The Internal Revenue Service has declared the tax rate schedules, tax tables, and cost-of-living adjustments for certain tax items for the year 2018. The IRS tax tables come out at the very end of the year, but it is effortless to find your income and pick the right box locate and mark it. These numbers are applicable for the tax year 2018; hence, they are effective from January 1, 2018. It includes tax rate schedules, cost of living adjustments for certain tax items, and tax tables.

The 2018 IRS tax tables are the numbers that you will be using to file your tax returns with IRS Tax Form 1040. If you are going to be paid more, get married, or are buying a house, or having a baby or changing your lifestyle in any way, then you will want to make changes to your tax payment. The various aspects of the 2018 IRS tax tables are explained below.

Standard Deduction
For singles and married filing separate returns, the deduction is as per the 2018 IRS tax tables is $6,500; for married filing jointly, the standard deduction is $13,000. For household heads, the deduction is $9,550 as a part of 2018 IRS tax tables.

Additional standard deduction
This amount for the aged and/or blind is $1,300. As per this year’s IRS tax tables, the standard deduction for someone who claims to be a dependent by another taxpayer cannot exceed (a) $1,050 or (b) $350 + the dependent’s earned income.

For those who itemize their deductions, Pease limitations may cap/phase out certain deductions for high-income taxpayers. If Pease is applicable, then the total of your itemized deductions is reduced to lesser of 3% of adjusted gross income above the limitations or 80% of the amount of itemized deductions otherwise allowed for the tax year. Pease applies to charitable donations, home mortgage interest deduction, state and local tax deductions, and miscellaneous itemized deductions. Pease does not apply to investment expenses, medical expenses, gambling loss, theft, and casualties.

Personal exemption
The personal exemption amount as per the 2018 IRS tax tables is $4,150. This is subject to phase-out that begins with adjusted gross income of $266,700 ($320,000 for married couples). It phases out completely at $389,200 ($442,50 for married couples).

AMT exemption
These amounts are permanently adjusted for inflation; hence AMT is in this list. AMT exemption amounts are as follows.

• Kiddie tax
  It applies to the unearned income for children under 19 and college students under 24. 2018 tax tables, the threshold, i.e., the amount of unearned income a child can take home without paying any federal income tax, is $1,050. All unearned income over the amount of $2,100 is taxed according to parent’s tax rate.

Tax credits for 2018 tax tables rates

• Earned Income Tax Credit (EITC)
  The maximum EITC available amount is $6,444 for taxpayers who file returns jointly and have three or more children. There is a table that provides maximum credit amounts for other categories, income limitations, and phase-outs.
• Child & Dependent Care Credit
  The amount of credit that may be refundable is $3,000 (the credit amount has not changed). The value of expenses used to determine the credit and not the actual amount of the credit.
• Adoption Credit
  There is credit allowed for an adoption of a child with special needs, and it is $13,840. The maximum credit for other adoptions is also up to $13,840. Phaseout applies to modified adjusted gross income (MAGI) more than $207,580 and is completely phased out for taxpayers with MAGI of $247,580 or more.
• Hope Scholarship Credit
  This will remain equal to 100% for qualified tuition and related expenses not more than $2,000 plus 25% on expenses more than $2,000 but not over $4,000. Maximum Hope Scholarship Credit allowed for 2018 is $2,500.
• Lifetime Learning Credit
  There are income restrictions on Lifetime Learning Credit. The adjusted gross income used to determine the reduction in Lifetime Learning Credit is $57,000 ($114,000 for joint filers).

Changes have been made in tax deductions, deferrals, and exclusions for 2018 IRS tax tables:

• Student Loan Interest Deduction
  The maximum deduction you can take on student loans remains at $2,500. Phaseouts are applied on modified adjusted gross income (MAGI) which are more than $65,000 ($135,000 for joint returns) and is completely phased out for taxpayers with that have modified adjusted gross income (MAGI) of $80,000 or more ($165,000 or more for joint returns).
• Foreign Earned Income Exclusion
  As per the 2018 IRS tax tables foreign earned income exclusion is $104,100.
• Transportation and Parking Benefits
  Monthly limitation for qualified transportation is $260, for transportation in a commuter highway vehicle/transit pass, and qualified parking.
• Medical Savings Accounts
  In the high deductible health plan customers who have a self only cover in a Medical Savings Account, the annual deductible is not less than $2,300 and not more than $3,450. For a self-only cover, the pocket expense amount is $4,500. For customers with family cover, an annual deduction is not less than $4,600 but not more than $6,850. For the family cover, the pocket expense is $8,400.

Above are the IRS tax tables of 2018 and how the deductions and exemptions go about.