While the Tax Cuts and Jobs Act (TCJA) generally reduced
individual tax rates for 2018 through 2025, some taxpayers could see their
taxes go up due to reductions or eliminations of certain tax breaks â€” and, in
some cases, due to their filing status. But some may see additional tax savings due to their filing
Unmarried vs. Married Taxpayers
In an effort to further eliminate the marriage â€śpenalty,â€ť the
TCJA made changes to some of the middle tax brackets. As a result, some single
and head of household filers could be pushed into higher tax brackets more
quickly than pre-TCJA. For example, the beginning of the 32 percent bracket for
singles for 2018 is $157,501, whereas it was $191,651 for 2017 (though the rate
was 33 percent). For heads of households, the beginning of this bracket has
decreased even more significantly, to $157,501 for 2018 from $212,501 for 2017.
Married taxpayers, on the other hand, wonâ€™t be pushed into some
middle brackets until much
higher income levels for 2018 through 2025. For example, the
beginning of the 32 percent bracket for joint filers for 2018 is $315,001,
whereas it was $233,351 for 2017 (again, the rate was 33 percent then).
2018 Filing and 2019 Brackets
Because there are so many variables, it will be hard to tell
exactly how specific taxpayers will be affected by TCJA changes, including
changes to the brackets, until they file their 2018 tax returns. In the
meantime, itâ€™s a good idea to begin to look at 2019. As before the TCJA, the
tax brackets are adjusted annually for inflation.
Below is a look at the 2019 brackets under the TCJA.
Contact us for help assessing what your tax rate likely will be for 2019 â€” and for help filing your 2018 tax return.