AMOUNTS for tax returns in 2018 are compared with amounts in 2017.
Exemption credits:
a. $118 from $114 – Single, Married filing separately, Head of Household.
b. $236 from $228 – Married filing jointly.
c. $367 from $353 – Dependent.
d. $118 from $114 – Age 65 or older.
You are considered to be 65 at the end of 2017 if you turn 65 in January 1, 2018.
Exemption credits are phased out by $6 or $12 for each $1,250 or $2,500 that federal AGI exceeds certain amounts over $194,504 from $187,203.
Itemized deductions are also phased out if federal AGI exceeds certain amounts over $187,203 from $182.459.
Standard deductions:
a. $4,401 from $4,2,36 – Single and filing married filing separate.
b. $8,802 from $8,472 – Married filing joint, head of household, surviving spouse.
c. $1,050 from $1,050 – Minimum standard deduction for dependents.
Non-refundable enter’s credit:
a. $60 – Single or married filing separate with California AGI of $41,641 or less from $40,078 or less.
b. $120 – Married filing joint, head of household, or surviving spouse with California AGI of $83,282 from $80,156 or less.
Individual tax rates:
a. 12.30% – Maximum rate for regular income tax.
b. 7.00% – Alternative Minimum Tax (AMT).
c. 1.00% – The Mental Health Services Tax Rate for taxable income in excess of $1,000,000.
Corporate tax rates:
a. 8.84% – Income tax rate for regular C corporations.
b. 1.50% – Income tax rate for S corporations.
c. 6.65% – AMT rate for regular C corporations.
AMT exemptions:
a. $47,685 from $45,895- Married filing separate, estates, and trusts.
b. $71,531 from $68,846 – Single and head of household.
c. $95,373 from $91,793 – Married filing joint, surviving spouse.
FTB (Franchise Tax Board) recovery fees:
a. $81 – Personal income tax filing enforcement fee.
b. $266 – Personal income tax collection fee.
c. $100 – Corporation filing enforcement fee.
d. $365 – Corporation collection fee.
Miscellaneous credits
a. 2% of California taxable income or maximum credit of $1,434 from $1,380 – Qualified senior head of household credit with maximum California AGI of $76,082.
b. 30% of net tax or maximum credit of 451- Joint custody head of household credit/dependent parent credit.
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Disclaimer: Any accounting, business or tax advice contained in this communication is neither intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.
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Al-os & Associates Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies.