• 2018 Social Security wage base is $128,400. (increases to $132,900 in 2019)
• There is no earnings limit for the Medicare tax.
• Self-employed:
  • 2018 self-employment tax rate is 15.3%, which equals the Social Security rate of 12.4% plus the Medicare tax rate of 2.9%.
  • The 15.3% rate applies to earnings up to $128,400 after the earnings are reduced by 7.65% on Schedule SE, Section A, line 4 or Section B, Part I, line 4a.
  • The 2.9% Medicare rate applies to gross earnings from the first dollar. There is no earnings limit for the Medicare tax.
  • Fifty percent (50%) of the self-employment tax is deducted on the first page of Form 1040 as an above-the-line deduction, which serves to reduce adjusted gross income (AGI).
• Employer/Employee:
  • 2018 Total Social Security Rate: 12.4%
    • Employer share: 6.2%
    • Employee share: 6.2%.
    • The maximum amount of social security tax withholding for an employee should not exceed $7,960.80.
    • The maximum amount of Social Security tax an employer contributes on behalf of each employee should not exceed $7,960.80.
  • 2018 Total Medicare tax rate: 2.9%
    • Employer: 1.45%
    • Employee: 1.45%

For tax years after 2017, you can no longer claim a personal exemption for yourself, your spouse or your dependents.

• Married filing Joint return: $24,000
• Qualifying widow(er): $24,000
• Head of household: $18,000
• Single: $12,000
• Married filing separately: $12,000
• Dependents - minimum deduction: $1,050
• Additional Deduction if Age 65 or Older, or Blind. If you turned 65 on January 1, 2019, you are considered to be 65 as of December 31, 2018 for purposes of claiming this deduction. The larger deduction for blindness is allowed regardless of age.
  • Married-per-spouse, filing jointly or separately:
    • $1,300 ($2,600 for age and blindness)
  • Qualifying widow(er):
    • $1,300 ($2,600 for age and blindness)
  • Single or head of household:
    • $1,600 ($3,200 for age and blindness)

Collectibles gain-maximum rate: 28%

Unrecaptured Section 1250 gain on depreciated real estate-maximum rate: 25%

• Business: 54.5 cents per mile
• Medical: 18 cents per mile
• Moving expenses for member of U.S. Armed Forces on active duty who move pursuant to a military order and incident to a permanent change of station: 18 cents per mile
• Charitable volunteers: 14 cents per mile (unchanged)[

• Free parking, transit passes, and van pooling: $260 per month

Traditional IRAs:

• Traditional IRA contribution limit: $5,500
• Additional contribution if age 50 or older but under 70 1/2: $1,000
• Deduction phaseout for active plan participant:
  • Single or head of household: $63,000 - $72,000
  • Married filing jointly, two participants: $101,000 - $121,000
  • Married filing jointly, one participant:
    • Participant spouse: $101,000 - $121,000
    • Non-participant spouse: $189,000 - $199,000
    • Married filing separately, live together, either participates:
      • $0 - $10,000
  • Married filing separately, live apart all year:
    • Participant spouse: $63,000 - $73,000
    • Non-participant spouse: no phaseout

Roth IRAs:

• Roth IRA contribution limit: $5,500
• Additional contribution if age 50: $1,000
• Contribution limit phaseout range:
  • Single, head of household: $120,000 - $135,000
  • Married filing separately, live apart all year: $120,000 - $135,000
  • Married filing jointly, or qualifying widow(er): $189,000 - $199,000
  • Married filing separately, live together at any time: $0 - $10,000

• 401(k), 403(b), 457 plans: $18,500
• Salary-reduction SEP: $18,500
• SIMPLE IRA: $12,500
• Additional contribution if age 50 or older (catch-up contributions):
  • 401(k), 403(b), governmental 457 and SEP plans: $6,000
  • SIMPLE IRA: $3,000

• American Opportunity credit limit-per student: $2,500
• Lifetime Learning credit limit-per-taxpayer: $2,000
• Phaseout of American Opportunity credit:
  • Married filing jointly: $160,000 - $180,000
  • Single, head of household, or qualifying widow(er): $80,000 - $90,000
• Phaseout of Lifetime Learning credit:
  • Married filing jointly: $114,000 - $134,000
  • Single, head of household, or qualifying widow(er): $57,000 - $67,000
• Student loan interest deduction limit: $2,500
  • Phaseout of deduction limit:
    • Married filing jointly: $135,000 - $165,000
    • Single, head of household, qualifying widow(er): $65,000-$80,000
• Coverdell ESA limit: $2,000
  • Phaseout of limit:
    • Married filing jointly: $190,000 - $220,000
    • All others: $95,000 - $110,000
• Tuition and fees deduction (if extended to 2018 by Congress):
• These deductions have expired for tax years beginning after December 31, 2017. However, they are listed in the event further legislation is passed to extend them. We'll keep checking on this.
  • Tuition and fees deduction: tier 1 limit Income cut-off $4,000
    • Married filing jointly: $130,000
    • Single, head of household, or qualifying widow(er): $65,000
  • Tuition and fees deduction: tier 2 limit Income cut-off: $2,000
    • Married filing jointly: $160,000
    • Single, head of household, or qualifying widow(er): $80,000

• Limit on premium allowed as medical expense
  • Age 40 or under: $420
  • Over 40 but not over 50: $780
  • Over 50 but not over 60: $1,560
  • Over 60 but not over 70: $4,160
  • Over 70: $5,200

For qualifying property placed in service in 2018, first-year expensing is allowed up to a limit of $1 million. The limit begins to phase out if the total cost of qualifying property exceeds $2.5 million.

Section 179 Deduction Phase-out:

If the cost of qualifying property placed in service in 2018 is more than $2,500,000, you reduce the $1,000,000 expensing limit dollar-for-dollar for each dollar the cost of qualifying property exceeds $2,500,000 (but not below zero).

For example, if you place machinery in service during 2018 costing $2,600,000, the $1,000,000 deduction limit is reduced by $100,000 to $900,000, which is entered on Form 4562, Line 5 of Part 1 (labeled "Dollar limitation for tax year.")

If the cost of the property was $3,500,000 or more, no first-year expensing deduction is allowed for 2018 because it would be completely phased out.

2018 Bonus Depreciation (Section 168(k):

The bonus depreciation rate for 2018 is 100%. Bonus depreciation is also called a Section 168(k) allowance and a special depreciation allowance