IRB 2018-10 (Rev. March 5, 2018) - thurlowpa.com

1 26 CFR : Tax forms and instructions.(Also Part I, 1, 23, 32, 42, 45R, 55, 59, 63, 68,135, 137, 146, 147, 151, 179, 220, 223, 512, 513,877A, 911, 2010, 4261, 6039F, 6323, 6334, 6651,6652, 6695, 6721, 6722.)Rev. Proc. 2018 18 TABLES OF CONTENTSSECTION 1. PURPOSE ..393 section 2. 3. 2018 ADJUSTED ITEMS AS MODIFIED AND Tax Rate Tables1(a)-(e).03 Adoption Earned income Low- income Housing Credit42(h).09 Employee Health Insurance Expense of Small Exemption Amounts for Alternative Minimum Alternative Minimum Tax Exemption for a Child Subject to the Kiddie Tax 59(j).14 Standard Overall Limitation on Itemized income from United States Savings Bonds for Taxpayers Who Pay Qualified HigherEducation Adoption Assistance Private Activity Bonds Volume Cap146(d).21 Loan Limits on Agricultural Bonds147(c)(2) March 05, 2018 Bulletin No. 2018 Personal Election to Expense Certain Depreciable Medical Savings Treatment of Dues Paid to Agricultural or Horticultural Organizations512(d).

2 30 Insubstantial Benefit Limitations for Contributions Associated With CharitableFund-Raising Campaigns513(h).33 Tax Responsibilities of Foreign Earned income Unified Credit Against Estate Passenger Air Transportation Excise Notice of Large Gifts Received from Foreign Persons Against Whom a Federal Tax Lien Is Not Property Exempt from Failure to File Tax Failure to File Certain Information Returns, Registration Statements, Other Assessable Penalties With Respect to the Preparation of Tax Returnsfor Other Failure to File Correct Information Failure to Furnish Correct Payee Statements6722 section 4. 2018 INFLATION ADJUSTED AMOUNTS FOR HEALTH SAVINGS ACCOUNTS UNDER 223 ..400 section 5. EFFECT ON OTHER DOCUMENTS ..400 section 6. EFFECTIVE DATE ..400 section 7. DRAFTING INFORMATION ..400 section 1. PURPOSEThis revenue procedure modifies andsupersedes certain sections of Rev. 58, 2017 45 489, and super-sedes Rev.

3 Proc. 2017 37, 2017 21 , to reflect statutory amendments byAn Act to Provide for Reconciliation Pur-suant to Titles II and V of the ConcurrentResolution on the Budget for Fiscal Year2018, Pub. L. 115 97, 131 Stat. 2504 (theAct). section 2. section 11001(a) of the Actamends 1toprovide a temporary mod-ification to the tax rate tables for taxableyears beginning after December 31, 2017,and before January 1, 2026. The Actchanges the beginning and ending dollaramounts for the brackets, and replaces theexisting tax rates with seven new rates:10%, 12%, 22%, 24%, 32%, 35%, and37%..02 section 11001(b) of the Actamends 6695(g) to include due diligencerequirements for return preparers with re-spect to determining eligibility require-ments to file as head of household (asdefined in section 2(b)) for taxable yearsbeginning after December 31, section 11002 of the Act amends 1f(3) to provide a permanent cost-of-living adjustment based on the ChainedConsumer Price Index for All Urban Con-sumers (C-CPI-U).

4 Any existing itemsthat are not reset for 2018 will be adjustedfor inflation after 2017 based on theC-CPI-U. Items that are reset for 2018will be adjusted for inflation after 2018based on the section 11021 of the Act amends 63(c)(2) to provide a temporary increasein the basic standard deduction for taxableyears beginning after December 31, 2017,and before January 1, 2026. Under 63(c)(2), the basic standard deduction is: $12,000for single individuals and married individu-als filing separate returns; $18,000 for headsof households; and $24,000 for married in-dividuals filing a joint return and survivingspouses. These amounts will be adjusted forinflation for taxable years beginning afterDecember 31, section 11041 of the Act amends 151(d) to provide a temporary set dollaramount of $0 for the personal exemptiondeduction, for taxable years beginning af-ter December 31, 2017, and before Janu-ary 1, section 11046 of the Act amends 68 to provide a temporary suspension ofthe limitation on itemized deductions fortaxable years beginning after December31, 2017, and before January 1, section 11061 of the Act amendssection 2010(c)(3) to provide a tem-porary increase to $10,000,000 of theestate tax exemption, effective for es-tates of decedents dying after December31, 2017, and before January 1, $10,000,000 amount is indexed forinflation for taxable years beginning af-ter December 31, section 12003 of the Act amends 55(d)

5 To provide a temporary increase ofthe exemption amounts and the phaseoutthreshold amounts for the individual alter-native minimum tax (AMT), for taxableyears beginning after December 31, 2017,and before January 1, 2026. The AMTexemption amounts are increased to$109,400 for married taxpayers filing ajoint return (half this amount for marriedBulletin No. 2018 10 March 05, 2018393taxpayers filing a separate return), and$70,300 for all other taxpayers (other thanestates and trusts). The phaseout thresholdamounts are increased to $1,000,000 formarried taxpayers filing a joint return, and$500,000 for all other taxpayers (otherthan estates and trusts)..09 section 13101 of the Act amends 179(b) to provide a permanent increaseof the maximum amount a taxpayer mayexpense under 179(b)(1) to $1,000,000,and of the phaseout threshold amount un-der 179(b)(2) to $2,500,000. Theseamounts will be adjusted for inflation fortaxable years beginning after December31, 3.

