2018 Free Money! Tax Tables

Greetings Free Money! fans.  On December 22nd, 2017 President Trump finalized new federal income tax law when he signed the Tax Cuts and Jobs Act of 2017.  This means that there will be a number of changes to your federal income taxes in 2018; here are a few changes of note:

  1.   increased standard deductions ($12k for single filers, $24k for MFJ filers, and $18k for HH filers),
  2.   the elimination of personal exemptions,
  3.   expanded child tax credits (up from $1k to $2k per child),
  4.   two “low-rate” income tax brackets (10% and 12%)

The purpose of this page is to provide the reader with three important tax-planning numbers:

  1.   Free Money — the standard deduction and credits
  2.   Free Money + 10% — standard deduction, credits, and all income to the end of the 10% tax bracket (See links in tables below to access PDF files.)
  3.   Free Money + 10% + 12% — standard deduction, credits, and all income to the end of the 10% and 12% tax brackets.  (See links in tables below to access PDF files.)

Also, keep in mind that any income beyond the 12% tax bracket will be taxed at the 22% rate.  Finally, the only credit assumed in this chart is the child-tax credit.  (Be sure to check with your tax pro to see if you qualify for other tax-reducing credits.  If so, use them!)  Here is an excellent 2018 federal income tax calculator for those who would to check their own calculations.

Disclaimer:  This is page/post/blog is not intended as tax or investment advice; it is for mind-altering entertainment purposes only.  You are the captain of your own financial ship, I’m just a guy who blogs in his underwear in Merida, Mexico.    

Taxpayers with No Children

Here are your 2018 Free Money! amounts for those filing:  Single, Married Filing Separate (MFS), and Married Filing Jointly (MFJ).  Notice that these filing statues can take additional income at both the 10% and 12% tax brackets:

2018 Free Money for:
Single
MFS
MFJ
Effective tax rate of 8.78% at the end of the 12% tax bracket.
Standard Deduction
$12,000
$12,000
$24,000
Exemptions
$0
$0
$0
Credits
$0
$0
$0
Total Free Money
$12,000
$12,000
$24,000
Remaining 10% Bracket
$9,525
$9,525
$19,050
Free Money + 10%
$21,525
$21,525
$43,050
Tax Owed
$953
$953
$1,905
Effective Tax Rate
4.43%
4.43%
4.43%
Effective tax rate of 4.43% with the entire 12% income tax bracket remaining!
12% Bracket
$29,175
$29,175
$58,350
Free Money + 10% + 12% Brackets
$50,700
$50,700
$101,400
Tax Owed
$4,454
$4,454
$8,907
Effective Tax Rate
8.78%
8.78%
8.78%

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Married Filing Jointly with Children

If your filing status is Married Filing Jointly (MFJ) with children, look here:

MFJ + Children:
+ 1
+ 2
+ 3
+ 4
+ 5
Effective tax rates of 7% to 0% for six-figure income!
Standard Deduction
$24,000
$24,000
$24,000
$24,000
$24,000
Exemptions
$0
$0
$0
$0
$0
Credits
$19,842
$36,508
$53,175
$69,842
$82,368
Total Free Money
$43,842
$60,508
$77,175
$93,842
$106,368
Remaining 10% Bracket
New child tax credit of $2k per child
covers the entire 10% bracket!
Free Money + 10%
$43,842
$60,508
$77,175
$93,842
$106,368
Tax Owed
$0
$0
$0
$0
$0
Effective Tax Rate
0%
0%
0%
0%
0%
Effective tax rate of 0% with some room available in the 12% tax bracket.
12% Bracket
$57,558
$40,892
$24,225
$7,558
$0
Free Money + 10%
+ 12% Brackets
$101,400
$101,400
$101,400
$101,400
$106,368
Tax Owed
$6,907
$4,907
$2,907
$907
$0
Effective Tax Rate
6.81%
4.48%
2.87%
0.89%
0%


Head of Household with Children

If you file as the Head of Household (HH) with children, see below:

HH + Children:
+ 1
+ 2
+ 3
+ 4
+ 5
Effective tax rate of 0% to 6% for $70k (or more) of income!
Standard Deduction
$18,000
$18,000
$18,000
$18,000
$18,000
Exemptions
$0
$0
$0
$0
$0
Credits
$18,933
$35,600
$52,054
$61,144
$70,236
Total Free Money
$36,933
$53,600
$70,054
$79,144
$88,236
Remaining 10% Bracket
New child tax credit of $2k per child
covers the entire 10% bracket!
Free Money + 10%
$36,933
$53,600
$70,054
$79,144
$88,236
Tax Owed
$0
$0
$0
$0
$0
Effective Tax Rate
0%
0%
0%
0%
0%
Effective tax rate of 0% with some room available in the 12% tax bracket.
12% Bracket
$32,867
$16,200
$0
$0
$0
Free Money + 10%
+ 12% Brackets
$69,800
$69,800
$70,054
$79,144
$88,236
Tax Owed
$3,944
$1,944
$0
$0
$0
Effective Tax Rate
5.65%
2.79%
0%
0%
0%

Married Filing Separately with Children

Finally, if you file Married Filing Separate (MFS) with children, this section is for you:

MFS + Children:
+ 1
+ 2
+ 3
+ 4
+ 5
Effective tax rate of 0% to 5% for $51k (or more) of income!
Standard Deduction
$12,000
$12,000
$12,000
$12,000
$12,000
Exemptions
$0
$0
$0
$0
$0
Credits
$18,250
$34,197
$45,730
$54,822
$63,190
Total Free Money
$30,250
$46,917
$57,730
$66,822
$75,190
Remaining 10% Bracket
New Child Tax Credit of $2k per child
covers the entire 10% bracket!
Free Money + 10%
$30,250
$46,917
$57,730
$66,822
$75,190
Tax Owed
$0
$0
$0
$0
$0
Effective Tax Rate
0%
0%
0%
0%
0%
Effective tax rate of 0% with some room available in the 12% tax bracket.
12% Bracket
$24,050
$3,783
$0
$0
$0
Free Money + 10%
+ 12% Brackets
$50,700
$50,700
$57,730
$66,822
$75,190
Tax Owed
$2,454
$454
$0
$0
$0
Effective Tax Rate
4.84%
0.90%
0%
0%
0%

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