2018 Income Tax Brackets and Rates

2018 Income Tax Brackets and Rates
Many tax brackets, thresholds, and rates will change in 2018 due to the passage of the Tax Cuts and Jobs Act (TCJA). Changes include elimination of personal exemptions, elimination of the Pease limitation on itemized deductions and the expansion of the Child Tax Credit.

Each year, the IRS adjusts more than 40 tax provisions for inflation to prevent what is called a “bracket creep”. This prevents people from being placed into higher income tax brackets or reduced credits/deductions due to inflation, opposed to increase in real income.
The standard deduction for single filers will increase by $5,500 and by $11,000 for married couples filing jointly. The personal exemption for 2018 is eliminated. Income limits for all tax brackets will be adjusted for inflation in 2018 (Table 1).

If you have any questions on how you will be affected by the TCJA, contact Doshi and Associates for a consultation: 248.858.8580

2018 Tax Bracket

2018 Tax Brackets | Center for Federal Tax Policy | El-Sibaie | https://taxfoundation.org/2018-tax-brackets/