Updates to Tax Brackets for Federal Tax Return:
| Ordinary Income Tax Bracket | Taxable Income* -Single | Taxable Income* – MFJ, Widower | Head of Household |
| 0% | <=9,700 | <=19,400 | <=13,850 |
| 12% | >9,700 and <=39,475 | >19,400 and <=78,950 | >13,850 and <=52,850 |
| 22% | >39,475 and <=84,200 | >78,950 and <=168,400 | >52,850 and <=84,200 |
| 24% | >84,200 and <=160,725 | >168,400 and <=321,450 | >84,200 and <=160,700 |
| 32% | > 160,725 and <=204,100 | > 321,450 and <=408,200 | >160,700 and <=204,100 |
| 35% | >204,100 and <=510,300 | >408,200 and <=612,350 | >204,100 and <=510,300 |
| 37% | >510,300 | > 612,350 | >510,300 |
Other Important Changes:
- Standard Deduction for single $12,200 and HOH $18,350, and $24,400 for MFJ.
- Additional Standard deduction for the age and blind is $1,250. you get $2,500 if both spouses are >=65.
- Alternative Minimum Tax (AMT) exemption amount for singles $71,700, MFJ increased to $111,700. In 2019, the 28 percent AMT rate applies to excess AMTI of $194,800 for all taxpayers ($97,400 for married couples filing separate returns). AMT exemptions phase out at 25 cents per dollar earned once taxpayer AMTI hits a certain threshold. In 2019, the exemption will start phasing out at $510,300 in AMTI for single filers and $1,020,600 for married taxpayers filing jointly
- Qualified Business Income Deduction (Sec. 199A) The Tax Cuts and Jobs Act includes a 20% deduction for pass-through businesses (K-1 receivers) against up to $160,700 of qualified business income for singles, and $321,400 for MFJ.
*For people who are not familiar with taxes, Taxable Income here isn’t your annual salary and other sourced income. It is after your deduction and exemption that arrived at your taxable income.
Capital Gains Brackets
| CG | Taxable Income* -Single | Taxable Income* – MFJ, Widower | Head of Household |
| 0% | <=39,375 | <=78,750 | <=52,750 |
| 15% | >39,375 and <=434,550 | >78,750 and <=488,850 | >52,750 and <=461,700 |
| 20% | >434,550 | >488,850 | >461,700 |
Earned Income Tax Credit
The maximum Earned Income Tax Credit in 2019 for single and joint filers is $529, if the filer has no children (see table below). The maximum credit is $3,526 for one child, $5,828 for two children, and $6,557 for three or more children. All these are relatively small increases from 2018.
| Filing Status | No Children | One Child | Two Children | Three or More Children | |
|---|---|---|---|---|---|
| Single or Head of Household | Income at Max Credit | $6,920 | $10,370 | $14,570 | $14,570 |
| Maximum Credit | $529 | $3,526 | $5,828 | $6,557 | |
| Phaseout Begins | $8,650 | $19,030 | $19,030 | $19,030 | |
| Phaseout Ends (Credit Equals Zero) | $15,570 | $41,094 | $46,703 | $50,162 | |
| Married Filing Jointly | Income at Max Credit | $6,920 | $10,370 | $14,570 | $14,570 |
| Maximum Credit | $529 | $3,526 | $5,828 | $6,557 | |
| Phaseout Begins | $14,450 | $24,820 | $24,820 | $24,820 | |
| Phaseout Ends (Credit Equals Zero) | $21,370 | $46,884 | $52,493 | $55,952 |