The Internal Revenue Service issued newly updated tax tables and inflation adjustments for the new tax law.
In
Married couples who earn less than $19,050 pay a 10 percent rate, while a 12 percent rate applies to income between $19,050 and $77,400, 22 percent for income between $77,400 and $165,000, 24 percent for income between $165,000 and $315,000, 35 percent for income between $400,000 and $600,000, and 37 percent for income over $600,000. The IRS also provided updated tax tables for other singles, heads of households, and other statuses.
The revenue procedure also adjusts some of the other previously announced income limits. For the Earned Income Tax Credit, it’s $10,180 for taxpayers with one child, and $14,290 for two or more children, and $6,780 for none. For the adoption credit, the credit for adopting a child with special needs is $13,810, a change from the previous amount of $13,840, according to the
The document also provides the inflation-adjusted amounts for health savings accounts. For calendar year 2018, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,450, and the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,850. For 2018, a “high deductible health plan” is defined as a health plan with an annual deductible no less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses don’t exceed $6,650 for self-only coverage or $13,300 for family coverage.
In January, the IRS also released new withholding tables for the Tax Cuts and Jobs Act (see