Free Income Tax Calculator 2018

Introduction & Importance of the 2018 Income Tax Calculator

The 2018 income tax calculator is an essential financial tool designed to help taxpayers estimate their federal income tax liability for the 2018 tax year. This was the final year before the Tax Cuts and Jobs Act (TCJA) fully took effect, making it a critical transition year for tax planning. Understanding your 2018 tax obligations is particularly important for several reasons:

• Historical Accuracy: For taxpayers who need to amend previous returns or verify past filings
• Financial Planning: Helps in understanding how your tax situation changed with the 2019 tax reforms
• Audit Preparation: Provides documentation support if you’re selected for an IRS audit of your 2018 return
• Comparative Analysis: Allows comparison between 2018 and subsequent years to measure tax reform impact

The 2018 tax year maintained the seven tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) but with different income thresholds than previous years. The standard deduction amounts were $6,500 for single filers, $13,000 for married couples filing jointly, and $9,550 for heads of household. Personal exemptions remained at $4,050 per qualifying individual.

According to IRS Publication 17 (2018), over 150 million individual tax returns were filed for the 2018 tax year, with the average refund amounting to $2,869. This calculator uses the exact tax tables and rules that applied to these filings.

How to Use This 2018 Income Tax Calculator

Our calculator is designed to be intuitive yet comprehensive. Follow these step-by-step instructions to get the most accurate estimate of your 2018 federal income tax:

1. Select Your Filing Status:
   • Single: Unmarried individuals or those legally separated
   • Married Filing Jointly: Married couples combining incomes
   • Married Filing Separately: Married individuals filing separate returns
   • Head of Household: Unmarried individuals supporting dependents
2. Enter Your Total Income:
   • Include all wages, salaries, tips, and other compensation
   • Add interest, dividends, and capital gains
   • Include business income, rental income, and other earnings
   • For 2018, the top marginal rate of 39.6% applied to income over $426,700 (single) or $480,050 (married filing jointly)
3. Choose Deduction Type:
   • Standard Deduction: Fixed amount based on filing status ($6,500 single, $13,000 joint)
   • Itemized Deductions: If you have significant deductible expenses (mortgage interest, medical expenses over 7.5% of AGI, state/local taxes up to $10,000, charitable contributions)
4. Enter Personal Exemptions:
   • For 2018, each exemption reduced taxable income by $4,050
   • Claim one for yourself, one for your spouse (if applicable), and one for each dependent
   • Exemptions begin phasing out at $266,700 (single) or $320,000 (married filing jointly)
5. Add Tax Credits:
   • Common 2018 credits included:
     • Earned Income Tax Credit (up to $6,431 for 3+ children)
     • Child Tax Credit ($2,000 per qualifying child)
     • American Opportunity Credit (up to $2,500 per student)
     • Lifetime Learning Credit (up to $2,000 per return)
6. Review Your Results:
   • The calculator will show your taxable income after deductions and exemptions
   • Federal income tax is calculated using the 2018 tax brackets
   • Effective tax rate shows what percentage of your total income goes to taxes
   • Estimated refund accounts for withholdings and credits (if you entered this data)

Pro Tip: For the most accurate results, have your 2018 W-2 forms, 1099s, and receipts for deductible expenses ready. The IRS reports that electronic filing reduces errors by 21% compared to paper returns.

Formula & Methodology Behind the 2018 Tax Calculation

Our calculator uses the exact IRS formulas and tax tables from 2018. Here’s the detailed methodology:

Step 1: Calculate Adjusted Gross Income (AGI)

AGI = Total Income – Adjustments to Income

Common 2018 adjustments included:

• Educator expenses (up to $250)
• Student loan interest (up to $2,500)
• Alimony payments (for divorce agreements before 2019)
• Contributions to traditional IRAs (up to $5,500, $6,500 if age 50+)

Step 2: Determine Taxable Income

Taxable Income = AGI – (Deductions + Exemptions)

Filing Status	Standard Deduction	Personal Exemption	Total Reduction
Single	$6,500	$4,050	$10,550
Married Filing Jointly	$13,000	$8,100 (2 exemptions)	$21,100
Head of Household	$9,550	$8,100 (2 exemptions)	$17,650

Step 3: Apply 2018 Tax Brackets

The 2018 tax brackets were as follows:

