IRS issued the new official tax brackets, standard deductions, and other amounts like phaseouts and credits in March 2018. The GOP appears to have settled on a final tax bill. Below are the 2018 income tax rules that have substantial changes in the brackets, deductions, and exemptions. This data plays a key role in your tax planning for 2018 and the amended income tax return that needs to be filed.

The 2018 income tax brackets
Below are the various categories and the income tax one has to pay based on these categories. Note that the income criteria listed below are not for your gross income but your taxable income.

Unmarried individuals (other than the surviving spouses and head of the households)

• The 2018 income tax rules state that up to $9,525 taxable income will be charged 10% of income tax.
• Whereas, income over $9,525 but not over $38,700 will be taxed $952.50 and 12% of the amount that exceeds $9,525.
• If the income is over $38,700 but not over $82,500, the income tax charged will be $4,453.50 along with 22% of the excess over $38,700.
• When the income is over $82,500 but not over $157,500, $14,089.50 will be charged along with 24% of the amount over $82,500.
• While, when the income is over $157,500 but not over $200,000, the income tax charged will be $32,089 plus 35% of the amount exceeding $157,500.
• When the income is over $200,000 but not over $500,000, $45,689.50 is charged along with 35% excess of $200,000.
• According to the 2018 income tax rules, any income that is over $500,000 is taxed at $150,689.50 plus 37% of the amount that is exceeding $500,000.

Married filing jointly and surviving spouse

• According to the 2018 income tax rules, 10% is charged on taxable income of up to $19,050.
• While, taxable income that is over $19,050 but not over $77,400, $1,905 is taxed along with 12% of amount exceeding $19,050.
• Taxable income that is over $77,400 but not over $165,000 is taxed at $8,907 along with 22% of income over $77,400.
• When the taxable income is over $165,000 but not over $315,000, $28,179 is taxed along with 24% of the excess over $165,000.
• In case the taxable income is over $315,000 but it does not exceed $400,000, $64,179 is charged along with 32% of income over $315,000.
• When the taxable income is over $400,000 and not over $600,000, $91,379 is charged along with 35% of the amount exceeding $400,000.
• Also, according to the new income tax rules of 2018, income that is over $600,000 is charged $161,379 along with 37% if the income that is exceeding $600,000.

Head of households

• In case of a head of the household, the income up to $13,600 is charged 10% income tax according to the 2018 income tax rules.
• When the income is over $13,600, but is not over $51,800, the income tax charged is $1,360 along with 12% income exceeding $13,600.
• When the income is over $51,800 but not over $82,500, $5,944 is charged along with 22% of income that exceeds over $51,800.
• When the income is over $82,500 but not over $157,500, the income tax charged is $12,698 in addition to 24% of the income that exceeds over $82,500.
• When the income is over $157,500 but not over $200,000, the income tax that is charged is $30,698 along with 32% of the amount exceeding $157,500.
• When the income exceeds $200,000 but is not above $500,000, $44,298 is charged as an income tax along with 35% of the amount exceeding $200,000.
• Also, the 2018 income tax rules state that for income that is over $500,000, $149,298 is charged along with 37% of the amount that exceeds $500,000.

Married individuals filing separately

• In case of married individuals filing separately, 10% of the income is taxable if it falls under the bracket up to $9,525.
• When the income is over $9,525, but it does not exceed $38,700 $952.50 is charged along with 12% of tax on income that exceeds $9,525.
• When the income is over $38,700, but falls under $82,500, $4,453.50 is charged with 22% of the amount over $38,700.
• When the income is over $82,500 but it does not exceed $157,500, $14,089.50 is charged as an income tax along with 24% of the amount that exceeds $82,500.
• When the income is above $157,500 but it is not over $200,000, the tax that is charged is $32,089.50 plus 32% of the amount that exceeds over $157,500.
• When the income falls in the bracket over $200,000 but is not over $300,000, the tax charged is $45,689.50 along with 35% of the amount that exceeds $200,000.
• When the income is over $300,000, the taxed charged is $80,689.50 plus 37% of the amount that exceeds $300,000 as per the 2018 income tax rules.

The standard deduction of 2018
According to the 2018 income tax rules, there are major changes in the standard deduction and exemptions. While, the personal exemption for 2018 was $4,150, but the exemption is removed entirely in the new tax bill. As per the new law, $24,000 is the standard deduction in 2018 for a couple filing jointly or for a surviving spouse. $18,000 is the standard deduction for the heads of the households. While both unmarried individuals and married individuals filing separately have $12,000 as it is the standard deduction.