over $600,000 | $161,379 plus 37% of the excess over $600,000 |
Table 2. Heads of Households
| Taxable Income | Taxes |
|---|---|
| Up to $13,600 | 10% of taxable income |
| Over $13,600 but not over $51,800 | $1,360 plus 12% of excess over $13,600 |
| Over $51,800 but not over $82,500 | $5,944 plus 22% of the excess over $51,800 |
| Over $82,500 but not over $157,500 | $12,698 plus 24% of the excess over $82,500 |
| Over $157,500 but not over $200,000 | $30,698 plus 32% of the excess over $157,500 |
| Over $200,000 but not over $500,000 | $44,298 plus 35% of the excess over $200,000 |
| Over $500,000 | $149,298 plus 37% of the excess over $500,000 |
Table 3. Unmarried Individuals (other than Surviving Spouses and Heads of Households:
| Taxable Income | Taxes |
|---|---|
| Up to $9,525 | 10% of taxable income |
| Over $9,525 but not over $38,700 | $952.50 plus 12% of excess over $9,525 |
| Over $38,700 but not over $82,500 | $4,453.50 plus 22% of the excess over $38,700 |
| Over $82,500 but not over $157,500 | $14,089.50 plus 24% of the excess over $82,500 |
| Over $157,500 but not over $200,000 | $32,089.50 plus 32% of the excess over $157,500 |
| Over $200,000 but not over $500,000 | $45,689.50 plus 35% of the excess over $200,000 |
| Over $500,000 | $150,689.50 plus 37% of the excess over $500,000 |
Table 4. Married Individuals Filing Separately:
| Taxable Income | Taxes |
|---|---|
| Up to $9,525 | 10% of taxable income |
| Over $9,525 but not over $38,700 | $952.50 plus 12% of excess over $9,525 |
| Over $38,700 but not over $82,500 | $4,453.50 plus 22% of the excess over $38,700 |
| Over $82,500 but not over $157,500 | $14,089.50 plus 24% of the excess over $82,500 |
| Over $157,500 but not over $200,000 | $32,089.50 plus 32% of the excess over $157,500 |
| Over $200,000 but not over $300,000 | $45,689.50 plus 35% of the excess over $200,000 |
| Over $300,000 | $80,689.50 plus 37% of the excess over $300,000 |
Again, remember that these numbers are for the 2018 calendar year. (This information is summarized from the Tax Foundation)
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If qualifying son, disabled, receives social security benefits, can I still claim
Head of Household?
Can I use the 2018 IRS tax brackets & rates as published or is there some other required method
If we pay a grandson’s tuition directly to the school is it deductible? And what is the standard deduction for 2018?
Do you have to be 65 years old during the year 2018 or be 65 when filing income taxes to get the standard deduction of $1600. I will be 65 February 15, 2019.
I moved 300 miles to get a new job/ can any of this be written off on deductions in 2018?
I am 90 years old do l get an extra deductible allowance
Hi I am married filing separately over 65 and my income is 43,000 do you take the deduction of $12,000 and $1300 then will that be what I have to pay taxes on which is $29,700? so what would my taxes be?
Looking for answers
I am not sure if i need to change my W4 i am single with one child and income around 40,000. I am filling with 3 at this time. should i change it?
According to the W-4 worksheet, you can claim 1 for yourself, 1 for Head of Household, 1 if you are single and have only one job, and 4 for your child since you earn less than $71,201. So, it’s saying you should claim 7 allowances on your W-4.
https://www.irs.gov/pub/irs-pdf/fw4.pdf
https://www.irs.gov/individuals/irs-withholding-calculator
I’m in the exact same situation and freaking out about claiming 7. I’ve never heard of anyone claiming so much before. But, it’s what the worksheet says to do. I’m so confused.
Better safe than sorry! It is easier to get a refund than get hit with sa surprise tax bill at the end of the year.
Is there an option to invest in an IRA or other type retirement investment to reduce taxable income one month before year end? Preferably an investment without a limit.