Rate	Single	Married Filing Jointly	Married Filing Separately	Head of Household
10%	Up to $9,525	Up to $19,050	Up to $9,525	Up to $13,600
12%	$9,526 – $38,700	$19,051 – $77,400	$9,526 – $38,700	$13,601 – $51,800
22%	$38,701 – $82,500	$77,401 – $165,000	$38,701 – $82,500	$51,801 – $82,500
24%	$82,501 – $157,500	$165,001 – $315,000	$82,501 – $157,500	$82,501 – $157,500
32%	$157,501 – $200,000	$315,001 – $400,000	$157,501 – $200,000	$157,501 – $200,000
35%	$200,001 – $500,000	$400,001 – $600,000	$200,001 – $300,000	$200,001 – $500,000
37%	Over $500,000	Over $600,000	Over $300,000	Over $500,000

Step 4: Calculate Tax Liability

The tax is calculated using a progressive system where each portion of income is taxed at its corresponding rate. For example, a single filer with $50,000 taxable income would pay:

• 10% on first $9,525 = $952.50
• 12% on next $29,175 ($38,700 – $9,525) = $3,501
• 22% on remaining $11,300 ($50,000 – $38,700) = $2,486
• Total Tax: $952.50 + $3,501 + $2,486 = $6,939.50

Step 5: Apply Tax Credits

Credits directly reduce your tax liability dollar-for-dollar. Common 2018 credits included:

• Child Tax Credit: Up to $2,000 per qualifying child (phaseout begins at $200k single/$400k joint)
• Earned Income Tax Credit: Up to $6,431 for families with 3+ children (income limits applied)
• Education Credits: American Opportunity Credit (up to $2,500) or Lifetime Learning Credit (up to $2,000)
• Saver’s Credit: Up to $2,000 for retirement contributions (income limits applied)

Step 6: Determine Final Tax Due or Refund

Final Tax = Tax Liability – Tax Credits – Withholdings

If the result is positive, you owe that amount. If negative, you’re due a refund.

Real-World Examples: 2018 Tax Scenarios

Example 1: Single Professional with $75,000 Income

Scenario: Emma is a single marketing manager earning $75,000 in 2018. She contributes $3,000 to a traditional IRA and has $2,500 in student loan interest. She takes the standard deduction and claims one personal exemption.

Gross Income:	$75,000
Adjustments:	IRA contribution ($3,000) + Student loan interest ($2,500) = $5,500
Adjusted Gross Income (AGI):	$75,000 – $5,500 = $69,500
Standard Deduction:	$6,500
Personal Exemption:	$4,050
Taxable Income:	$69,500 – $6,500 – $4,050 = $58,950
Tax Calculation:	10% on $9,525 = $952.50 12% on $29,175 = $3,501 22% on $20,250 = $4,455 Total Tax: $8,908.50
Effective Tax Rate:	11.88% ($8,908.50 / $75,000)

Example 2: Married Couple with Children

Scenario: The Johnson family (married filing jointly) has combined income of $120,000. They have two children (ages 8 and 10), own a home with $12,000 mortgage interest, pay $4,000 in state taxes, and donate $3,000 to charity. They choose to itemize deductions.

Gross Income:	$120,000
Adjustments:	$0 (no qualifying adjustments)
Adjusted Gross Income (AGI):	$120,000
Itemized Deductions:	Mortgage interest ($12,000) + State taxes ($4,000) + Charity ($3,000) = $19,000
Personal Exemptions:	4 × $4,050 = $16,200
Taxable Income:	$120,000 – $19,000 – $16,200 = $84,800
Tax Calculation:	10% on $19,050 = $1,905 12% on $58,350 = $7,002 22% on $7,400 = $1,628 Total Tax Before Credits: $10,535
Child Tax Credits:	2 × $2,000 = $4,000
Final Tax Liability:	$10,535 – $4,000 = $6,535
Effective Tax Rate:	5.45% ($6,535 / $120,000)

Example 3: Self-Employed Consultant

Scenario: Michael is a self-employed IT consultant with $95,000 in net business income. He pays $7,000 in self-employment tax (already deducted), contributes $5,500 to a SEP IRA, and takes the standard deduction. He’s single with no dependents.

