Taxpayers that don’t maintain health insurance coverage must claim a waiver or exemption or be subject to the shared individual responsibility payment. For 2018, that penalty is equal to 2.5% of your adjusted gross income (AGI), or $695 per adult and $347.50 per child, up to a maximum of $2,085, whichever is higher. For 2018, HDHP means, for participants with family coverage, an annual deductible that is not less than $4,600 but not more than $6,850 for family coverage, the maximum out of pocket expense is $8,400. For 2018, a high deductible health plan (HDHP) is one that, for participants who have self-only coverage in an MSA, has an annual deductible that is not less than $2,300 but not more than $3,450 for self-only coverage, the maximum out of pocket expense amount is $4,500. For 2018, the monthly limitation for the qualified transportation fringe benefit is $260 (up just $5) for transportation in a commuter highway vehicle or any transit pass, as well as qualified parking. For tax year 2018, the foreign earned income exclusion is $104,100, up from $102,100 for tax year 2017. Phaseouts apply for taxpayers with modified adjusted gross income (MAGI) in excess of $65,000 ($135,000 for joint returns) and is completely phased out for taxpayers with modified adjusted gross income (MAGI) of $80,000 or more ($165,000 or more for joint returns). For 2018, the maximum amount that you can take as a deduction for interest paid on student loans remains at $2,500. You'll find some of the most common here: For 2018, the adjusted gross income amount used to determine the reduction in the Lifetime Learning Credit is $57,000 (or $114,000 for joint filers).Ĭhanges were also made to certain tax deductions, deferrals & exclusions for 2018. ![]() Lifetime Learning Credit. Income restrictions apply to the Lifetime Learning Credit.Phaseouts apply beginning with modified adjusted gross income (MAGI) in excess of $207,580 and completely phased out for taxpayers with MAGI of $247,580 or more. For 2018, the credit allowed for an adoption of a child with special needs is $13,840, and the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $13,840. Keep in mind that this is the value of the expenses used to determine the credit and not the actual amount of the credit. For 2018, the value used to determine the amount of credit that may be refundable is $3,000 (the credit amount has not changed). The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds, and phase-outs. For 2018, the maximum EITC amount available is $6,444 for taxpayers filing jointly who have 3 or more qualifying children. Some tax credits are also adjusted for 2018. For 2018, the AMT exemption amount for the kiddie tax may not exceed the sum of the child's earned income plus $7,650. ![]() There's an AMT for the kiddie tax, too. ![]() That means all unearned income in excess of $2,100 is taxed at the child's parent’s tax rate. For 2018, the kiddie tax threshold - meaning the amount of unearned net income that a child can take home without paying any federal income tax - remains at $1,050. Unearned income is income from sources other than wages and salary, like dividends and interest. The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24.
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