1. Tax Rates and Tables Chapter 14 pp. 561-590
2018 National Income
Tax Workbook™

2. 2017 Tax Rates – MFJ p. 562

3. 2017 Tax Rates – HoH p. 562

4. 2017 Tax Rates – Single p. 562

5. 2017 Tax Rates – MFS p. 562

6. 2017 Tax Rates – T & E p. 563

7. 2017 Capital Gains Rates p. 563

8. 2018 Tax Rates – MFJ p. 563

9. 2018 Tax Rates – HoH p. 563

10. 2018 Tax Rates – Single p. 564

11. 2018 Tax Rates – MFS p. 564

12. 2018 Tax Rates – T & E p. 564

13. 2018 Capital Gains Rates p. 264

14. 2019 Tax Rates pp
For tax years beginning after 12/31/18 IRS is directed to make cost of living adjustments

15. Cars, Trucks, Vans p. 567
Standard Mileage Rate Business 53.5 (17), 54.5 (18) Charity 14 Moving/medical 17 (17), 18 (18) But note – no moving expense deduction in 18

16. Depreciation Inclusion p. 566
25¢ depreciation included in standard mileage (18)
But note – no itemized deduction for unreimbursed EE travel in 18

17. Depreciation Limits pp. 567-568
10K year one
16K year two
9,600 year three
5,760 later years
8K additional first year

18. Lease Inclusion Amounts p. 569
IRC 280F(c) reduce deduction for lessee of a leased passenger car
Must be substantially equivalent to limits on depreciation deductions imposed on car owners
Rev. Proc – Table 4

19. Business Expense Limits p. 570
IRC 179 max 510K (17), 1M (18)
Phaseout begins 2,030,000 (17), 2,500,000 (18)

20. Meal & Entertainment p. 570 50% limit (17, 18, 19)
70% limit for some transportation workers
Note – no deduction for most entertainment in 18

21. Rental Real Estate p. 570 IRC 469 allowance
25K (12,500 MFS liv. apart)
Phase-out K (50-75K MFS liv. apart)

22. Child and Dependent Credits p. 570
2018 Adoption 13,810
Phase out 207,140 to 247,140
2018 CTC up to 2K
Phase out 400K (MFJ), 200K (others)

23. CTC p. 571 New credit for dependent – 500 Refundable portion of CTC
Up to 1,400
2,500 earned income threshold
2018 child and dependent care credit up to 3K (6K for two or more)

24. EIC pp. 571-572 2017 amounts (p. 571) 2018 amounts (p. 572)
Min. credit 519
Max. credit 6,431
Phase out ranges (p. 572)

25. Education Benefits p. 573 2018 Coverdell contribution 2K
2018 AOTC 2,500
2018 lifetime learning 2K
2018 student loan interest deduction 2,500
Savings bond exclusion p. 574

26. Estate, Gift, Trust p. 574
2018 exclusion amount (estate, gift, GSTT) 11,180,000
Surviving spouse can elect portability
2018 annual gift exclusion 15K
Max 40% rate

27. Estates and Trusts p. 575 2018 exemption deductions:
600 estate, 300 simple trust, 100 complex trust
24,600 AMT exemption deduction
Begins phase out at 81,900
Estimated tax 90% current year or 100% prior year (110% for higher)

28. Fringe Benefits p. 575 Adoption assistance exclusion 13,810
Transportation assistance exclusion 260 parking and transit
No bicycle

29. Health Care p. 576 MSA deductibles HSA deductibles LTC deductibles
Note HSA contribution limit for family increased to 6,900

30. Health Care p. 577-578 Medicare 100% SE health ins. deduct
Part A deductibles and premiums
Part B deductible
Part D deductible varies
Part B premiums and deductibles (pp )
100% SE health ins. deduct

31. Individuals p. 579 AMT exemption amounts 109,400 – MFJ/QW
70,300 – single, HoH
54,700 – MFS
24,600 – T&E
Increased phaseout amts.

32. Individual p. 579 28% AMT rate on income over 191,100 (95,550 MFS)
NIIT threshold 250K MFJ, 200K single/HoH, 125K MFS, 12,500 T & E
No itemized deduction phaseout

33. Deductions p. 580 No 2018 personal/dependent exemptions
Standard deduction 24K MFJ/QW, 12K single/MFS, 18K HoH

34. Other Individual Rates p. 580
Estimated tax 90% current year or 100% prior year (110% higher income)
Foreign earned income exclusion 103,900

35. AFR pp. 581-583 Short-term is 3 yrs. or less Mid-term is 3 – 9 yrs.
Long-term is more than 9 yrs.

36. Interest Rates pp. 583-585 Blended annual rate
AFR for determining annuity
Farm Credit System Bank rates
Rates for over/underpayment

37. Retirement Plans pp. 585-586 2017 IRA limits (p. 585) 2018 IRA limits
5,500 contribution
1K make-up contribution

38. 2018 Retirement Plans p. 587 SIMPLE 12,500 457/401K 18,500 SEP 55,000
Defined benefit 220,000
Catch-up limits 3K SIMPLE, 6K all others

39. Saver’s Credit p. 588 2018 % up to 4K MFJ (2K others)
Max AGI 63K MFJ, 47,250 HoH, and 31,500 MFS/single/QW

40. Social Security/Medicare p. 589
2018 wage cap 128,400
Threshold for additional Medicare 250K MFJ (200K single/HoH/QW and 125K MFS)
Earnings ceiling for SS 1,420 before FRA

41. Other Info pp. 589-590 Credit for elderly/disabled
Kiddie tax unearned income over 2,100
7,000 FUTA wage base
IRS phone #s (p. 590)

42. Questions?