THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 45+-year veteran tax professional Robert D Flach.
Friday, October 20, 2017
THIS JUST IN – IRS COLA AND INFLATION ADJUSTEDMENTS FOR 2018
it does every year at this time, the Internal Revenue Service has announced the
new inflation and COLA adjustments for calendar year 2018.
in the process of preparing my annual “What’s New in Taxes for 2018”
report.I will let you know when it is
available.But I will identify some of
the basic changes for you here.
calendar year 2018 tax returns -
Personal Exemption is $4,150 (up from $4,050).
Standard Deduction Amounts are:
and Married Filing Separate= $6,500 (up from $6,350)
of Household = $9,550 (up from $9,350)
Filing Joint and Qualified Widow(er) = $13,000 (up from $12,700)
Standard Deduction for a dependent remains the greater of (1) $1,050, or (2)
the sum of $350 and the individual's earned income.
additional Standard Deduction amount for the age 65 or older or blind is $1,300
(up from $1,250) for married individuals and $1,600 (up from $1,550) for Single
and Head of Household.
maximum IRA contribution and “catch-up” remains at $5,500 and $1,000.
maximum employee contribution to a 401(k), 403(b), 457 and federal Thrift
Savings Plan is $18,500 (up from $18,000).The “catch-up” contribution remains at $6,000.
estate and gift tax exemption is $5.6 million (up from $5.49 million).
annual gift exclusion amount is $15,000 (up from $14,000).
It is important to note that these
numbers are for the tax law as it currently exists.Tax legislation may be passed by the end of
the year that changes some or all of the above numbers.
here for the official IRS “Revenue Proclamation”.
see the appropriate numbers for 2017 tax returns, click here.