Template talk:TaxRateTable

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Tables

A more complete table from wikipedia:

Filing status and annual income - 2017 Ordinary income tax rate Long-term capital gain rate
Single Married Filing Jointly or Qualified Widow(er) Married Filing Separately Head of Household Trusts and Estates Collectibles and certain small business stock Unrecaptured Section 1250 gain Other investments
$0–$9,325 $0–$18,650 $0–$9,325 $0–$13,350 n/a 10% 10% 10% 0%
$9,326–$37,950 $18,651–$75,900 $9,326–$37,950 $13,351–$50,800 $0–$2,550 15% 15% 15% 0%
$37,951–$91,900 $75,901–$153,100 $37,951–$76,550 $50,801–$131,200 $2,551–$6,000 25% 25% 25% 15%
$91,901–$191,650 $153,101–$233,350 $76,551–$116,675 $131,201–$212,500 $6,001–$9,150 28% 28% 25% 15%
$191,651–$416,700 $233,351–$416,700 $116,676–$208,350 $212,501–$416,700 $9,151–$12,500 33% 28% 25% 15%
$416,701-$418,400 $416,701-$470,700 $208,351-$235,350 $416,701-$444,550 n/a 35% 28% 25% 15%
$418,401+ $470,701+ $235,351+ $444,551+ $12,501+ 39.6% 28% 25% 20%

--Blbarnitz 06:59, 26 December 2017 (EST)

Here is the table for 2018. Source: Tax Rates spreadsheet, "2018 tax rates - consolidated" tab, then excel2wiki converter and some formatting tweaks.

I don't understand how to interpret long-term capital gain rate legalese, so I left the cells blank.

Filing status and annual income - 2018 Ordinary income tax rate Long-term capital gain rate
Single Married Filing Jointly or Qualified Widow(er) Married Filing Separately Head of Household Trusts and Estates Collectibles and certain small business stock Unrecaptured Section 1250 gain Other investments
$0-$9,525 $0-$19,050 $0-$9,525 $0-$13,600 $0-$2,550 10%
$9,526-$38,700 $19,051-$77,400 $9,526-$38,700 $13,601-$51,800 n/a 12%
$38,701-$82,500 $77,401-$165,000 $38,701-$82,500 $51,801-$82,500 n/a 22%
$82,501-$157,500 $165,001-$315,000 $82,501-$157,500 $82,501-$157,500 $2,551-$9,150 24%
$157,501-$200,000 $315,001-$400,000 $157,501-$200,000 $157,501-$200,000 n/a 32%
$200,001-$500,000 $400,001-$600,000 $200,001-$300,000 $200,001-$500,000 $9,151-$12,500 35%
$500,001+ $600,001+ $300,001+ $500,001+ $12,501+ 37%

--LadyGeek 20:54, 26 December 2017 (EST)

Based on the information in the sections below (and checking against the final bill), I have created two tables. Consolidating everything into one table will require a lot of supplemental notes. It's much cleaner to create two tables. I think it's important to include rates for trusts and estates, as they are now used for Kiddie tax.

I would like an expert to review these tables.

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Experts are requested to review the following two tables:
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Filing status and annual taxable income - 2018 Ordinary income tax rate Long-term capital gain rate
Single Married Filing Jointly or Qualified Widow(er) Married Filing Separately Head of Household Trusts and Estates Collectibles and certain small business stock[* 1] Unrecaptured Section 1250 gain
$0-$9,525 $0-$19,050 $0-$9,525 $0-$13,600 $0-$2,550 10% 10% 10%
$9,526-$38,700 $19,051-$77,400 $9,526-$38,700 $13,601-$51,800 n/a 12% 12% 12%
$38,701-$82,500 $77,401-$165,000 $38,701-$82,500 $51,801-$82,500 n/a 22% 22% 22%
$82,501-$157,500 $165,001-$315,000 $82,501-$157,500 $82,501-$157,500 $2,551-$9,150 24% 24% 24%
$157,501-$200,000 $315,001-$400,000 $157,501-$200,000 $157,501-$200,000 n/a 32% 28% 25%
$200,001-$500,000 $400,001-$600,000 $200,001-$300,000 $200,001-$500,000 $9,151-$12,500 35% 28% 25%
$500,001+ $600,001+ $300,001+ $500,001+ $12,501+ 37% 28% 25%
  1. Collectibles are defined in 26 USC 408(m). Small business stocks are per Section 1202. Reference: Alistair M. Nevius (May 1, 2013). "Qualified small business stock". Journal of Accountancy. https://www.journalofaccountancy.com/issues/2013/may/20137453.html.