Gross Business Income:	$95,000
SEP IRA Contribution:	$5,500
Self-Employment Tax Deduction:	$3,500 (half of $7,000 SE tax)
Adjusted Gross Income (AGI):	$95,000 – $5,500 – $3,500 = $86,000
Standard Deduction:	$6,500
Personal Exemption:	$4,050
Taxable Income:	$86,000 – $6,500 – $4,050 = $75,450
Tax Calculation:	10% on $9,525 = $952.50 12% on $29,175 = $3,501 22% on $24,250 = $5,335 24% on $12,500 = $3,000 Total Tax: $12,788.50
Effective Tax Rate:	13.46% ($12,788.50 / $95,000)
Estimated Quarterly Payments Needed:	$3,197.13 per quarter ($12,788.50 ÷ 4)

Data & Statistics: 2018 Tax Year in Review

The 2018 tax year was significant as it represented the final year before the Tax Cuts and Jobs Act (TCJA) fully took effect in 2019. Here’s a comprehensive look at the key statistics and comparisons:

2018 Tax Bracket Comparison by Filing Status

Tax Rate	Single Filers	Married Joint	Married Separate	Head of Household	2017 Comparison (Single)
10%	Up to $9,525	Up to $19,050	Up to $9,525	Up to $13,600	Up to $9,325
15%	N/A	N/A	N/A	N/A	$9,326 – $37,950
12%	$9,526 – $38,700	$19,051 – $77,400	$9,526 – $38,700	$13,601 – $51,800	New bracket in 2018
22%	$38,701 – $82,500	$77,401 – $165,000	$38,701 – $82,500	$51,801 – $82,500	25%: $37,951 – $91,900
24%	$82,501 – $157,500	$165,001 – $315,000	$82,501 – $157,500	$82,501 – $157,500	28%: $91,901 – $191,650
32%	$157,501 – $200,000	$315,001 – $400,000	$157,501 – $200,000	$157,501 – $200,000	33%: $191,651 – $416,700
35%	$200,001 – $500,000	$400,001 – $600,000	$200,001 – $300,000	$200,001 – $500,000	35%: $416,701 – $418,400
37%	Over $500,000	Over $600,000	Over $300,000	Over $500,000	39.6%: Over $418,400

2018 Standard Deduction and Exemption Amounts

Filing Status	2018 Standard Deduction	2017 Standard Deduction	Change	2018 Personal Exemption
Single	$6,500	$6,350	+$150 (2.4%)	$4,050
Married Filing Jointly	$13,000	$12,700	+$300 (2.4%)	$8,100 (2 × $4,050)
Married Filing Separately	$6,500	$6,350	+$150 (2.4%)	$4,050
Head of Household	$9,550	$9,350	+$200 (2.1%)	$6,075 ($4,050 + $2,025)
Dependents	N/A	N/A	N/A	$4,050 each

Key 2018 Tax Statistics from IRS Data

• Total Individual Returns Filed: 153.6 million (IRS SOI Data)
• Average Adjusted Gross Income: $71,457 (up 4.1% from 2017)
• Average Tax Liability: $10,489
• Average Refund Amount: $2,869 (issued to 111.8 million taxpayers)
• E-filing Rate: 90.3% (up from 89.5% in 2017)
• Most Common Deductions:
  • State and local taxes (claimed by 42.6 million returns)
  • Home mortgage interest (claimed by 33.8 million returns)
  • Charitable contributions (claimed by 37.1 million returns)
• Alternative Minimum Tax (AMT) Impact:
  • 4.1 million returns affected by AMT (down from 4.5 million in 2017)
  • Average AMT amount: $7,154
• Earned Income Tax Credit (EITC):
  • 25.0 million returns claimed EITC
  • Total EITC amount: $63.7 billion
  • Average EITC amount: $2,547

Expert Tips for Maximizing Your 2018 Tax Situation

Deduction Optimization Strategies

1. Bundle Deductions:
   • If your itemized deductions are close to the standard deduction amount, consider bunching deductible expenses into alternate years
   • Example: Pay January 2019 mortgage payment in December 2018 to increase current year’s interest deduction
2. Maximize Retirement Contributions:
   • 2018 limits: $18,500 for 401(k)/403(b) ($24,500 if age 50+)
   • $5,500 for IRA ($6,500 if age 50+)
   • SEP IRA limit: 25% of net self-employment income (max $55,000)
3. Leverage Above-the-Line Deductions:
   • These reduce AGI and are available even if you take the standard deduction
   • Common options: Student loan interest, educator expenses, HSA contributions
4. Optimize Charitable Giving:
   • Donate appreciated stock instead of cash to avoid capital gains tax
   • Consider donor-advised funds to bunch multiple years’ donations
   • Document all cash donations (regardless of amount) and get receipts for property donations

