The IRS has released the 2018 annual inflation adjustments for more than 50 tax provisions. A few of the adjustments are below:
- The standard deduction for married filing jointly rises to $13,000 (single – $6,500)
- The personal exemption rises to $4,140, an increase of $100
- Contribution limits for 401(k), 403(b) & most 457 plans increases to $18,500, an increase of $500
- HSA (health savings accounts) contribution limits increase to $6,900 for family & $3,450 for single plans
- The limit on annual contributions to an IRA stays unchanged at $5,500
Senate passed a budget resolution late on October 19th, a key first step in Trump’s Tax Overhaul. As the end of the tax year is fast approaching, it so important to stay informed on all tax changes & plan accordingly as the year comes to a close. My hope is that these tax changes will be in place by Thanksgiving, to give the tax community, software companies and tax professionals the necessary time we all need to implement these changes & advise our clients prior to the start of tax season. As developments happen, we will keep you informed by posting key changes to our site.