Rev. Proc. 2018-57 provides the tax rate schedules and other tax amounts as adjusted for inflation, and reflects changes enacted by the new tax law in the United States (Pub. L. No. 115-97, enacted December 22, 2017).
With the inflation adjustment, Rev. Proc. 2018-57 provides that for tax year 2019:
- The top income tax rate is 37% for individual single taxpayers with incomes greater than $510,300 and for married couples filing jointly is $612,350.
- The alternative minimum tax (AMT) exemption amount is increased* for tax year 2019 is $71,700 and begins to phase out at $510,300 (for married couples filing jointly, the AMT exemption amount is $111,700, and the exemption begins to phase out at $1,020,600).
- The basic exclusion amount for estates of decedents who die during 2019 is $11,400,000 (up from $11,180,000 for estates of decedents who died in 2018).
- The annual exclusion for gifts is $15,000 for calendar year 2019—the same as for 2018.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.