What is My Tax Bracket?

The IRS code is always changing, but as of right now the tax brackets 2018 are split up into six main divisions which begin at 10% and go all the way up to as much as 35 percent. Now, it is essential to know, or speculate, what tax bracket you will be in for 2018 in order to approximate your comprehensive tax withholding or tax estimates throughout the year. Prior to being able to figuring out your tax bracket for 2018, the first thing you will need to know is what your filing status is. This is a very important step. What you choose to be your 2018 filing status will not only sway your tax bracket, but it will also change your standard deduction and eligibility for tax credits. Here is a quick explanation of the different filing statuses for 2018 and how they affect your tax bracket 2018. For each bracket, we will compute a rough estimate of the tax burden for 2018, assuming you have made $100,000.

The 1st filing status for 2018 is “single.” You are able to file your 2018 tax return as a single man or women if you’re not wedded, were married but legally separated at the end of 2018, or widowed in the year of 2018 and not remarried. Generally speaking, for you to file as a single individual, you’ll want to be single or otherwise not wedded on the last day of the year. Should you choose to file single for the year of 2018, your standard deduction is going to be $5,800. Those who choose to file single ordinarily share the two smallest standard deductions and tax brackets with “married filing separately” men and women. What follows are the tax brackets 2018 for single people:

Taxable Income Tax Rate
$0-$8,500 10% $8,500-$34,500 15% $34,500-$83,600 25% $83,600-$174,400 28% $174,400-$379,150 33% $379,150+ 35%

The other filing status for 2018 is “married filing jointly.” Married filing jointly is a special filing status for married couples. Husbands and wives have the opportunity to benefit from a larger standard deduction as well as more preferential treatment regarding tax brackets and tax credits. The most self-evident reason for the preferential treatment is that the federal government wishes to stimulate marriage and procreation. For those who elect to be a married filing jointly couple, you have access to a standard deduction of $11,600 for 2018. If you notice, this number is exactly double the amount of the single deduction. Also some of the tax rates end up being more favorable. The following tables are the tax brackets 2018 for married filing jointly taxpayers:

Taxable Income Tax Rate $0-$17,000 10% $17,000-$69,000 15% $69,000-$139,350 25% $139,350-$212,300 28% $212,300-$379,150 33% $379,150+ 35%

A different filing status is “married filing separately.” It’s possible you have deduced from the title that this filing status is made for individuals who are presently married, however, they are separated or prefer to keep on being monetarily separated. Some couples are in the steps involved in divorcing at the conclusion of the year. In accordance with the law, these are nevertheless married despite the fact that they are presently in the process of divorce. Generally speaking, if you are married on December 31, 2018, the federal government deals with you as married regardless of whether you’re divorcing or not. There are a lot of couples going through the process of a divorce who prefer to keep their finances separate, for them to file married filing separately. By filing separately, each person will receive a standard deduction of $5,800-the exact same as a single taxpayer. While the standard deduction is the exact same as that of a single taxpayer, the tax bracket is not. People married filing separately have much more unfavorable tax brackets. Let us discuss the tax brackets 2018 for married filing separately taxpayers:

Taxable Income Tax Rate $0-$8,500 10% $8,500-$34,500 15% $34,500-$69,675 25% $69,675-$106,150 28% $106,150-$189,575 33% $189,575+ 35%

The fourth filing status is “head of household.” To file your 2018 tax return as head of household, you need to be single on December 31, 2018. You may have never been wedded, or you might have been divorced or widowed. You have got to also provide a home and a minimum of 50 % of the cost of living for one or more dependents. Quite often these dependents are young boys and girls, impaired individuals, and the elderly. Head of household people today get a larger standard deduction of $8,700 for 2018. Head of household individuals are also a part of a distinct set of tax brackets. Take a look at the tax brackets 2018 for head of household taxpayers:

Taxable Income Tax Rate $0-$12,150 10% $12,150-$46,250 15% $46,250-$119,400 25% $119,400-$193,350 28% $193,350-$379,150 33% $379,150+ 35%

If you are interested in learning more about the 2011 tax brackets or other tax deductions and tax credits check out some of these helpful articles about Tax Brackets 2018.

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