2018 Tax Brackets

2018 Tax Brackets are going to be vastly different from 2017. You really need to understand how the brackets work in order to do your best planning.

The first thing to understand is the difference between Total Income, Adjusted Gross Income and Taxable Income.

I can not stress this enough, your tax bracket is based on you TAXABLE INCOME! That is the amount of money you have after you factor in all your income and subtract any deductions and/or exemptions.

Your total income is line 43 on page 2 of your 1040. Your adjusted gross income is line 37 on page 1 of your 1040.

The difference between the two is for your itemized or standard deductions. Standard deductions GREATLY increased with the new tax law. k per person under 65 and ,300 per person 65 and over.

Now, the difference between your total income and your adjusted gross income, all on page 1 of the 1040 is the amount you were able to deduct “above the line”.

Above the line deductions are deductions you can take EVEN if you don’t itemize. IRA contributions, some teacher expenses, health expenses etc. You can take these deductions even if your standard deduction is larger than your itemized deductions.

Thus above the line deductions are more valuable than regular deductions. Makes perfect sense, right!!!

Well guess what? In 2019 the whole 1040 that we’ve all grown to know and love will change. Purportedly it will become “simpler”.

We will see. So, don’t tattoo these line items on your forearm yet. Just remember for 2018 and maybe no more , these are the tax brackets and may change.

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Click Here to Leave a Comment Below 15 comments
Keto - Walk - Get Fit

After watching this, I am feeling better about filling this year. Just need to know what I can write off for work and write off for property taxes and …?

Thank you


Great information. Thank you!

Tim Schneider

Thank you

Kpop Origami

Can you do a video about student loan forgiveness. I believe there would be a giant tax the year that student loans are forgiven.

Dayne Scott

Hi Josh, a little confused as well. My wife and I got married this year so I’m debating filing jointly or filing separately. I think jointly will have more benefits though. We also bought a house in California for $650k this year. So if my wife and I use the $24k standard deduction automatically, does that mean I can’t use the additional $7k in property taxes? I also pay mortgage insurance that I should be able to write off too. Please advise and great video!

Martin Susort

67 trying to understand my financial future a little better

clint collins

What deduction do I get for kids under 17?

clint collins


salma abdulmajeed

Great examples.

carol redinger

Thanks! Great info

Fortnitefunny 2000

That guy not used the new one

Dasar Fortnite Clips

You said every person under the age of 65 gets a 12,000 deduction. Why is that?

Common Sense

Josh, I'm confused about why you didn't take 2 exemptions in the illustration. What happened to exemptions? (I hope we still can take them without itemizing.) Thanks.

Cory Grimm

Josh, is this Nest Egg software available to the public? Thanks.

joe hall

Can we write off our property taxes without itemizing?  I have been confused with the 10k maximum on property tax. Hope this isn't a foolish question.


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