Quick Reference Guide for 2019 and 2018 Federal Taxes
The following guide includes many of the most important federal tax amounts for 2019 and compares them to the amounts currently applicable for 2018 tax returns.
| Federal Income Tax Rates | 2019 | 2018 1 |
| Maximum individual income tax rate | 37% | 37% |
| Individual tax rates (seven brackets) | 10%, 12%, 22%, 24%,32%, 35%, 37% | 10%, 12%, 22%, 24%, 32%, 35%, 37%2 |
| Taxable income beyond which top rate begins:Married filing jointly and surviving spouseSingleHead of householdMarried filing separately | $612,350$510,300$510,300$306,175 | $600,000$500,000$500,000$300,000 |
| Maximum rate for qualified capital gains and dividends | 20% | 20% 3 |
| Maximum corporate income tax rate | 21% | 21% |
| Standard Deduction | 2019 | 2018 |
| Married filing jointly and surviving spouse | $24,400 | $24,000 |
| Single and married filing separately | $12,200 | $12,000 |
| Head of household | $18,350 | $18,000 |
| Alternative Minimum Tax (AMT) Exemption Amounts | 2019 | 2018 |
| Exemption, married filing jointly and surviving spouse(Phase-out begins) | $111,700($1,020,600) | $109,400($1,000,000) |
| Exemption, single(Phase-out begins) | $71,700($510,300) | $70,300($500,000) |
| Exemption, married filing separately(Phase-out begins) | $71,700($510,300) | $70,300($500,000) |
| Exemption, estates and trusts(Phase-out begins) | $25,000($83,500) | $24,600($82,050) |
| Health Savings Account Contribution Limits | 2019 | 2018 |
| Individual Plan | $3,500 | $3,450 |
| Family Plan | $7,000 | $6,900 |
| 55+ Additional | $1,000 | $1,000 |
| Deductions | 2019 | 2018 |
| Deduction for pass-through entities 4Percentage of qualified business incomeLimit: 50% W-2 wages, or 25% wages + 2.5% of property’s unadjusted basis | 20% | 20% |
| Deduction for state and local taxesSales or state income taxesDeduction for property taxes | $10,000 total | $10,000 total |
| Deduction for medical expenses | >10% of AGI | >7.5% of AGI 5 |
| Maximum cash donations to public charities (income-based limit) | 60% | 60% |
| Maximum mortgage debt for mortgage interest deduction | $750,000 | $750,000 6 |
| Maximum nontaxable IRA distributions to charities, if at least age 70 ½ | $100,000 | $100,000 |
| Maximum deduction for teacher classroom expenses | $250 | $250 |
| Maximum American Opportunity education credit | $2,500 | $2,500 |
| Driving deductions, per mile:Business mileageCharitable mileageMedical and moving mileage | PendingPendingPending | 54.5¢14.0¢18.0¢ |
| Deduction for alimony | None 7 | Not limited |
| Business Equipment | 2019 | 2018 |
| Maximum Section 179 expense deduction | $1,020,000 | $1,000,000 |
| Phase-out for Section 179, based on asset additions | $2,550,000 | $2,500,000 |
| Bonus first-year depreciation | 100% | 100% 8 |
| Qualified Transportation Fringe Benefit Exclusion 9 | 2019 | 2018 |
| Commuter highway vehicle and transit pass, per month | $265 | $260 |
| Qualified parking, per month | $265 | $260 |
| Domestic Employees | 2019 | 2018 |
| Annual threshold when a domestic employer is liable to withhold and pay FICA for babysitters, housekeepers, etc. | $2,100 | $2,100 |
| Kiddie Tax | 2019 | 2018 |
| Net unearned income not subject to kiddie tax | $2,200 | $2,100 |
| Earned income tax rate | Single individual | Single individual |
| Net unearned income tax rate | Trust and estate | Trust and estate |
| Exclusions and Credits | 2019 | 2018 |
| Exclusion of gain on qualified small business stock (QSBS) | 100% | 100% |
| Exclusion of foreign income | $105,900 | $103,900 |
| Child tax credit, per child | $2,000 with$1,400 refundable | $2,000 with$1,400 refundable |
| Federal Estate and Gift Tax | 2019 | 2018 |
| Maximum tax rate | 40% | 40% |
