The following table provides some important federal tax information for 2018, as compared with 2017. Many of the dollar amounts are unchanged and some changed only slightly due to inflation.

Social Security/ Medicare 20182017
Social Security Tax Wage Base $128,400 $127,200
Medicare Tax Wage Base No limit No limit
Employee portion of Social Security 6.2% 6.2%
Employee portion of Medicare
1.45%1.45%
Individual Retirement Accounts 20182017
Roth IRA Individual, up to 100% of earned income  $5,500$5,500
Traditional IRA Individual, up to 100% of earned Income  $5,500$5,500
Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older  $1,000$1,000
Qualified Plan Limits 20182017
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)  $ 55,000 $ 54,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))  $220,000 $215,000
Maximum compensation used to determine contributions  $275,000 $270,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) $  18,500 $ 18,000
401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older  $   6,000 $  6,000
SIMPLE deferrals (Section 408(p)(2)(A))  $ 12,500 $ 12,500
SIMPLE additional "catch-up" contributions for employees age 50 and older  $   3,000 $   3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B))  $120,000 $120,000
Compensation defining key employee (officer)  $175,000 $175,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))  $      600 $      600
Driving Deductions 20182017
Business mileage, per mile 54.5 cents
53.5 cents
Charitable mileage, per mile 14 cents 14 cents
Medical and moving, per mile 18 cents 17 cents
Business Equipment 20182017
Maximum Section 179 deduction $1,000,000 $510,000
Phase out for Section 179 $2.5 million $2.03 million
Transportation Fringe Benefit Exclusion 20182017
Monthly commuter highway vehicle and transit pass  $260 $255
Monthly qualified parking  $260$255
Standard Deduction 20182017
Married filing jointly $24,000 $12,700
Single (and married filing separately) $12,000 $6,350
Heads of Household $18,000 $9,350
Personal Exemption 20182017
Amount N/A* $4,050
Personal Exemption Phaseout 20182017
Married filing jointly and surviving spouses N/A*Begins at $313,800
Heads of Household N/A*Begins at $287,650
Unmarried individuals N/A*Begins at $261,500
Married filing separately N/A*Begins at $156,900
Domestic Employees 20182017
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $2,100 $ 2,000
Kiddie Tax 20182017
Net unearned income not subject to the "Kiddie Tax" **$2,100
$ 2,100
Estate Tax 20182017
Federal estate tax exemption $11.18
million***
$5.49
million
Maximum estate tax rate 40% 40%
Annual Gift Exclusion 20182017
Amount you can give each recipient $15,000 $14,000

* The Tax Cuts and Jobs Act (TCJA) eliminates the personal exemption beginning in 2018.

** The TCJA changes the way the Kiddie Tax is imposed.

***The TCJA raises the estate tax exemption to $10 million for 2018. Adjusted for inflation this exemption is set at $11.18 million.

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