Credit Maximization Techniques

• Child Tax Credit:
  • Worth up to $2,000 per qualifying child under 17
  • $1,400 is refundable (can be received even if you owe no tax)
  • Phaseout begins at $200k single/$400k joint
• Earned Income Tax Credit:
  • Maximum credit: $6,431 (3+ children), $5,716 (2 children), $3,461 (1 child), $519 (no children)
  • Income limits: $49,194 (married with 3+ children) to $15,270 (single with no children)
• Education Credits:
  • American Opportunity Credit: Up to $2,500 per student for first 4 years of college (40% refundable)
  • Lifetime Learning Credit: Up to $2,000 per return for any post-secondary education
  • Income phaseouts apply (modified AGI $80k-$90k single, $160k-$180k joint)
• Saver’s Credit:
  • Credit of 10%-50% of retirement contributions up to $2,000 ($4,000 if married)
  • Income limits: $31,500 (single), $63,000 (married)

Self-Employment Tax Strategies

• Deduct Half of SE Tax:
  • The employer portion (7.65%) of self-employment tax is deductible
  • For 2018, this was calculated on Schedule SE and deducted on Form 1040 line 27
• Quarterly Estimated Payments:
  • Avoid underpayment penalties by paying 100% of prior year’s tax or 90% of current year’s tax
  • Due dates: April 17, June 15, September 17, 2018, and January 15, 2019
• Home Office Deduction:
  • Simplified method: $5 per sq ft up to 300 sq ft (max $1,500)
  • Regular method: Actual expenses based on percentage of home used for business
• Retirement Plan Options:
  • Solo 401(k): $18,500 employee contribution + 25% of net earnings (max $55,000 total)
  • SEP IRA: 25% of net earnings (max $55,000)
  • SIMPLE IRA: $12,500 employee contribution + 3% employer match

Audit Protection Tips

• Document Everything:
  • Keep receipts for all deductions for at least 3 years (6 years if you omitted income)
  • Use digital tools to organize records (scanned receipts, mileage logs, etc.)
• Avoid Common Red Flags:
  • High deduction-to-income ratios (especially for charitable donations)
  • Claiming 100% business use of a vehicle
  • Rounding numbers to whole dollars
  • Failing to report all income (IRS gets copies of all 1099s and W-2s)
• Home Office Deduction:
  • Only claim if you have a dedicated space used exclusively for business
  • Be prepared to show photos or floor plans if audited
• Hobby vs. Business:
  • If your “business” shows losses for 3+ years, IRS may classify it as a hobby
  • Keep detailed records showing profit motive (business plans, marketing efforts)

Interactive FAQ: Your 2018 Tax Questions Answered

What was the deadline for filing 2018 taxes? +

The original deadline for filing 2018 federal income tax returns was April 15, 2019. However, because April 15 fell on a Monday and Emancipation Day (a holiday in Washington D.C.) was observed on April 16, the deadline was extended to April 17, 2019 for most taxpayers.

Taxpayers in Maine and Massachusetts had until April 19, 2019 due to the Patriots’ Day holiday in those states.

If you requested an extension by filing Form 4868, you had until October 15, 2019 to file your return, though any taxes owed were still due by the April deadline to avoid penalties.

Can I still file my 2018 taxes and get a refund? +

Yes, you can still file your 2018 tax return to claim a refund. The IRS generally allows you to claim a refund for up to 3 years after the original due date of the return. For 2018 taxes, this means you have until April 15, 2022 to file and claim your refund.

Important notes:

• After this date, the IRS keeps your refund money
• If you owe taxes for 2018, you should file as soon as possible to minimize penalties and interest
• You’ll need to mail a paper return (e-filing is no longer available for 2018)
• Use the IRS Get Transcript tool to get your 2018 wage and income information

According to IRS data, there was $1.4 billion in unclaimed refunds from 2018 as of 2022, with the average unclaimed refund being $878.

