While the AMT has not gone away, fewer people will likely have to pay it compared to previous years. That’s because Congress raised the exemption amount for taxpayers subject to the AMT (e.g., single or head of household taxpayers are exempt if they earn less than $70,300 in taxable income for 2018). Also, Congress indexed the exemption amount to inflation.
ADJUSTMENTS IN TAX RATES
While the number of tax brackets remains the same as previous years, the tax rates for 2018 are lower than for 2017. Rates for this year are 10%, 12%, 22%, 24%, 32%, 35% and 37%.
The end of the year is only three months away. If you have not done so already, you should schedule an appointment with your CPA to review your tax status and to determine if there is anything you can do to legally lower your 2018 tax bill between now and Dec. 31.
If you would like to learn more about how the Tax Cuts and Jobs Act will affect your business, you should attend the CalCPA Education Foundation Federal, State, Local and International Taxation Conference, Nov. 15-16, in Burbank. The conference will discuss federal and state tax developments and regulations affecting individuals, corporations, estates and trusts. For information and registration, go to www.CalCPA.org.
Miklos Ringbauer, CPA, is first vice president of the Los Angeles Chapter of the California Society of CPAs and a founder of MiklosCPA, Los Angeles.
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