The nation’s tax rate schedules and a number of tax-related provisions have gotten their annual inflation adjustments for the 2018 tax year. The Internal Revenue Service (IRS) released the schedule and tax tables yesterday, along with changes to pension plan limitations and 401(k) contribution limits.
Note that these numbers are for the 2018 taxes that you will use to prepare tax returns in 2019.
While tax reforms being discussed in Congress could change things, as it stands right now, there are no significant changes in the rates.
But as Kelly Philips Erb at Forbes magazine explains, they are useful for taxpayers who might be expecting big changes in their lives or businesses.
“If you aren’t expecting any significant changes in 2018, you can use the updated tax tables and other tax numbers to estimate your liability,” Erb writes. “If you expect to make more money or have a chance in your circumstances (i.e., get married, buy a house, start a business, have a baby), consider adjusting your withholding or tweaking your estimated tax payments.”