IRS updates inflation adjustments for new tax law

Posted 4/16/2018

With tax deadline day for 2017 returns falling tomorrow, the IRS has updated the annual inflation adjustments for the 2018 tax year, to reflect changes from the recent tax reform law. For 2018, the foreign earned income exclusion will be $103,900. The maximum earned income credit amount will be $6,431 for taxpayers who have three or more qualifying children, for 2018. Further, participants who have self-only coverage in a Medical Savings Account, the plan needs to have an annual deductible of no less than $2,300, but not more than $3,450. For self-only coverage, the maximum out-of-pocket expense amount is $4,550. For tax year 2018, participants with family coverage, the floor for the annual deductible is $4,550, and the deductible cannot be more than $6,850.

Accounting Today