2018
Please be aware that a large number of individual tax items of the 2018 Tax Act sunset in 2025.
Additional tax law changes: Many items that were not extended during the calendar year were extended on February 9, 2018. These changes will affect the 2017 tax year and will delay filing.
Note for 2019: Alimony received is not income and alimony paid is not a deduction. However, you can elect to follow any new rules that will be effective in 2026.
Auto Mileage Rates for 2018: Released December 14, 2017
Business—54.5 cents per mile
Charity—14 cents per mile
Medical—18 cents per mile
Moving—18 cents per mile
Gift Exclusion Annual Amount for 2018:
$15,000
Long-Term Care Insurance Premium Limits for 2018:
Age 40 or less: $420
More than 40, less than 51: $780
More than 50, less than 61: $1,560
More than 60, less than 71: $4,160
More than 70: $5,200
HSA contribution amounts for 2018:
Individual— $3,450 (+$1,000 for over age 55)
Family— $6,900 (+$1,000 for over age 55)
Compensation limits (401, 404, 408) for 2018:
$275,000
Election to Expense Certain Depreciation Assets (Section 179) for 2018:
$1,000,000 (limit on capital purchases: $2,500,000).
Standard Deductions for 2018:
$24,000 (MFJ, Surviving Spouse);
$18,000 (HOH);
and $12,000 (Single, MFS).
Additional Medicare Tax for 2018:
3.8% surtax on net investment income and 0.9% Medicare contributions tax on earned income when adjusted gross income exceeds:
$250,000 (MFJ, Surviving Spouse);
$200,000 (HOH and Single);
and $125,000 (MFS)
Deduction for Pass-through (includes Sole Shareholders) Entities:
20% of Qualified Business income limited to 50% of W-2 Wages or 25% of wages and 2.5% of Qualified Property Unadjusted Basis. Income limitations for service industries.
Estate and Gift Lifetime Exclusion for 2018:
$11.2 million ($22.4M for spousal portability election)
Social Security Numbers for 2018:
Wage Limit: $129,400
Retirement Deferrals for 2018:
401(k) — $19,500 (age 50 and over catch-up is $6,500)
Simple — $13,000 (age 50 and over catch-up is $3,000)
IRA — $6,000 (age 50 and over catch-up is $1,000)
Defined Contribution Plan — $56,000
Child Tax Credit in 2018:
$2,000 (Maximum refundable portion per child of $1,400) for children under 17 years of age.
Bonus Depreciation in First Year:
100% Bonus Depreciation in First Year until 12/31/2022.
Alternative Minimum Tax for 2018:
For 2018, the exemption amounts are $70,300 (Single/HOH); $109,400 (MFJ) and $54,700 for (MFS) and do not phase out until $500,000 (Single/HOH/MFS) and $1,000,000 (MFJ). The 28% rate applies to excess AMTI of $191,500 (MFJ) and $95,750 (Single/HOH/MFS)
ACA Penalty for 2018:
For 2018, the penalty for not maintaining minimum essential health coverage: $695