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LivingStone Wealth Planning

T. Spencer Metcalf, MBA, CFP®
President
104 Whitsett Street
Greenville, SC 29601
864-520-8000
spencer@livingstonewealth.com
www.livingstonewealth.com

T. Spencer Metcalf's Profile Picture

July 26, 2018

2018 Key Numbers
 

Individual Income Tax Planning

Adoption credit

Adoption credit20232024
Maximum credit$15,950$16,810
Phaseout threshold amount$239,230$252,150
Completed phaseout amount after$279,230$292,150

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount20232024
Married filing jointly or surviving spouse$126,500$133,300
Single or head of household$81,300$85,700
Married filing separately$63,250$66,650
AMT income exemption phaseout threshold20232024
Married filing jointly or surviving spouse$1,156,300$1,218,700
Single or head of household$578,150$609,350
Married filing separately$578,150$609,350
AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)20232024
All taxpayers except married filing separately$220,700$232,600
Married filing separately$110,350$116,300

Charitable deductions

Use of auto20232024
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20232024
Low-cost article (re: unrelated business income)$12.50$13.20
Gifts to donor in return for contribution20232024
Token gift maximum cost1$12.50 $13.20
Minimum contribution amount1$62.50 $66.00
2% threshold amount2$125$132

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 credit20232024
Maximum credit per qualifying child$2,000 $2,000
Nonrefundable credit for dependents who are not qualifying children$500 $500
Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over (but not to be reduced below $2,000):20232024
Married filing jointly or surviving spouseN/AN/A
Head of householdN/AN/A
Single or married filing separatelyN/AN/A
Phaseout -- any remaining credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20232024
Married filing jointly$400,000$400,000
All other filing status$200,000$200,000
Refundability -- up to specified percentage of earned income in excess of specified amount20232024
Percentage15%15%
Amount$2,500 $2,500
Maximum refundable amount of credit$1,600 $1,700

Classroom expenses of elementary and secondary school teachers

Classroom expense deduction20232024
Maximum above-the-line deduction$300$300

Earned income tax credit (EITC)

Investment income limit20232024
Excessive investment income limit ("disqualified income limit")$11,000 $11,600
Maximum amount of EITC per number of children20232024
0 children$600$632
1 child$3,995$4,213
2 children$6,604$6,960
3 or more children$7,730$7,830
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)20232024
0 children$7,840$8,260
1 child$11,750$12,390
2 or more children$16,510$17,400
Threshold phaseout amount for joint filers per number of children20232024
0 children$16,370$17,250
1 child$28,120$29,640
2 children$28,120$29,640
3 or more children$28,120$29,640
Threshold phaseout amount for other filers per number of children20232024
0 children$9,800$10,330
1 child$21,560$22,720
2 children$21,560$22,720
3 or more children$21,560$22,720
Completed phaseout amount for joint filers per number of children20232024
0 children24,210$25,511
1 child$53,120$56,004
2 children$59,478$62,688
3 or more children$63,398$66,819
Completed phaseout amount for other filers per number of children20232024
0 children$17,640$18,591
1 child$46,560$49,084
2 children$52,918$55,768
3 or more children$56,838$59,899

Expatriation

Covered expatriate20232024
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)$190,000 $201,000
IRC §877A(3) exclusion amount$821,000 $866,000

Foreign earned income

Amount excluded from income20232024
Exclusion amount$120,000$126,500

Itemized deductions

Phaseout threshold20232024
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A

Kiddie tax

Unearned income limit20232024
Amount exempt from tax$1,250 $1,300
Additional amount taxed at child's rate$1,250 $1,300
Unearned income over this amount generally taxed at parents' tax rates$2,500$2,600
Parent's election20232024
Election to include child's income on parent's return -- child's gross income requirement$1,250 - $12,500$1,300 - $13,000
AMT20232024
AMT exemption for child subject to kiddie taxLesser of $8,800 + child's earned income or $81,300Lesser of $9,250 + child's earned income or $85,700

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

Payroll tax20232024
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20232024
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20232024
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20232024
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20232024
Domestic employee coverage threshold$2,600 $2,700

Personal exemption amount

Amount20232024
Personal exemption amountN/A N/A
Married filing jointly20232024
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Head of household20232024
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Unmarried20232024
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Married filing separately20232024
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/AN/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20232024
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20232024
Joint Return$0 - $43,500$0 - $46,000
Head of Household$0 - $32,625$0 - $34,500
Other$0 - $21,750$0 - $23,000
Applicable percentage of 20% applies to AGI20232024
Joint Return$43,501 - $47,500$46,001 - $50,000
Head of Household$32,626 - $35,625$34,501 - $37,500
Other$21,751 - $23,750$23,001 - $25,000
Applicable percentage of 10% applies to AGI20232024
Joint Return$47,501 - $73,000$50,001 - $76,500
Head of Household$35,626 - $54,750$37,501 - $57,375
Other$23,751 - $36,500$25,001 - $38,250
Applicable percentage of 0% applies to AGI20232024
Joint ReturnOver $73,000Over $76,500
Head of HouseholdOver $54,750Over $57,375
OtherOver $36,500Over $38,250

Standard deductions

Amounts20232024
Married filing jointly or surviving spouse$27,700$29,200
Head of household$20,800$21,900
Unmarried$13,850$14,600
Married filing separately$13,850$14,600
Dependent--Standard deduction cannot exceed the greater of:$1,250 or $400 + earned income$1,300 or $450 + earned income
Additional deduction for aged or blind (single or head of household)$1,850$1,950
Additional deduction for aged or blind (all other filing statuses)$1,500$1,550

Standard mileage rates

Applicable rates 20232024
Use of auto for business purposes (cents per mile) $0.655$0.67
Use of auto for medical purposes (cents per mile) $0.22$0.21
Use of auto for moving purposes (cents per mile) $0.22$0.21
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