Federal Tax Updates
Here’s what’s new for 2018:
- Alternative Minimum Tax (AMT) exemption amounts increased:
- IRA deduction expanded — You might be able to claim a deduction if both of these apply:
- You were covered by a retirement plan.
- Your income was less than $71,000 — or $118,000 for married filing jointly or qualifying widow(er)
If your spouse was covered by a retirement plan but you weren’t, you might be able to claim a deduction. Your income has to be less than $193,000 to claim a deduction in this case.
- Current standard mileage rates:
- $0.545 a mile for business use of a vehicle
- 23.5 cents a mile for medical care
- Earned Income Credit (EIC) maximum income changes are:
- Three or more children lived with you and you earned less than $47,747 — or $53,267 if married filing jointly
- Two children lived with you and you earned less than $45,802 — or $49,974 if married filing jointly
- One child lived with you and you earned less than $40,320 — or $44,651 if married filing jointly
- No children lived with you and you earned less than $15,270 — or $20,330 if married filing jointly
- The maximum investment income you can earn and still get the EIC increased to $3,500.
- Elective salary deferrals:
- No exceptions — maximum amount is $18,000
- SIMPLE plans only — maximum amount is $12,500
- 403(b) plans and qualify for the 15-year rule — maximum amount is $21,000
- Catch-up contributions for taxpayers age 50 or over has increased to $6,000. Exceptions include for Section 401(k)(11) and SIMPLE plans
Need help deciding if you need to file an amended return (IRS Form 1040X)? Get the facts from the tax experts at H&R Block.
If you’ve received unemployment compensation or a state tax refund, you’ll receive Form 1099-G. Learn more about Form 1099-G and how it affects your taxes.
Donating a qualified vehicle to a charity? Learn how Form 1098-C is used to report the details of your donation and how it affects your deduction.
Learn more about your options to reduce or remove an IRS estimated tax penalty. Get the facts from the tax experts at H&R Block.