In addition, there is a 3.8% Medicare tax rate on investment income in excess of an adjusted gross income of $200,000 ($250,000 for married filing jointly), and 0.9% on salary and self-employment income in excess of this level. See: ACA net investment income tax

Filing status and annual taxable income - 2018 Long-term capital gain rate
Single Married Filing Jointly or Qualified Widow(er) Married Filing Separately Head of Household Trusts and Estates Qualified dividends and other investments
$0-$38,600 $0-$77,200 $0-$38,600 $0-$51,700 $0-$2,600 0%
$38,601-$425,800 $77,201 - $479,000 $38,601-$239,500 $51,701-$452,400 $2,601-$12,700 15%
$425,801+ $479,001+ $425,801+ $452,401+ $12,701+ 20%

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End of expert table review.
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--LadyGeek 16:31, 28 December 2017 (EST)

For the above, the table source is in this Google Drive spreadsheet: Tax Rates spreadsheet, "2018 tax rates - consolidated" tab. I have requested a consensus from the forum members. See Bogleheads® forum post: Re: Wiki - Tax law changes --LadyGeek 16:52, 28 December 2017 (EST)

The above table has been revised to incorporate forum discussion comments. --LadyGeek 21:26, 30 December 2017 (EST)

The above tables have been reviewed by forum member bsteiner. I have modified the page content with the new tables. --LadyGeek 19:45, 2 January 2018 (EST)

Mike Piper on H.R. 1 capital gains and qualified dividends

2018 Tax Brackets, Standard Deduction, and Other Changes

Long-term capital gains and qualified dividends will still have 0%, 15%, and 20% tax rates. The income thresholds separating those different tax rates, however, have changed. For 2018, long-term capital gains and qualified dividends will face the following tax rates:

  • 0% tax rate if they fall below $77,200 of taxable income if married filing jointly, $51,700 if head of household, or $38,600 if filing as single or married filing separately.
  • 15% tax rate if they fall above the 0% threshold but below $479,000 if married filing jointly, $452,400 if head of household, $425,800 if single, or $239,500 if married filing separately.
  • 20% tax rate if they fall above the 15% threshold.

Note that threshold for the top of the 0% tax rate is close to but not the same as the top of the 12% tax bracket.

The 3.8% tax on net investment income that can apply if your modified adjusted gross income exceeds $200,000 ($250,000 if married filing jointly) is unchanged.

My guess is that the 12% bracket inconsistency will be fixed by the technical revision process.--Blbarnitz 13:36, 27 December 2017 (EST)

Terminology and application

  • The capital gains tax on collectibles is most frequently applicable, in an investment sense. to precious metals investment. The tax is one's marginal tax rate up to a maximum 28%
  • The unrecaptured Section 1250 gain is applicable to investors holding depreciable investment real estate.

The unrecaptured section 1250 gain is a type of depreciation-recapture income that is realized on the sale of depreciable real estate. Unrecaptured Section 1250 income is taxed at a 25% maximum capital-gains rate, or less in some cases. Unrecaptured Section 1250 gains are only realized when there is a net Section 1231 gain that is not subject to recapture as ordinary income.

Read more: Unrecaptured Section 1250 Gain, investopedia --Blbarnitz 13:51, 27 December 2017 (EST)