Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 628 other followers

  • Blog Stats

    • 240,915 hits
  • Posts By Day

    October 2017
    M T W T F S S
    « Sep    
     1
    2345678
    9101112131415
    16171819202122
    23242526272829
    3031  
  • Subscribe

  • Special Pages

2018 Federal Inflation Adjustments

Posted by taxguru on October 7, 2017

Every year, some parts of the tax code, such as the beginning and ending points for the various personal income tax brackets, are adjusted for the change in the government’s official Consumer Price Index (CPI) as of August 31.  This is supposed to prevent “bracket creep,” where people whose income is just keeping pace with inflation are pushed into the higher percentage brackets. 

Not all tax related amounts in the Tax Code adjust automatically for inflation.  There are scores of tax related figures in the Tax Code that do not ever get adjusted and have been the same for several decades, waiting for an official Act of Congress to be adjusted for the effects of inflation. 

As has been the tradition, tax publishers are the first to do the calculations and release the inflation adjustments for the next year.  IRS will release their official inflation adjustments for 2018 in the next month or so, assuming those IRS employees are still around in IRS HQ.

The first such report with 2018 adjusted amounts that I have come across is this 16 page pdf from Thomson Reuters. 

Projected 2018 Inflation-Adjusted Tax Brackets and Other Key Figures

 

As I have done in previous years, I will post links to other such reports, as I learn about them.

Sorry, the comment form is closed at this time.

 
%d bloggers like this: