"The hardest thing in this world to understand is the income tax."
- Albert Einstein
2019 Estimated Income Tax Brackets and Rates
 
For 2019, the estate and gift tax exemption of $11,400,000, up from a total of $11,180,000 for estates of decedents who died in 2018.

For tax year 2019, the top rate is 37 percent for individual single taxpayers with incomes greater than $510,300 ($612,350 for married couples filing jointly). The other rates are:

 
2019 Single Taxable Income Brackets and Rates 
Taxable Income Bracket Tax Owed
 
$0 to $9,700 10% of Taxable Income
$9,701 to $39,475 $970 plus 12% of the excess over $9,700
$39,476 to $84,200 $4,543 plus 22% of the excess over $39,475
$84,201 to $160,725 $14,382.50 plus 24% of the excess over $84,200
$160,726 to $204,100 $32,748.50 plus 32% of the excess over $160,725
$204,101 to $510,300 $46,628.50 plus 35% of the excess over $204,100
$510,301+ $153,798.50 plus 37% of the excess over $510,300

 
2019 Married Filing Jointly and Surviving Spouses Taxable Income Brackets and Rates
Taxable Income Bracket Tax Owed
$0 to $17,400 10% of Taxable Income
$19,401 to $79,950 $1,940 plus 12% of the excess over $19,400
$79,951 to $168,400 $9,086 plus 22% of the excess over $78,950
$168,401 to $321,450 $28,765 plus 24% of the excess over $168,400
$321,501 to $408,200 $65,497 plus 32% of the excess over $321,450
$408,201 to $612,350 $93,257 plus 35% of the excess over $408,200
$612,351+ $164,709.50 plus 37% of the excess over $612,350
 
2019 Head of Household Taxable Income Brackets and Rates
Taxable Income Bracket Tax Owed
$0 to $13,350 10% of taxable income
$13,350 to $52,850 $1,396 plus 15% of the excess over $13,850
$52,851 to $84,200 $6,065 plus 22% of the excess over $52,850
$84,201 to $160,700 $31,322 plus 32% of the excess over $84,200
$160,7001 to $204,100 $44,210 plus 35% of the excess over $160,700
$204,101 to $510,300 $45,210 plus 35% of the excess over $204,100
$510,301+ $152,380 plus 37% of the excess over $510,300
 
 
 
Standard Deduction and Personal Exemption
 
2019 Standard Deduction
Filing Status Deduction Amount
Single $12,200
Married Filing Jointly $24,400
Married Filing Separately $12,200
Head of Household $18,350
 
  • For 2019, the additional standard deduction amount for the aged or the blind is $1,300. The additional standard deduction amount increases to $1,650 for unmarried taxpayers.
  • For 2019, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $350 and the individual’s earned income (not to exceed the regular standard deduction amount).
There will be no personal exemption amount for 2019. The personal exemption amount was set to zero (0) under the Tax Cuts and Jobs Act.

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two.
The AMT uses an alternative definition of taxable income called Alternative Minimum Taxable Income (AMTI). To prevent low- and middle-income taxpayers from being subject to the AMT, taxpayers are allowed to exempt a significant amount of their income from AMTI. However, this exemption phases out for high-income taxpayers. The AMT is levied at two rates: 26 percent and 28 percent.
The AMT exemption amount for 2019 is $71,700 for singles and $111,700 for married couples filing jointly.

 
2019 Alternative Minimum Tax (ATM) Exemptions
Filing Status Exemption Amount
Single $71,700
Married Filing Jointly & Surviving Spouses $111,700
Married Filing Separately $55,850
Trusts & Estates $25,000
 
 
Earned Income Tax Credit

2019’s maximum Earned Income Tax Credit for singles, heads of households, and joint filers is $529, if the filer has no children. The credit is $3,526 for one child, $5,828 for two children, and $6,557 for three or more children. All of the aforementioned are relatively small increases from 2018.

 
 
 
Below are links to tax websites and news services:
 
IRS: http://www.irs.gov/
 
FTB: http://www.ftb.ca.gov/index.shtml
 
IRS Newsroom: http://www.irs.gov/newsroom/rss/0,,id=222213,00.rss
 
Forbes: http://www.forbes.com
 
Spidell Publishing, Inc. (California tax law materials, seminars and webinars): www.spidell.com