WK projects annual inflation amounts for 2019

Annual inflation-adjusted amounts for tax year 2019 are projected y Wolters Kluwer. The projected amounts include 2019 tax brackets, the standard deduction, alternative minimum tax amounts, among others. The projected amounts are based upon Consumer Price Index figures released by the U.S. Department of Labor on September 12, 2018.

The Tax Cuts and Jobs Act of 2017 (TCJA) (P.L. 115-97) mandated a change from the Consumer Price Index for All Urban Consumers (CPI-U) to the Chained Consumer Price Index for All Urban Consumers (C-CPI-U). Official amounts for 2019 should be released by the IRS later in 2018.

Individual tax brackets

The projected bracket ranges for individuals in 2019 are as follows.
For married taxpayers filing jointly:

  • The 10% bracket applies to taxable incomes up to $19,400
  • The 12% bracket applies to taxable incomes over $19,400 and up to $78,900
  • The 22% bracket applies to taxable incomes over $78,900 and up to $168,400
  • The 24% bracket applies to taxable incomes over $168,400 and up to $321,450
  • The 32% bracket applies to taxable incomes over $321,450 and up to $408,200
  • The 35% bracket applies to taxable incomes over $408,200 and up to $612,350
  • The 37% bracket applies to taxable incomes over $612,350

For heads of households:

  • The 10% bracket applies to taxable incomes up to $13,850
  • The 12% bracket applies to taxable incomes over $13,850 and up to $52,850
  • The 22% bracket applies to taxable incomes over $52,850 and up to $84,200
  • The 24% bracket applies to taxable incomes over $84,200 and up to $160,700
  • The 32% bracket applies to taxable incomes over $160,700 and up to $204,100
  • The 35% bracket applies to taxable incomes over $204,100 and up to $510,300
  • The 37% bracket applies to taxable incomes over $510,300

For unmarried taxpayers:

  • The 10% bracket applies to taxable incomes up to $9,700
  • The 12% bracket applies to taxable incomes over $9,700 and up to $39,450
  • The 22% bracket applies to taxable incomes over $39,450 and up to $84,200
  • The 24% bracket applies to taxable incomes over $84,200 and up to $160,700
  • The 32% bracket applies to taxable incomes over $160,700 and up to $204,100
  • The 35% bracket applies to taxable incomes over $204,100 and up to $510,300
  • The 37% bracket applies to taxable incomes over $510,300

For married taxpayers filing separately:

  • The 10% bracket applies to taxable incomes up to $9,700
  • The 12% bracket applies to taxable incomes over $9,700 and up to $39,450
  • The 22% bracket applies to taxable incomes over $39,450 and up to $84,200
  • The 24% bracket applies to taxable incomes over $84,200 and up to $160,700
  • The 32% bracket applies to taxable incomes over $160,700 and up to $204,100
  • The 35% bracket applies to taxable incomes over $204,100 and up to $306,175
  • The 37% bracket applies to taxable incomes over $306,175

For estates and trusts:

  • The 10% bracket applies to taxable incomes up to $2,600
  • The 24% bracket applies to taxable incomes over $2,600 and up to $9,300
  • The 35% bracket applies to taxable incomes over $9,300 and up to $12,750
  • The 37% bracket applies to taxable incomes over $12,750

Standard deduction

TCJA also roughly doubled the amount of the standard deduction. For 2019, the following standard deduction amounts are projected to apply:

  • For married taxpayers filing jointly, $24,400
  • For heads of households, $18,350
  • For unmarried taxpayers as well as married taxpayers filing separately, $12,200

Other amounts

The following other amounts are also projected for 2019:

Adoption credit. The adoption credit for 2019 is projected to be $14,080 for 2019.

Roth IRA. For 2019, the allowed Roth IRA contribution amount is projected to phase out for married taxpayers filing jointly with income between $193,000 and $203,000 For heads of household and unmarried filers, the projected phaseout range is between $122,000 to $137,000.

IRA contributions. The maximum amount of deductible contributions that can be made to an IRA is projected to be $6,000 for 2019. The increased contribution amount for taxpayers age 50 and over will, therefore, be $7,000.

The above-the-line deduction for traditional IRA contributions is projected to begin to phase out for married joint filers whose income is greater than $103,000 if both spouses are covered by a retirement plan at work. If only one spouse is covered by a retirement plan at work, the phaseout is projected to begin when modified adjusted gross income reaches $193,000. For heads of household and unmarried filers who are covered by a retirement plan at work, the 2019 income phaseout range for deductible IRA contributions is projected to begin at $64,000.

Foreign earned income. The amount of the 2019 foreign earned income exclusion under Code Sec. 911 is projected to be $105,900.

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