2018/19Changes
Home Tax rebates Services New Business Form Loan Calculator Calculators 2018/19Changes Links Business Questions Valuations Defer tax

 

See Below for  2018 and 2019 rates and information -

Please contact us for additional information or to request an appointment.

wnw@wneill.com

Accounting Office, 1430 Church Lane, Easton, PA 18040

Effective for 2018/19

IRA Contribution max.  In 2018 limit is $5,500 and $6,500 with age catch-up.

  Standard Deductions & Personal Exemption - 2019 Year

Standard Deduction - MFJ - $24,000 (If one spouse is age 65 use $25,250; if both souses are 65, use $26,500); Single - $13,250 or $7,900 if 65 years of age; Head of Household (HoH) - $18,000 ($19,250).  

Personal Exemption - Eliminated for 2018! was $4,050 for 2017

     Taxable Income Amounts/rates for: Calendar year 2018

Married, filing jointly, taxable income - Rates

$0 - $19,050                 10%

$19,051 - $77,400         12%

$77,401 - $165,000        22% 

$165,001 - $315,000       24%

$315,001 - $400,000       32%

$400,001  - $600,000      35%  

$600,001+                     37% Top rate was previously 39.6%

For taxable income under $77,200, Capital Gains tax rate is - 0 -%.

Single

$0 - $9,525                   10%

$9,526- $38,700             12%

$38,701 - $82,500           22% 

$82,501- $1157,500         24%

$157,501  - $200,000       32%

$200,001 - $500,000        35% 

$500,001+                      37% Previous to rate was 39.6%

For taxable income under $38,600, Capital Gains tax rate is - 0 -%

 

Head of Household

$0 - $13,600                    10%

$13,601 - $51,800             12%

$51,801 - $82,500             22% 

$82,501 - $157,500           24%

$157,501 - $200,000          32%

$200,001 - $500,000          35%

$500,001+                        37%  Previous top rate was 39.6%

Capital Gains tax rate is - 0 -% for taxable income under $38,600

A 20% Capital Gains tax rate applies to taxpayers with Adjusted Gross Income (AGI) over $200,000 (Singles) or $250,000 (Married).

Pennsylvania Individual Income Tax rate - 3.07%

Mileage deductions - - - for 2018

Business use          $.545 per mile

Charitable            $.14 per mile 

Medical/Moving     $.18 per mile

Social Security

Social Security Wage ceiling - $128,400 in 2018.  Early retirement income phase out begins at $17,040 in 2018. No ceiling for Medicare 1.45% tax; additional .9% surtax paid on wages that exceed $250,000 (MFJ) $125,000 (MFS) $200,000 (S)(HoH.

Self Employed - Health Insurance deduction

Remains 100% in 2018 and later

Minimum wage in Pennsylvania - employers with more than 10 full time employees

 $7.25 for 2018in Pennsylvania; $8.80 in NJ for 2019

Federal min.  $7.25 for 2018

Corporate Income Tax Rates - 2018 new rate is 21%

Personal Services Corporations - 21%

Annual Gift tax exclusion is $15,000 for 2018.

Federal estate and gift tax exclusion is $11,180,000 for 2018.

Earned Income credit (EIC) - 2018 - Taxpayer cannot have Investment income in excess of $3,450, including net rental income. Maximum EIC is $6,444.

                                                Phaseout range

Children    Max credit     Begin Income         Ending income

- 0 -        $  520               $8,510                  $15,310

One          3,468              $18,700                $40,402

Two          5,728              $18,700                $45,898

Three        6,444              $18,700                $49,298

Above income levels are higher if Married, Filing Jointly.                                  

The Education credits and Child tax credits are renewed for 2018.

Alternative Minimum tax exemption amounts - 2018

Single        $70,300 - Was $54,300 pre 2018

Married, Joint    $109,400 - Was $84,500 pre 2018

Itemized deduction Limitations - Repealed for 2018

Other notable 2018 changes:

Child tax credit doubled to $2,000 per child

Non Child tax credit $500

Medical expense deduction threshold - 7.5% for all

State and Local tax deductions limited to $10,000

Misc. expense itemized deductions subject to 2% threshold eliminate; can continue to deduct gambling losses.

 

 

The PA Inheritance tax rate is 4.5% for transfers from parents to children.  Gifts or transfers made within one year of death are taxed in addition to transfers effected after death.  A life estate which allows someone the right to remain in a home after transferring ownership has a value subject to the tax.