What were the 2018 tax brackets compared to 2017? +

The 2018 tax brackets saw several changes from 2017, though the Tax Cuts and Jobs Act (TCJA) changes were mostly effective for 2019. Here’s a detailed comparison:

Tax Rate	2018 Single Filers	2017 Single Filers	Change
10%	Up to $9,525	Up to $9,325	+$200
15%	N/A (replaced by 12%)	$9,326 – $37,950	Eliminated
12%	$9,526 – $38,700	N/A (new bracket)	New
22%	$38,701 – $82,500	25%: $37,951 – $91,900	Lower rate, adjusted brackets
24%	$82,501 – $157,500	28%: $91,901 – $191,650	Lower rate, adjusted brackets
32%	$157,501 – $200,000	33%: $191,651 – $416,700	Lower rate, adjusted brackets
35%	$200,001 – $500,000	35%: $416,701 – $418,400	Expanded bracket
37%	Over $500,000	39.6%: Over $418,400	Lower rate, higher threshold

Key observations:

• The 2018 brackets were slightly adjusted for inflation from 2017
• The 15% bracket was replaced with a 12% bracket (though the income range changed)
• Most middle-income taxpayers saw their marginal rates decrease by 1-3 percentage points
• The top rate dropped from 39.6% to 37%, but the income threshold increased significantly

How do I amend my 2018 tax return if I made a mistake? +

To correct mistakes on your 2018 tax return, you’ll need to file Form 1040-X, Amended U.S. Individual Income Tax Return. Here’s the step-by-step process:

1. Gather Your Documents:
   • Original 2018 tax return (Form 1040)
   • Any new or corrected documents (W-2s, 1099s, receipts)
   • Form 1040-X (available on IRS website)
2. Complete Form 1040-X:
   • Part I: Explain what you’re changing and why
   • Part II: Show the original amounts, changes, and corrected amounts
   • Part III: Provide a detailed explanation of your changes
3. Attach Supporting Documents:
   • Any forms or schedules that are changing
   • New or corrected W-2s or 1099s
   • Receipts for additional deductions or credits
4. Mail Your Amended Return:
   • You cannot e-file an amended return – it must be mailed
   • Send to the IRS address for your state (listed in Form 1040-X instructions)
   • If you’re due a refund, you can cash the original refund check while your amendment is processed
5. Track Your Amendment:
   • Processing typically takes 8-12 weeks
   • Use the Where’s My Amended Return? tool to check status
   • You’ll receive a notice when processing is complete

Important Notes:

• You generally have 3 years from the original filing deadline to amend a return (until April 15, 2022 for 2018 returns)
• If you’re amending to claim an additional refund, file within 3 years
• If you owe additional tax, file as soon as possible to minimize penalties and interest
• You may need to amend your state tax return as well

Common Reasons to Amend:

• You forgot to claim deductions or credits
• Your filing status was incorrect
• You received additional income documents after filing
• You need to correct income, deductions, or credits
• You claimed dependents incorrectly

What were the 2018 standard mileage rates for business use? +

The IRS standard mileage rates for 2018 were as follows:

Purpose	2018 Rate	2017 Rate	Change
Business	54.5 cents per mile	53.5 cents per mile	+1 cent
Medical/Moving	18 cents per mile	17 cents per mile	+1 cent
Charitable	14 cents per mile	14 cents per mile	No change

Key Rules for Business Mileage:

• You can use either the standard mileage rate or actual expenses (but must choose when you first use the vehicle for business)
• If you use the standard rate, you can still deduct:
  • Parking fees and tolls
  • Interest on a car loan (if self-employed)
  • Personal property taxes on the vehicle
• You must keep a contemporaneous mileage log showing:
  • Date of each trip
  • Starting and ending odometer readings
  • Business purpose of the trip
  • Total miles driven for the trip
• Commuting miles (from home to regular workplace) are never deductible
• If you’re reimbursed by your employer, you can’t also deduct the miles

Example Calculation:

If you drove 15,000 business miles in 2018, your deduction would be:

15,000 miles × $0.545 = $8,175 business mileage deduction

What were the 2018 contribution limits for retirement accounts? +

The 2018 contribution limits for various retirement accounts were as follows:

Account Type	2018 Limit	2017 Limit	Catch-Up (Age 50+)	Income Phaseout Begins
401(k), 403(b), most 457 plans	$18,500	$18,000	$6,000	N/A
IRA (Traditional or Roth)	$5,500	$5,500	$1,000	Traditional: $63k (single), $101k (married) Roth: $120k (single), $189k (married)
SEP IRA	25% of net earnings (max $55,000)	25% of net earnings (max $54,000)	N/A	N/A
SIMPLE IRA	$12,500	$12,500	$3,000	N/A
Solo 401(k)	$18,500 employee + 25% employer (max $55,000 total)	$18,000 employee + 25% employer (max $54,000 total)	$6,000	N/A
Health Savings Account (HSA)	$3,450 (individual), $6,900 (family)	$3,400 (individual), $6,750 (family)	$1,000	N/A

