Client Tip for January 2018: 2018 Standard Mileage Rates Issued By The IRS
2018 STANDARD MILEAGE RATES ISSUED BY THE IRS
The Internal Revenue Service has issued its 2018 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1, 2018, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be as follows:
- For business miles driven, rate is now 54.5 cents per mile (up from 53.5 cents in 2017).
- For medical or moving purposes, rate is now 18 cents per mile driven (up from 17 cents in 2017).
- For miles driven in service of charitable organizations, 14 cents per mile driven (same rate as 2017).
TAX CUTS AND JOBS ACT INDIVIDUAL PROVISIONS
The following is a comparison of some of the individual income tax provisions under the old law and the new law. Some of the amounts below are the 2018 amounts as indexed for inflation.
|Old Law||New Law|
|Tax Brackets||10%, 15%, 25%, 28%, 33%, 35%, 39.6%||10%, 12%, 22%, 24%, 32%, 35%, 37%|
|Standard Deduction: Married Filing Joint||$13,000||$24,000|
|Standard Deduction: Single||$6,500||$12,000|
|Child Tax Credit||$1,000||$2,000|
|State and Local Tax||All State and Local taxes fully deductible as an itemized deduction||Income and property tax deduction limited to $10,000|
|Home Mortgage Interest||Indebtedness up to $1 million||Indebtedness up to $750,000 for contracts dated after 12-15-17|
|Home Equity Loan||Deductible up to indebtedness of $100,000||Nondeductible|
|Miscellaneous Itemized Deductions||Must exceed 2% of AGI||Nondeductible|
|Estate Tax Exemption||$5.6 million per person||$11.2 million per person|