IRA with a $5500 limit, $6500 if you’re 50 or older. If you qualify you can contribute to an HSA also.
Need to update those numbers for 2019 and provide more detail. For 2019, a single person with Modified Adjusted Gross Income above $137,000 does not qualify to make any contributions to an IRA; for married couples filing jointly, the MAGI limit is $203,000 for 2019…… For 2019, the most that a qualifying individual under age 50 can contribute to his Traditional IRA (and deduct it from income) is SIX thousand dollars. Again for 2019, a qualifying individual aged 50 to 70 and a half can contribute (and deduct from income) up to SEVEN thousand dollars to a Traditional IRA. …………………………… After age 70.5, nobody is allowed to contribute to an IRA….. moreover, at any age, a person who is covered by a retirement plan at work, such as a 401(k) or 403(b), is NOT eligible to make any deductible contributions to an IRA no matter what his MAGI is.
Do I have to itemize deductions or claim the standard deduction or on my 2018 tax return? I don’t want to do either.
what else would you prefer to do?
Standard deduction is always easier and with the changes this year the limit is 12k for single and 24k for married. For the average person/couple it will be harder to exceed the 12k/24k limit where itemizing would make a difference. So if your deductions are less than the standard limit then stick with standard deduction.
With the new 2017 tax rate, can you clear up how it will work. I collect 24,828 in NJ pension and 16,332 I. SS survivor benefit. What is my tax rate for federal deductions? Also, what will I owe? Thank you
I am a bit confused as to just what my tax liability will be in 2018. I am single age 75 and want to know what my standard deduction will be. My husband passed away in 2015 and because I receive CSRS retirement was not eligible for any of his Social Security so I get a wapping $143.00 per month SS for my credible service. Do I need to claim my SS.
If my husband and I get $22,500 on SS, and $24,000 on a public pension per year, how much would we have to pay in taxes, if we have no state tax?
About $1159. which is just over 10% of 50% of social security. Everything else should be under all of the exemptions, but because your pension income plus half of SS is more than 34K then 50% of your SS is taxable at normal income rates. Your pension income uses up the personal exemption so half of your SS income, which comes to be $11,250, is your taxable income. so referring to the table above the first $9520 is taxed at 10% = $952 , the next $1725 is taxed at 12% = 207
952+207=$1159 in taxes.
Personal exemption would be $1300 more each if they are 66 or over.
I meant to say that if they are 66 or older the standard deduction will be $2600 ($1300 each). Total standard deduction would be $26,600.
On the previous comment that is 65 or older.
I think there is a mistake on amt of their SS $ that is taxable and their total tax owed. U MUST complete th SS Benefits worksheet to figure amt of ur SS that is taxable ea yr, but only after u do ur form 1040 thru line 4. Follow th 1040 line instructions.. . SS instrcts start on pg 32. Per th SS Benefit worksheet in th Form 1040 Booklet, – p33, u add 1/2 ur SS to all ur other income – wrksht steps 1–5. Follow step 3 closely. For people above, 1/2 SS ($11,250) + all step 3 income ($24,000) . Marrieds subtract $32,000 from that $35,250 income total (wksht step 9). The difference – $3,250 – is basically 1/2’d again to $1,625 in step 13 & for them becomes amt on line 16 which is th amt of their SS that is taxable. It goes on their 1040, line 5b & adds to their other income. Then subtract their standard dedctn on line 8. If the people in above qstn only have $24,000 all other income, then standard dedctn ($26,600) is more than & makes them have no taxable income on form 1040 – line 10. Then rest of form 1040 has to be done to see if any additional tax owed.. Sorry this was so lengthy
I receive ss retirement and retirement pension I just applied for a $16000 loan that went to credit card companies to pay high interest cards do I file this on my tax return
Your loan amount and the interest rate you pay on the loan are none taxable transactions–file your taxes as if they don,t exist!
I’m seeing different amounts fro standard deduction from different sites. One IRS site listed the single standard deduction at 6,600 and others say $12,000. I’m taking money from my 401k so the wrong info could put me in a higher tax rate bracket. Which is right? And how can I be sure?
