The bill also includes a temporary $500 nonrefundable credit for other qualifying dependents. The child tax credit has been expanded to $2,000 per qualifying child and is refundable up to $1,400, subject to phaseouts. Here's a look at a few of the most popular: Some additional tax credits and deductions were adjusted for 2018 or altered under the conference bill. For 2018, the Pease limitations do not apply. Don Pease (D-OH), previously capped or phased out certain deductions. With respect to earned income, the rules are the same as before.įor high-income taxpayers who itemize their deductions, the Pease limitations, named after former Rep. Taxable income attributable to net unearned income will be taxed according to the brackets applicable to trusts and estates (see above, earlier). Unearned income is income from sources other than wages and salary, like dividends and interest. The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24. The AMT exemption amounts will be as follows:

The alternative minimum tax (AMT) exemption amounts are permanently adjusted for inflation.

For married taxpayers, you will be required to file a tax return if your gross income, when combined with your spouse’s gross income, is more than the standard deduction for a joint return, provided that you and your spouse lived in the same home your spouse does not file a separate tax return and neither you nor your spouse is a dependent of another taxpayer who has income other than earned income in excess of $500 (indexed for inflation).

For individual taxpayers, you will be required to file a tax return if your gross income for the taxable year is more than the standard deduction.

Since there will be no personal exemption amounts, here's your cheat sheet for figuring whether you need to file a return in 2019 for the 2018 tax year (compare to the 2017 tax year rules here). There will be no personal exemption amounts for 2018.

For 2018, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,050 or the sum of $350 and the individual’s earned income.The additional standard deduction amount increases to $1,600 for unmarried taxpayers. For 2018, the additional standard deduction amount for the aged or the blind is $1,300.

Irs 1040 tax table 2018