I am not a tax attorney. Since the tax reform affects everyone who pays taxes, I thought I should share it. The Republican Tax Cut & Jobs Act (tax reform) the 2018 tax brackets, tax rates and standard deduction amounts have been revised. Many are still focusing on the 2017 taxes for tax filing purposes, but these have not been impacted by the by the tax reform. So, it is on to the 2018 tax brackets, which are below:
| tax rates | single filer tax bracket | married filing jointly tax bracket | married filing separately tax bracket | head of household bracket |
| 10% | $0-$9525 | $0-19,050 | $0-9525 | $0-13,600 |
| 12% | $9,525-38,700 | $19,050-77,400 | $9525-38,700 | $13,600-51,800 |
| 22% | $38,700-82,500 | $77,400-165,000 | $38,700-82,500 | $51,800-82,500 |
| 24% | $82,500-157,500 | $165,000-315,000 | $82,500-157,500 | $82,500-157,500 |
| 32% | $157,500-200,00 | $315,000-400,000 | $157,500-200,000 | $157,500-200,000 |
| 35% | $200,000-500,000 | $400,000-600,000 | $200,000-$300,000 | $200,000-500,000 |
| 37% | $500,000+ | $600,000+ | $300,000+ | $500,000+ |
Note that the personal exemption amount is eliminated. The standard deduction and exemption amounts have changed as well. They are:
| filing status | deduction amount |
| single | $12,000 |
| married filing separately | $12,000 |
| married filing jointly | $24,000 |
| head of household | $18,000 |
| personal exemption | $0 |
If you have any questions regarding estate planning issues, please contact Anna M. Petronzio. apetronzio@ps-law.com, 216-381-3400.