6 2018 ADJUSTEDITEMS AS MODIFIED ANDSUPERSEDEDTo reflect statutory amendments madeby the Act, sections , , , , , , , , , , , , , , , , , , , , , , , , , , , , , and of 2017 58 are modified and super-seded to read as follows:.01 Tax Rate Tables. For taxable yearsbeginning in 2018, the tax rate tables un-der 1 are as follows:TABLE 1 - section 1(a) - Married Individuals Filing Joint Returns and Surviving SpousesIf Taxable income Is:The Tax Is:Not over $19,05010% of the taxable incomeOver $19,050 but not over $77,400$1,905 plus 12% of the excess over $19,050 Over $77,400 but not over $165,000$8,907 plus 22% of the excess over $77,400 Over $165,000 but not over $315,000$28,179 plus 24% of the excess over $165,000 Over $315,000 but not over $400,000$64,179 plus 32% of the excess over $315,000 Over $400,000 but not over $600,000$91,379 plus 35% of the excess over $400,000 Over $600,000$161,379 plus 37% of the excess over $600,000 TABLE 2 - section 1(b) Heads of HouseholdsIf Taxable income Is:The Tax Is.

7 Not over $13,60010% of the taxable incomeOver $13,600 but not over $51,800$1,360 plus 12% of the excess over $13,600 Over $51,800 but not over $82,500$5,944 plus 22% of the excess over $51,800 Over $82,500 but not over $157,500$12,698 plus 24% of the excess over $82,500 Over $157,500 but not over $200,000$30,698 plus 32% of the excess over $157,500 Over $200,000 but not over $500,000$44,298 plus 35% of the excess over $200,000 Over $500,000$149,298 plus 37% of the excess over $500,000 TABLE 3 - section 1(c) Unmarried Individuals (other than Surviving Spouses and Heads of Households)If Taxable income Is:The Tax Is:Not over $9,52510% of the taxable incomeOver $9,525 but not over $38,700$ plus 12% of the excess over $9,525 Over $38,700 but not over $82,500$4, plus 22% of the excess over $38,700 Over $82,500 but not over $157,500$14, plus 24% of the excess over $82,500 Over $157,500 but not over $200,000$32, plus 32% of the excess over $157,500 Over $200,000 but not over $500,000$45, plus 35% of the excess over $200,000 Over $500,000$150, plus 37% of the excess over $500,000 March 05, 2018 Bulletin No.

8 2018 10394 TABLE 4 - section 1(d) Married Individuals Filing Separate ReturnsIf Taxable income Is:The Tax Is:Not over $9,52510% of the taxable incomeOver $9,525 but not over $38,700$ plus 12% of the excess over $9,525 Over $38,700 but not over $82,500$4, plus 22% of the excess over $38,700 Over $82,500 but not over $157,500$14, plus 24% of the excess over $82,500 Over $157,500 but not over $200,000$32, plus 32% of the excess over $157,500 Over $200,000 but not over $300,000$45, plus 35% of the excess over $200,000 Over $300,000$80, plus 37% of the excess over $300,000 TABLE 5 - section 1(e) Estates and TrustsIf Taxable income Is:The Tax Is:Not over $2,55010% of the taxable incomeOver $2,550 but not over $9,150$255 plus 24% of the excess over $2,550 Over $9,150 but not over $12,500$1,839 plus 35% of the excess over $9,150 Over $12,500$3, plus 37% of the excess over $12, Credit. For taxableyears beginning in 2018, under 23(a)(3) the credit allowed for an adoption ofa child with special needs is $13, taxable years beginning in 2018,under 23(b)(1) the maximum creditallowed for other adoptions is theamount of qualified adoption expensesup to $13,810.

9 The available adoptioncredit begins to phase out under 23(b)(2)(A) for taxpayers with modified ad-justed gross income in excess of$207,140 and is completely phased outfor taxpayers with modified adjustedgross income of $247,140 or more. (Seesection of this revenue procedurefor the adjusted items relating to adop-tion assistance programs.).05 Earned income Credit.(1)In general. For taxable years be-ginning in 2018, the following amountsare used to determine the earned incomecredit under 32(b). The earned in-come amount is the amount of earnedincome at or above which the maximumamount of the earned income creditis allowed. The threshold phaseoutamount is the amount of adjusted grossincome (or, if greater, earned income )above which the maximum amount ofthe credit begins to phase out. The completed phaseout amount is theamount of adjusted gross income (or, ifgreater, earned income ) at or abovewhich no credit is allowed.

10 The thresh-old phaseout amounts and the completedphaseout amounts shown in the tablebelow for married taxpayers filing ajoint return include the increase pro-vided in 32(b)(3)(B)(i), as adjusted forinflation for taxable years beginning of Qualifying ChildrenItemOneTwoThree or MoreNoneEarned income Amount$10,180$14,290$14,290$6,780 Maximum Amount of Credit$3,461$5,716$6,431$519 Threshold Phaseout Amount (Single, Surviving Spouse,or Head of Household)$18,660$18,660$18,660$8,490 Completed Phaseout Amount (Single, Surviving Spouse,or Head of Household)$40,320$45,802$49,194$15,270 Threshold Phaseout Amount (Married Filing Jointly)$24,350$24,350$24,350$14,170 Completed Phaseout Amount (Married Filing Jointly)$46,010$51,492$54,884$20,950 The instructions for the Form 1040 seriesprovide tables showing the amount of theearned income credit for each type of tax-payer.(2)Excessive Investment income .