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2019 Projected Tax Figures

September 26, 2018 | By | No Comments

Wolters Kluwer recently released projected inflation-adjusted 2019 amounts for a few important items. These projections are based on the Consumer Price Index figures released on September 12, 2018.

Individual Tax Brackets

With the Tax Cuts and Jobs Act, we saw 7 total tax brackets put into place, ranging from 10% to 37%. According to Wolters Kluwer, the projected brackets are as follows:

For married taxpayers filing jointly:

  • The 10 percent bracket applies to taxable incomes up to $19,400
  • The 12 percent bracket applies to taxable incomes over $19,400 and up to $78,950
  • The 22 percent bracket applies to taxable incomes over $78,950 and up to $168,400
  • The 24 percent bracket applies to taxable incomes over $168,400 and up to $321,450
  • The 32 percent bracket applies to taxable incomes over $321,450 and up to $408,200
  • The 35 percent bracket applies to taxable incomes over $408,200 and up to $612,350
  • The 37 percent bracket applies to taxable incomes over $612,350

For unmarried taxpayers:

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

Standard Deduction

According to Wolters Kluwer’s projections, the standard deduction would see only a slight increase. For unmarried taxpayers, an increase of $200 would bring it to $12,200 and married taxpayers would see a bump of $400 to $24,400.

Alternative Minimum Tax Exemptions

The Tax Cuts and Jobs Act eliminated the Alternative Minimum Tax exemptions for corporations, but individuals will continue to fall into its qualifications. For married taxpayers, the exemption would see a slight increase from $109,400 to $111,700. For unmarried taxpayers, the exemption would get a slight boost from $70,300 to $71,700.

Retirement Contributions

Roth IRA income phase-out range is projected to be between $193,000 and $203,000 for married taxpayers and between $122,000 and $137,000 for unmarried taxpayers. For traditional IRA’s, the contribution limit for 2019 is projected to sit at $6,000 ($7,000 for those over 50 years of age), up from $5,500 ($6,500) in 2018.

Student Loan Interest Deduction

The $2,500 student loan interest deduction is projecting to phase out for married joint filers with modified adjusted gross income (MAGI) greater than $140,000 and $70,000 for unmarried taxpayers.

As one of Oregon’s largest CPA firms, Delap LLP is here to serve your accounting, wealth advisory and cybersecurity needs. For more information about the many changes associated with tax reform, contact a Delap advisor or call 503-697-4118 today.

Check out our previous 2018 presentation on Tax Reform, download the slides today:

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