Based on the new 2018 new tax law you would get 12000 as the standard deduction but that includes the personal exemption you were getting in 2017. However 12000 exceeds the 2 rates you were getting in 2017!
I just got married in Aug 2018. I am currently on SS Disability with my husband our combined income it under $42,000. We are also supporting a 34 yr old daughter who is unable to work but we do not believe would qualify for disability. Will we have to pay much in taxes if we file married filing jointly? Taxes are being taken out of my husband’s paychecks biweekly currently. He is 61.
will traditional ira still be deductiable if qualified
single, age 66.. do I still file taxes if my only income is Social S? that gross total is less than 17,000. for the year,.. I still deduct my insurance cost & 12,000. standard + over 65 , another 1,300.00..balance would be lower than 4,000. Question is what is the lowest amount a single person would have to file federal taxes??
Assuming your only income is SS, none of your income is taxable. As you already have Medicare, you are also exempt from filing tax return requirement. It’s hard to say the lowest amount as each person’s (couple’s) situation is different. I would still keep all financial record (document) in case you get an inquiry letter from IRS in the future. You may, if you’ve just started receiving your SS benefit this year at your full retirement age.
I am a retiree. I will have two pensions, social security, and VA disability payments for 2018. What will be taxable? I will have a total of 40K in income.
No tax on your VA disability
I don’t by what you said reduce alot….ALOT!. Currently a single get some standard 6300 plus 4000 personal exemption equal to over 10000. Now single get 12000 standard but lost to 4000 personal exemption to me it only slightly over 1000 more. But let said a single mom with four children, currently she can file a head of houseshole and get 9000 plus 4000×5 = 20000 of personal exemption she get a total of almost 30000 deductable, but now she lost that 20000 and she only get 18000 to file as head of the househole. 2000 child credit do nothing for her if her chile are 17-18-19 and 20. Now she got no credit 3 of her child in college what is the government talking about support education.???????? After do the calculation she jump the brigde her kids end up on the street instead of college…
You missed the increased child tax credit part, each child can claim $2000 instead of $1000 of tax credit which is more than make up for the loss of personal exemption
If I itemize in 2018 I understand the $10,000 cap on SALT. Is home mortgage interest still deductible? Is there also a cap on home mortgage interest?
So, after taking the married standard deduction, can I still claim property taxes and mortgage interest?
Nope. It’s one or the other. You can either take the $24k in standard deduction, or whatever your Schedule A comes up with on Itemized Deductions. Keep in mind that State/Local/Property Tax deduction is capped at $10k. So you’ll need to come up with at least $14k of other deductions to bother with Itemizing.
My daughter receives 100% financial aid from her college, approx. $70k. She also has a local merit scholarship which is paid to the college and is refunded to her, $6k. Her tuition is $52k. Books ~ $2k
This year, 2017 return for 2016, we were able to claim her as a dependent, and due to how things fell on the 1098-T, we got the AOTC. (Like winning the lottery. We never get anything.)
The issue is, I keep reading room and board part of financial aid is taxable, and all the money above her ~ $54k in tuition and books. $76k – $54k = $22k.
Question 1) How do we find out if the financial aid and the other merit scholarship are even taxable? I called a CPA and they said it’s “situational” and they’d need to see the 1098-T, etc. I’d like to figure this out for myself because that CPA wants $425.
Question 2) Since we can’t claim dependents in 2018, can she file Single, taking her $12k deduction, and pay the ~ 10% tax on the other $10k, assuming it is ALL taxable? Since this isn’t technically earned, is it still earned income rates? CPA said yes, FWIW.
Thank you. This has been a nightmare.
Do not pay $425 , just buy $39 Turbo Tax deluxe software, Super easy to do the tax, even with your daughter’s situation.
Will seniors (65+) still get an increase to their standard deduction in 2018?
I did not see the answer to ? about over 65 is their an increase over the 24,000 std ded ?
