Porte Brown Logo
Porte Brown Wealth Management
Check us out on BrokerCheck
®

Important Tax Figures for 2018

The following table provides some important federal tax information for 2018, as compared with 2017. Many of the dollar amounts are unchanged and some changed only slightly due to inflation.

Social Security Medicare

2018

2017

Social Security Tax Wage Base

$128,400

$127,200

Medicare Tax Wage Base

No limit

No Limit

Employee portion of Social Security

6.2%

6.2%

Employee portion of Medicare

1.45%

1.45%

Individual Retirement Accounts

2018

2017

Roth IRA Individual, up to 100% of earned income

$5,500

$5,500

Traditional IRA Individual, up to 100% of earned Income

$5,500

$5,500

Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older

$1,000

$1,000

Qualified Plan Limits

2018

2017

Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)

$55,000

$54,000

Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))

$220,000

$215,000

Maximum compensation used to determine contributions

$275,000

$270,000

401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))

$18,500

$18,000

401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older

$6,000

$6,000

SIMPLE deferrals (Section 408(p)(2)(A))

$12,500

$12,500

SIMPLE additional "catch-up" contributions for employees age 50 and older

$3,000

$3,000

Compensation defining highly compensated employee (Section 414(q)(1)(B))

$120,000

$120,000

Compensation defining key employee (officer)

$175,000

$175,000

Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))

$600

$600

Driving Deductions

2018

2017

Business mileage, per mile

54.5 cents

53.5 cents

Charitable mileage, per mile

14 cents

14 cents

Medical and moving, per mile

18 cents

17 cents

Business Equipment

2018

2017

Maximum Section 179 deduction

$1,000,000

$510,000

Phase out for Section 179

$2.5 million

$2.03 million

Transportation Fringe Benefit Exclusion

2018

2017

Monthly commuter highway vehicle and transit pass

$260

$255

Monthly qualified parking

$260

$255

Standard Deduction

2018

2017

Married filing jointly

$24,000

$12,700

Single (and married filing separately)

$12,000

$6,350

Heads of Household

$18,000

$9,350

Personal Exemption

2018

2017

Amount

N/A*

$4,050

Personal Exemption Phaseout

2018

2017

Married filing jointly and surviving spouses

N/A*

Begins at $313,800

Heads of Household

N/A*

Begins at $287,650

Unmarried individuals

N/A*

Begins at $261,500

Unmarried individuals

N/A*

Begins at $261,500

Married filing separately

N/A*

Begins at $156,900

Domestic Employees

2018

2017

Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.

$2,100

$2,000

Kiddie Tax

2018

2017

Net unearned income not subject to the "Kiddie Tax"

**$2,100

$2,100

Estate Tax

2018

2017

Federal estate tax exemption

$11.2 million***

$5.49 million

Maximum estate tax rate

40%

40%

Gift Tax Exclusion

2018

2017

Amount you can give each recipient

$15,000

$14,000

*The Tax Cuts and Jobs Act (TCJA) eliminates the personal exemption beginning in 2018.
**The TCJA changes the way the Kiddie Tax is imposed.
***The TCJA raises the estate tax exemption to $10 million for 2018. Adjusted for inflation this exemption is expected to be $11.2 million.
Questions?
Let us know how we can help.

We Help You Get to Your Next Level

Get in touch today and find out how we can help you meet your objectives.

CALL US

You are now leaving the Porte Brown LLC website. PrimeGlobal.net
Porte Brown Newsletter Porte Brown Newsletter