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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/Medicare20182017
Social Security Tax Wage Base$128,400$127,200
Medicare Tax Wage BaseNo limitNo limit
Employee portion of Social Security6.2%6.2%
Employee portion of Medicare1.45%1.45%
Individual Retirement Accounts20182017
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$1,000
Qualified Plan Limits20182017
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)$ 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 Deductions20182017
Business mileage, per mile54.5 cents53.5 cents
Charitable mileage, per mile14 cents14 cents
Medical and moving, per mile18 cents17 cents
Business Equipment20182017
Maximum Section 179 deduction$1,000,000$1,000,000
Phase out for Section 179$2.5 million$2.03 million
Transportation Fringe Benefit Exclusion20182017
Monthly commuter highway vehicle and transit pass$260$255
Monthly qualified parking$260$255
Standard Deduction20182017
Married filing jointly$24,000$12,700
Single (and married filing separately)$12,000$6,350
Heads of Household$18,000$9,350
Personal Exemption20182017
Personal Exemption Phaseout20182017
Married filing jointly and surviving spousesN/A*Begins at $313,800
Heads of HouseholdN/A*Begins at $287,650
Unmarried individualsN/A*Begins at $261,500
Married filing separatelyN/A*Begins at $156,900
Domestic Employees20182017
Threshold when a domestic employer must withhold and pay FICA for babysitters,                        house cleaners, etc.$2,100$ 2,000
Kiddie Tax20182017
Net unearned income not subject to the “Kiddie Tax”**$2,100$ 2,100
Estate Tax20182017
Federal estate tax exemption$11.2
Maximum estate tax rate40%40%
Annual Gift Exclusion20182017
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.


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