| Estate/gift exemption amount (double for married couple) | $11.4 million | $11.18 million |
| Annual gifting limit, per recipient (double for married couple) | $15,000 | $15,000 |
| Miscellaneous | 2019 | 2018 |
| Affordable Care Act insurance mandate | Repealed | Required |
| Hospital insurance tax (on income > $250,000 for married couplesand $200,000 for single persons) | 0.9% | 0.9% |
| Social Security and Medicare | 2019 | 2018 |
| Social Security taxable wage base | $132,900 | $128,400 |
| Social Security tax:EmployeeSelf-employed | 6.2%12.4% | 6.2%12.4% |
| Medicare taxable wage base | No limit | No limit |
| Medicare tax:EmployeeSelf-employed | 1.45%2.9% | 1.45%2.9% |
| Medicare surtax on net investment income | 3.8% | 3.8% |
| Individual Retirement Accounts | 2019 | 2018 |
| Individual IRA, up to 100% of earned income (combined limit for traditional and/or Roth) | $6,000 | $5,500 |
| Additional annual catch-up contributions for account owners, age 50 and older (Roth and traditional IRA) | $1,000 | $1,000 |
| Annual Qualified Plan Limits | 2019 | 2018 |
| Maximum compensation used to determine contributions | $280,000 | $275,000 |
| Deferral limits for plans:§401(k) and §403(b)SIMPLE§457 | $19,000$13,000$19,000 | $18,500$12,500$18,500 |
| Additional catch-up contributions for employees, age 50 and older:§401(k) and §403(b)SIMPLE§457 | $6,000$3,000$6,000 | $6,000$3,000$6,000 |
| Highly Compensated Employee threshold | $125,000 | $120,000 |
| Compensation defining Key Employee in top-heavy plan | $180,000 | $175,000 |
| Compensation triggering Simplified Employee Pension (SEP) contribution requirement | $600 | $600 |
| Maximum annual addition for Defined Contribution Plan | $56,000 | $55,000 |
| Maximum annual benefit for Defined Benefit Plan | $225,000 | $220,000 |
Disclaimer:
This document provides a general summary of the provisions of the Tax Cuts and Jobs Act (renamed “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018”). Specific provisions may be more detailed and complex — with various limitations, thresholds, phase-ins, phase-outs and other exceptions. Contact your tax advisor to discuss how provisions of the Act apply to your personal tax situation.
Notes
1 – Unless otherwise noted, all federal individual income, estate and gift tax changes under the Act are temporary. The current rules and rates are suspended and the Act’s rules apply beginning January 1, 2018. The federal tax rules for individuals revert back to the pre-Act tax rates and rules after 2025. The Act’s corporate tax changes, however, are a mix of permanent changes and temporary suspensions.
2 – The maximum income levels for various brackets have increased, further reducing applicable tax rates.
3 – New three-year holding period required for carried interest preference. Also, the maximum income levels for various brackets has increased, further reducing applicable tax rates.
4 – It’s a complex calculation, subject to various limitations, phase-ins, thresholds and exclusions. The deduction is not applicable to most professional service businesses, except for those individuals with taxable income under $157,500 ($315,000 for married couples).
5 – Applies to 2017 and 2018 only.
6 – Applies to mortgage debt incurred after December 15, 2017, excluding refinancing of original debt.
7 – Alimony will no longer be deductible beginning in 2019. Similarly, the spouse/recipient will not include alimony in income. The change applies to divorce or separation agreements executed or amended after December 31, 2018. Earlier agreements with payments made in 2019 are not affected.
8 – Applies to property acquired and placed in service after September 27, 2017.
9 – Excluded from employee income, but no longer deductible by the employer.