The revised tax form has check spaces for people aged 65 and/or blind. So I assume there will be an increased standard deduction.
$1300 added to standard deduction for senior/blind persons
Yes, an additional $1300 for seniors/blind added to standard deduction of $12,000/person
What about Truck Drivers. My husband is over the road driver and gone from home 80%, right now we claim a per diem for every night he is gone, with the new tax law we will not be able to even claim half of the per diem, not including our interest on house because we will max out. Correct?
sr, citizens will be taxed at a much higher rate if they can not deduct some of their soc.sec.from fed. taxes
The new tax form allows for only the taxable portion of SS. Note line 5.
If I take the standard deduction for the year 2018 do I get an additional deduction for being over 65?
$1300
So question on this. We are going to be at the border of 165,000. In order to get the 28,179 for next year taxes, would it better to not put anything into retirement so we get the better tax break? I will have 3-4 total in my household for this year, no child dependents. We do itemize a bit here.
I qualify for head of household and am over 65. My standard deduction is $19,600. I have one child tax credit of $2,000. My questions are: Is home mortgage interest still deductible. Are property taxes still deductible? Is state income still deductible, in addition to the $19.,600?
where do I get the new tax withholding table for payroll
The tables in this article are incorrect as they do not reflect the latest official release by the IRS that can be found at https://www.irs.gov/pub/irs-pdf/n1036.pdf
Greg, you’ve linked to employer withholding tables, which are different.
What will the 2018 standard deduction be for someone who can be claimed as a dependent on another’s tax return? I used to be $1050, or $350 above earned income. Will it go to $12,000 as well?
my wife and i are both over 65 will we be able to take the extra deduction like we did in 2015 2016 and 2017
Yes, seniors 65 and older add $1300 per spouse to the new $24,000 Standard Deduction; so yours will be $26,600.
Thanks for this answer
I am getting married in September 2018; I currently itemize- my fiance does not. If I elect to file “Married filing Single” can he still take standard deduction?
No, if you itemize he must also itemize, even if he has nothing to itemize, which basically means he looses the deduction or it is limited to what ever he can claim for itemize deductions. You are more than likely better off to file jointly!
Being on a fixed income has no baring on who pays income tax and who does not. You could be on a fixed income and earn $50000.00 or $10000.00, this term used to mean that the income you receive will never go higher, that was back in the days when Government Pensions were not adjusted to the cost of living. Now all Government Pensions be it Canada Pension Plan or Old Age Security or the Garanteed Income Supplement are adjusted in January of each year based on the rise of the Cost of Living.
Why does retirees over 65 still have to pay federal income taxes? We are on a fixed income.
My question is I am a single mother of 2 is my standard deduction going up to $18,000 even though I only made $34,000 this year?
Yes and no. Your standard deduction is going up to $18,000, but not until you file your 2018 taxes in early 2019. Don’t go spending that extra refund this month! 🙂
Has the Pease limitation on itemized deductions been totally repealed?
You are correct a lot of middle-class people are going to o be screwed without the exemptions and the standard deduction doesn’t change much if they were already i
tempting anywhere near the new 24 Grand amount
CAN YOU STILL CLAIM A DISABLE ADULT ON THEIR TAXES FOR A DEDUCTION?
This new tax law really hurts families with children that could itemize deductions and receive the Exemption benefit in 2017. We have 3 children. In 2017, I could itemize + get 5 * $4050 in exemptions. This got my Taxable Income down near $90K. With the new law and removal of the exemptions I can only get my Taxable 2018 income forecast down to $120K. The doubling of the child tax credit makes it a basic wash at the Federal level, but now I have an additional $30K that I have to pay Colorado income tax at 4.63%. A $1400 tax INCREASE. Awful. Why didn’t they just change the tax brackets and leave all the itemization/exemption rules in place?
Kevin, did you factor in the doubling of the standard deduction?
Hi Rob. Yes. It is only $24K In 2017 I itemized $26K then also got the $20250 for exemptions to get my taxable income down. Now in 2018 I lose the exemptions vastly increasing my taxable income. Am I missing something? Thanks.
