IRS updates tax tables and inflation adjustments

Posted 3/8/2018

The IRS has issued newly updated tax tables and inflation adjustments for the new tax law. Rev. Proc. 2018-18 changes the beginning and ending dollar amounts for the brackets, and replaces the existing tax rates with seven new rates of 10%, 12%, 22%, 24%, 32%, 35% and 37%. The revenue procedure also adjusts some of the other previously announced income limits. For the Earned Income Tax Credit, it’s $10,180 for taxpayers with one child, and $14,290 for two or more children, and $6,780 for none. Separately, the IRS has reduced the family contribution limit for health savings accounts by $50, from $6,900 to $6,850. However, the individual contribution limit remains at $3,450.

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