Projected 2019 Tax Rates, Brackets, Standard Deduction Amounts and More

Inflation and cost-of-living adjustments are routinely included in tax legislation, thus the reason there are changes every year to standard deduction amounts, federal gift tax exemptions, and others. Because a higher consumer price index pushes the brackets upward and increases the standard deduction and exemption amounts, the taxes due on the same income will decrease.

Capital gains rates will not change for 2019 but the break points for the rates will change.

Personal exemptions used to further decrease your taxable income before you determined your tax. A person was generally allowed one exemption for themselves, but under the Tax Cuts and Jobs Act there will not be a personal exemption for 2019. But standard deductions were typically doubled for many taxpayers for 2018, and with inflation, the standard deductions are projected to be increased for next year.

For more tax predictions, refer to the article.

See Kelly Phillips Erb, Projected 2019 Tax Rates, Brackets, Standard Deduction Amounts and More, Forbes, September 14, 2018.