Your Guide to 2018 Tax Changes
Every year the IRS announces updates to the following year's tax brackets, deductions, and other important numbers. Given that the GOP is working to pass tax reform as soon as possible, these numbers (along with much of the rest of the tax code) may be subject to change -- but for now, here's where you'll stand when the time comes to prepare your 2018 taxes.
While tax rates generally remain the same from year to year, the income levels for each tax bracket often change to compensate for inflation and other factors. You can find a complete breakdown of all the 2018 tax brackets here.
The standard deduction for various filing statuses has increased slightly for 2018: It's now $13,000 for married taxpayers filing jointly, $6,500 for single and married-filing-separately taxpayers, and $9,550 for heads of household. For those who choose to itemize their deductions, the limitation on itemizing for 2018 starts at an adjusted gross income (AGI) of $320,000 for married taxpayers filing jointly and $266,700 for everyone else; if your earnings are above your threshold, any itemized deductions you claim will be reduced.
Source: Fool.com
