Here’s how the new US tax brackets for 2019 affect every American taxpayer

Here’s how the new US tax brackets for 2019 affect every American taxpayer

Tax Day 2019 is April 15. That means taxes are due for income earned in 2018, the first tax year under the 2017 GOP tax law.

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The IRS recently updated the seven federal income-tax brackets for 2019 to reflect inflation. So any income earned this year will be subject to the new tax brackets.

The standard deduction will be $12,200 for single filers and $24,400 for married filers, up $200 and $400, respectively.

Here’s how the brackets have changed for the new year compared with 2018:

For single filers:

single filers tax 2018 vs 2019

For married filers:

married filers tax 2018 vs 2019

For head-of-household filers:

head of household tax 2018 vs 2019

Other tax changes for 2019 include increased limits for retirement contributions:

  • $19,000 limit for 401(k), 403(b), and most 457 plans. (If you’re 50 or older, you can put away an additional $6,000.)
  • $6,000 limit for IRAs. (If you’re 50 or older, you can put away an additional $1,000.)

And higher exemptions for gifts and estate taxes:

  • $11.4 million limit for lifetime gift and estate-tax exemption.
  • $15,000 limit for annual gift and estate-tax exemption (same as 2018).

 

Source:- thisisinsider

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