Tax Numbers Worth Knowing

The headline of this infographic is Tax Numbers Worth Knowing. Introductory text says Here are some of the key tax reform details to know as you prepare your 2018 income taxes. 37%: Tax rate for highest income bracket.  $24,000/$12,000: New standard deductions for married/joint and single filers. 6: States that offer tax deductions for contributions to any state's 529 plan (Arizona, Kansas, Minnesota, Missouri, Montana, and Pennsylvania). Source: Savingforcollege.com. $250,000 or $200,000: Medicare AGI or Net Investment Income threshold for married/joint or single filers after which Medicare surtax of 0.9% kicks in 40%: Estate tax rate on transfers in excess of the $11.18 million exemption for individuals. The exemption amount increases to $22.36 million for married couples. $15,000: Total amount you can gift per year per person without paying a gift tax or reducing your $11.18 million estate tax exclusion Source: IRS. A section labeled 2018 Income Tax Rate Schedules* outlines the tax rate for varying income levels. For a married taxpayer filing jointly/surviving spouse, taxable income* over $0 but not over $19,050 pays $0.00 plus 10% on excess of the amount over $0. Taxable income over $19,050 but not over $77,400 pays $1,905.00 plus 12% on excess of the amount over $19,050. Taxable income over $77,400 but not over $165,000 pays $8,907.00 plus 22% on excess of the amount over $77,400. Taxable income over $165,000 but not over $315,000 pays $28,179.00 plus 24% on excess of the amount over $165,000. Taxable income over $315,000 but not over $400,000 pays $64,179.00 plus 32% on excess of the amount over $315,000. Taxable income over $400,000 but not over $600,000 pays $91,379.00 plus 35% on excess of the amount over $411,550. Taxable income over $600,000 pays $161,379.00 plus 37% tax of the amount over $611,550. For a single taxpayer, taxable income over $0 but not over $9,525 pays $0.00 plus 10% on excess of the amount over $0. Taxable income over $9,525 but not over $38,700 pays $952.50 plus 12% on excess of the amount over $9,525. Taxable income over $38,700 but not over $82,500 pays $4,453.50 plus 22% on excess of the amount over $38,700. Taxable income over $82,500 but not over $157,500 pays $14,089.50 plus 24% of the amount over $86,200. Taxable income over $157,500 but not over $200,000 pays $32,089.50 plus 32% on excess of the amount over $157,500. Taxable income over $200,000 but not over $500,000 pays $45,689.50 plus 35% excess of the amount over $200,000. Taxable income over $500,000 pays $150,689.25 plus 37% on excess of the amount over $500,000. *Taxable income is income after all deductions (including either itemized or standard deduction) and exemptions. A section labeled Taxes on Long-Term Capital Gains has an introduction that says short-term gains are still taxed as ordinary income. Qualified dividends are taxed at the long-term capital gains rates; nonqualified dividends are taxed at ordinary income tax rates. A chart shows a tax rate of 0%* for long-term capital gains of up to $38,600 for single taxpayers and up to $77,200 for taxpayers who are married, filing jointly. A tax rate of 15%* applies to long-term capital gains between $38,601 and $425,800 for single taxpayers, and between $77,201 and $479,000 for taxpayers who are married, filing jointly. A tax rate of 20%* applies to long-term capital gains over $425,800 for single taxpayers and over $479,000 for taxpayers who are married, filing jointly.   *To the extent taxable income remains in these brackets. Consult your tax advisor about how this applies to your situation. Higher rates apply to collectibles and unrecaptured §1250 gain.

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Wells Fargo & Company and its affiliates do not provide legal advice. Wells Fargo Advisors does not provide tax or legal advice. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared.

This information is provided for educational and illustrative purposes only.

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