You still get the child tax credit which now can be up to $2000 per each qualifying child in the new 2018 tax law.
Hi Anthony, Yes. That child tax credit boost is good, but only helps at the Federal level washing out the lost Exemption benefit for a family my size. At the State level, since my taxable income has increased significantly, I am anticipating a $1400 tax INCREASE. Am I correct in my arithmetic? Am I missing something? Is there a CPA monitoring this board that can chime in? Were our lawmakers not aware of this state impact? Why didn’t they just change the tax brackets and leave all the itemization/exemption rules in place? Thanks.
Your math appears correct. Unfortunately only six states use taxable income as their basis for state income tax calculations. The majority use AGI which would be unaffected by the exemption/deduction rework, so even if your legislators were aware they most likely didn’t have a large enough voice to overturn the concessions made to include the expanded child tax credit.
Kevin, your situation is nearly identical to mine. I’m glad I stumbled on your post. My question for you is doesn’t this hurt at the Federal level as well? For anyone who itemizes >$24K already, you’re losing the exemptions with only the slight increase in the Child Tax credit to counter it. If you were getting $20K in exemptions + $2K or for the child tax credit after the phaseout, you’re now only getting $6K for the child tax credit. That’s a straight credit so it’s not apples to apples, but isn’t that significantly increasing your tax burden at the Federal level also?
From my POV it is even worse – if your 2 children are 18 years old, you loose the exemption you were getting with full-time students and you do NOT get child tax credit at all … So if you were itemizing more than 24k you loose a the full $16,200 deduction (which would have otherwise gone up in 2018). That is a big increase in tax due … definitely bad for families with college students (already costing me a ton), please tell me I’m missing something?
In 2018 filing requirement for a single person over 65 would have been. 6500.00 basic standard deduction plus 1600.00 age standard deduction plus 4150.00 exemption =12250.00
What about those being born before 1952…..now as a single i get $7850 standard deduction….what will that go to…will that double as well?….thank you
What are the personal exemption amounts for 2018?
The personal exemption is eliminated for 2018 in the new tax bill.
Does the over age 65 exemption go away in the new tax law? What is it, if it stayed?
We would like to know if over 65 gets consideration (exemption) and if healthcare premiums are
still deductible
Healthcare premiums are still deductible. Exemptions have been eliminated.
For Tax Year 2017 an addition of $1550 is provided to the Standard Deduction for those over 65 years old. How much to that addition to the Standard Deduction will be applied to tax year 2018?
I just read on another site that those 65 and over can add $1600 to the standard deduction in 2018. If this is accurate, my standard deduction in 2018 will be $1650 higher than the combined standard deduction and personal exemption in 2017. Whoop-tee-do!
But most will pay 3% less on the bulk of taxable income. If you do the math, it’s a large saving.
If you have rental property, are all the repairs all deductible at years end or do we have to deduct them over a rediculously long period of time as we have to do now
I am not sure how the new tax law changed this. In the past you could deduct repairs in the year the costs were incurred. If it was matainance you had to spread it out over several years, with time period depending on what it was you did. The difference between repairs and maintenance is that repairs are something you did because of damage and maintenance is due to something wearing out. If you had to replace carpeting because of a flood you can write it all off at once. If you replaced it because it wore out the cost will be depreciated over several years.
Both the questioner and the reporter are off base. Tax law has been loosened in this regard over the past several years, so that nearly anything can be written off in the year. The questioner needs to consult his favorite competent CPA, and the reporter needs to quit giving tax advice.
Okay, so who is correct here? We now have 2 conflicting answers!
Section 179 allows accelerated depreciation of certain capital expenses up to specified limits annually. Consult a good CPA or EA. (Kitty is right; reporter not so much.)
The hyperlinked text “2017 Federal Income Tax Brackets article.” redirects to the same page, which is 2018 tax info. I can’t get to the 2017 tax info. Thanks.
Thanks for letting me know. I’ve updated the link to the 2017 tax rates.