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
Did someone file a fraudulent return in your name? Get the facts about reporting tax identity theft to the IRS and what you can expect after you report it.
The IRS has contacted third parties to help figure out what you owe. Learn more about letter 3173 from the tax experts at H&R Block.
The IRS adjusted your Shared Responsibility Payment and you owe taxes. Learn about notice CP22H and how to address it with help from the experts at H&R Block.
The discrepancy between your name and your Taxpayer Identification Number has been corrected. Learn more from the tax experts at H&R Block.