The world of taxes can be a confusing one, especially when it comes to understanding the various tax rates and tables that apply in 2018. Knowing how much you owe and when it’s due can be difficult to navigate, so understanding the nuances of the tax rate tables is an important part of filing your taxes this year. With this in mind, we’ve created an overview of the tax rate tables for 2018 that will make it easier for you to understand what you owe and when.
When it comes to understanding the tax rate tables, there are a few key points to keep in mind. First, the tax rate tables are based on your filing status: whether you’re single or married, head of household, or a qualifying widow(er) with dependent children. The tax rate tables also consider your taxable income, which is your gross income minus allowable deductions. Depending on your filing status and taxable income, the applicable tax rate for 2018 can range from 10% to 37%.
To make the tax rates easier to understand, the IRS has organized them into seven different tax brackets, each with its own rate. The tax brackets for 2018 are listed below, along with the corresponding tax rate for each bracket:
• 10% (single filers with taxable income up to $9,525; married filing jointly with taxable income up to $19,050; head of household with taxable income up to $13,600; qualifying widow(er) with dependent child with taxable income up to $18,700).
• 12% (single filers with taxable income between $9,526 and $38,700; married filing jointly with taxable income between $19,051 and $77,400; head of household with taxable income between $13,601 and $51,800; qualifying widow(er) with dependent child with taxable income between $18,701 and $77,400).
• 22% (single filers with taxable income between $38,701 and $82,500; married filing jointly with taxable income between $77,401 and $165,000; head of household with taxable income between $51,801 and $82,500; qualifying widow(er) with dependent child with taxable income between $77,401 and $165,000).
• 24% (single filers with taxable income between $82,501 and $157,500; married filing jointly with taxable income between $165,001 and $315,000; head of household with taxable income between $82,501 and $157,500; qualifying widow(er) with dependent child with taxable income between $165,001 and $315,000).
• 32% (single filers with taxable income between $157,501 and $200,000; married filing jointly with taxable income between $315,001 and $400,000; head of household with taxable income between $157,501 and $200,000; qualifying widow(er) with dependent child with taxable income between $315,001 and $400,000).
• 35% (single filers with taxable income between $200,001 and $500,000; married filing jointly with taxable income between $400,001 and $600,000; head of household with taxable income between $200,001 and $500,000; qualifying widow(er) with dependent child with taxable income between $400,001 and $600,000).
• 37% (single filers with taxable income over $500,000; married filing jointly with taxable income over $600,000; head of household with taxable income over $500,000; qualifying widow(er) with dependent child with taxable income over $600,000).
It’s important to keep in mind that these tax rates are only applicable to those whose taxable income falls within the specified ranges. If your taxable income exceeds the upper limit of any of these brackets, you’ll be subject to the next highest tax rate. Additionally, the tax rate tables for 2018 do not include any additional taxes, such as Social Security and Medicare taxes, which are generally assessed at a flat rate.
In addition to the tax rate tables, there are a few other factors to keep in mind when filing your taxes this year. For example, certain deductions and credits may reduce your taxable income and, in turn, your overall tax burden. Additionally, some states have their own tax laws that must be taken into account. It’s important to familiarize yourself with the different laws and regulations in your state so that you can maximize your deductions and minimize your tax burden.
Overall, understanding the tax rate tables for 2018 can be daunting, but it’s an important part of filing your taxes this year. By familiarizing yourself with the different tax brackets and considering all of the available deductions and credits, you’ll be able to ensure that you’re paying the correct amount of taxes and minimizing your overall tax burden.
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