Mark Stevens, CFP®

2018 Key Numbers


Individual Income Tax Planning

Adoption credit

Adoption credit20172018
Maximum credit$13,570 $13,810
Phaseout threshold amount$203,540 $207,140
Completed phaseout amount after$243,540 $247,140

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount20172018
Married filing jointly or surviving spouse$84,500 $109,400
Single or head of household$54,300 $70,300
Married filing separately$42,250 $54,700
AMT income exemption phaseout threshold20172018
Married filing jointly or surviving spouse$160,900 $1,000,000
Single or head of household$120,700 $500,000
Married filing separately$80,450 $500,000
AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)20172018
All taxpayers except married filing separately$187,800 $191,100
Married filing separately$93,900 $95,550

Charitable deductions

Use of auto20172018
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20172018
Low-cost article (re: unrelated business income)$10.70$10.80
Gifts to donor in return for contribution20172018
Token gift maximum cost1$10.70 $10.80
Minimum contribution amount1$53.50 $54
2% threshold amount2$107$108

1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum

2 Charitable contribution is fully deductible if the benefit received by the donor doesn't exceed the lesser of the threshold amount or 2% of the amount of the contribution

Child tax credit

Amount of credit20172018
Maximum credit per qualifying child$1,000$2,000
Nonrefundable credit for dependents who are not qualifying childrenN/A$500
Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20172018
Married Filing Jointly$110,000$400,000
Married Filing Separately$55,000$200,000
Refundability -- up to specified percentage of earned income in excess of specified amount20172018
Maximum refundable amount of credit$1,000$1,400

Classroom expenses of elementary and secondary school teachers

Classroom expense deduction20172018
Maximum above-the-line deduction$250$250

Earned income tax credit (EITC)

Investment income limit20172018
Excessive investment income limit ("disqualified income limit")$3,450 $3,500
Maximum amount of EITC per number of children20172018
0 children$510 $519
1 child$3,400 $3,461
2 children$5,616 $5,716
3 or more children$6,318 $6,431
Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)20172018
0 children$6,670 $6,780
1 child$10,000 $10,180
2 or more children$14,040 $14,290
Threshold phaseout amount for joint filers per number of children20172018
0 children$13,930 $14,170
1 child$23,930 $24,350
2 children$23,930 $24,350
3 or more children$23,930 $24,350
Threshold phaseout amount for other filers per number of children20172018
0 children$8,340 $8,490
1 child$18,340 $18,660
2 children$18,340 $18,660
3 or more children$18,340 $18,660
Completed phaseout amount for joint filers per number of children20172018
0 children$20,600 $20,950
1 child$45,207 $46,010
2 children$50,597 $51,492
3 or more children$53,930 $54,884
Completed phaseout amount for other filers per number of children20172018
0 children$15,010 $15,270
1 child$39,617 $40,320
2 children$45,007 $45,802
3 or more children$48,340 $49,194


Covered expatriate20172018
An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)$162,000 $165,000
IRC §877A(3) exclusion amount$699,000 $711,000

Foreign earned income

Amount excluded from income20172018
Exclusion amount$102,100 $103,900

Itemized deductions

Phaseout threshold20172018
Married filing jointly$313,800 N/A
Head of household$287,650 N/A
Unmarried$261,500 N/A
Married filing separately$156,900 N/A

Kiddie tax

Unearned income limit20172018
Amount exempt from tax$1,050 $1,050
Additional amount taxed at child's rate$1,050 $1,050
Unearned income over this amount taxed at parent's rate (in 2018, taxed at trust and estate income tax rates)$2,100 $2,100
Parent's election20172018
Election to include child's income on parent's return -- child's gross income requirement$1,050 - $10,500 N/A
AMT exemption for child subject to kiddie taxLesser of $7,500 + child's earned income or $54,300 Lesser of $7,600 + child's earned income or $70,300

Medicare tax (additional payroll tax and unearned income contribution tax)

Payroll tax20172018
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20172018
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20172018
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20172018
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20172018
Domestic employee coverage threshold$2,000$2,100

Personal exemption amount

Personal exemption amount$4,050 N/A
Married filing jointly20172018
Phaseout threshold amount$313,800 N/A
Completed phaseout amount after$436,300 N/A
Head of household20172018
Phaseout threshold amount$287,650 N/A
Completed phaseout amount after$410,150 N/A
Phaseout threshold amount$261,500 N/A
Completed phaseout amount after$384,000 N/A
Married filing separately20172018
Phaseout threshold amount$156,900 N/A
Completed phaseout amount after$218,150 N/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20172018
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20172018
Joint Return$0 - $37,000 $0 - $38,000
Head of Household$0 - $27,750 $0 - $28,500
Other$0 - $18,500 $0 - $19,000
Applicable percentage of 20% applies to AGI20172018
Joint Return$37,001 - $40,000 $38,001 - $41,000
Head of Household$27,751 - $30,000 $28,501 - $30,750
Other$18,501 - $20,000 $19,001 - $20,500
Applicable percentage of 10% applies to AGI20172018
Joint Return$40,001 - $62,000 $41,001 - $63,000
Head of Household$30,001 - $46,500 $30,751 - $47,250
Other$20,001 - $31,000 $20,501 - $31,500
Applicable percentage of 0% applies to AGI20172018
Joint ReturnOver $62,000 Over $63,000
Head of HouseholdOver $46,500 Over $47,250
OtherOver $31,000 Over $31,500

Standard deductions

Married filing jointly or surviving spouse$12,700 $24,000
Head of household$9,350 $18,000
Unmarried$6,350 $12,000
Married filing separately$6,350 $12,000
Dependent--Standard deduction cannot exceed the greater of:$1,050 or $350 + earned income $1,050 or $350 + earned income
Additional deduction for aged or blind (single or head of household)$1,550 $1,600
Additional deduction for aged or blind (all other filing statuses)$1,250 $1,300

Standard mileage rates

Applicable rates 20172018
Use of auto for business purposes (cents per mile)$0.535$0.545
Use of auto for medical purposes (cents per mile)$0.17$0.18
Use of auto for moving purposes (cents per mile)$0.17$0.18

This communication is strictly intended for individuals residing in the state(s) of GA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.