Important Notes:

• Contributions to traditional 401(k)s and IRAs reduce your 2018 taxable income
• Roth contributions don’t reduce current-year taxes but grow tax-free
• For 2018, you had until April 15, 2019 to make IRA contributions (or October 15, 2019 if you filed an extension)
• Employer contributions to SEP IRAs could be made up until the extended due date of your return
• The IRS provides detailed guidance on retirement contribution rules

Example Scenario:

Sarah, a 45-year-old single filer with $70,000 income in 2018, could:

• Contribute $18,500 to her 401(k), reducing taxable income to $51,500
• Contribute $5,500 to a traditional IRA, further reducing taxable income to $46,000
• If she had an HSA-qualified health plan, she could contribute $3,450 to an HSA (triple tax benefit: deductible contribution, tax-free growth, tax-free withdrawals for medical expenses)

How did the 2018 tax law changes affect my return compared to 2017? +

The Tax Cuts and Jobs Act (TCJA) was signed into law in December 2017, with most provisions taking effect for the 2018 tax year. Here are the key changes that affected 2018 returns compared to 2017:

Major Changes That Took Effect in 2018:

1. New Tax Brackets and Rates:
   • Seven brackets remained, but most rates were lowered
   • 10%, 12%, 22%, 24%, 32%, 35%, and 37% (down from 39.6% in 2017)
   • Bracket widths were adjusted, generally providing tax cuts across income levels
2. Increased Standard Deduction:
   • Nearly doubled from 2017:
     • Single: $6,500 (up from $6,350)
     • Married Joint: $13,000 (up from $12,700)
     • Head of Household: $9,550 (up from $9,350)
   • This change made itemizing less beneficial for many taxpayers
3. Personal Exemptions Suspended:
   • In 2017, each exemption reduced taxable income by $4,050
   • For 2018, personal exemptions were suspended (set to $0)
   • This was offset by the increased standard deduction and child tax credit
4. Enhanced Child Tax Credit:
   • Increased from $1,000 to $2,000 per qualifying child
   • $1,400 of the credit became refundable (up from $1,000)
   • Phaseout thresholds increased significantly to $200k (single) and $400k (married)
5. State and Local Tax (SALT) Deduction Cap:
   • New $10,000 limit on combined state/local income, sales, and property tax deductions
   • This particularly affected taxpayers in high-tax states like California, New York, and New Jersey
6. Mortgage Interest Deduction Changes:
   • Limited to interest on up to $750,000 of acquisition debt (down from $1 million)
   • Home equity loan interest only deductible if used for home improvements
7. Miscellaneous Itemized Deductions Suspended:
   • No longer able to deduct:
     • Unreimbursed employee expenses
     • Tax preparation fees
     • Investment expenses
     • Safe deposit box fees
8. Alimony Treatment Changed (for post-2018 divorces):
   • For divorces finalized after 2018, alimony is no longer deductible by the payer or taxable to the recipient
   • For 2018, the old rules still applied (deductible by payer, taxable to recipient)

What Stayed the Same in 2018:

• Capital gains tax rates remained at 0%, 15%, and 20%
• Student loan interest deduction remained (up to $2,500)
• Educator expense deduction remained ($250)
• Charitable contribution deductions remained (with slightly higher limits)
• Medical expense deduction threshold decreased to 7.5% of AGI (from 10% in 2017)

Who Benefited Most from the 2018 Changes:

• Families with children (due to increased child tax credit)
• High-income earners (due to lower top rates and higher bracket thresholds)
• Business owners (due to new 20% qualified business income deduction)
• Taxpayers who didn’t itemize (due to increased standard deduction)

Who Might Have Seen Higher Taxes:

• Taxpayers in high-tax states (due to SALT cap)
• Those with large unreimbursed employee expenses
• Some homeowners with large mortgages
• Taxpayers with complex itemized deductions

According to the Tax Policy Center, about 65% of taxpayers saw a tax cut in 2018, with the average cut being about $1,260. However, about 6% of taxpayers saw a tax increase, primarily those in high-tax states or with specific deduction patterns.