What the 2018 Tax Brackets Look Like Under Tax Reform
We heard last week that the max personal tax category would be 37%. We now have info on all the personal tax categories along with a few more details. One more committee review then Congress is expected to vote on the complete measure and get it to the president before Christmas. Here’s the updated info:
Tax brackets for 2018:
10% for income up to $19,050 ($9,525 for Single filers)
12% for income $19,051 to $77,400 ($9,526 to $38,700 for Single filers)
22% for income $77,401 to $165,000 ($38,701 to 82,500 for Single filers)
24% for income $165,001 to $315,000 ($82,501 to $157,500 for Single filers)
32% for income $315,001 to $400,000 ($157,501 to $200,000 for Single filers)
35% for income $400,001 to $600,000 ($200,001 to $500,000 for Single filers)
37% for income $600,001 and above ($500,001 and above for Single filers)
The new legislation will also treat Alimony received as NOT taxable and Alimony paid as NOT deductible – this change will be effective for the 2019 tax year.
Expect more details to continue to emerge even after the President signs the legislation as the IRS will still need to “interpret” the new law to convert it into tax forms and worksheets for the 2018 filing season.