Tax numbers to know Hard to think about taxes? We make it easier. Taxable income. Capital gains. Education savings. Retirement planning. They re all different. Which means when it comes to taxes, there s a lot to know. While we don t offer tax advice, E*TRADE has tools and resources to help make things a little clearer. It s hard earned money and we d like to help our customers keep more of it. 2018* Tax Rates Rate Individuals 10% Up to $9,525 Up to $19,050 Up to $9,525 Up to $13,600 12% $9,526 to $38,700 $19,051 to $77,400 $9,526 to $38,700 $13,601 to $51,800 22% $38,701 to $82,500 $77,401 to $165,000 $38,701 to $82,500 $51,801 to $82,500 24% $82,501 to $157,500 $165,001 to $315,000 $82,501 to $157,500 $82,501 to $157,500 32% $157,501 to $200,000 $315,001 to $400,000 $157,501 to $200,000 $157,501 to $200,000 35% $200,001 to $500,000 $400,001 to $600,000 $200,001 to $300,000 $200,001 to $500,000 37% over $500,000 over $600,000 over $300,000 over $500,000 2017* Tax Rates Rate Individuals 10% Up to $9,325 Up to $18,650 Up to $9,325 Up to $13,350 15% $9,326 to $37,950 $18,651 to $75,900 $9,326 to $37,950 $13,351 to $50,800 25% $37,951 to $91,900 $75,901 to $153,100 $37,951 to $76,550 $50,801 to $131,200 28% $91,901 to $191,650 $153,101 to $233,350 $76,551 to $116,675 $131,201 to $212,500 33% $191,651 to $416,700 $233,351 to $416,700 $116,676 to $208,350 $212,501 to $416,700 35% $416,701 to $418,400 $416,701 to $470,700 $208,351 to $235,350 $416,701 to $444,550 39.6% over $418,400 over $470,700 over $235,350 over $444,550 Estates and Trusts 15% Up to $2,550 10% Up to $2,550 25% $2,551 to $6,000 24% $2,551 to $9,150 28% $6,001 to $9,150 35% $9,151 to $12,500 33% $9,151 to $12,500 37% over $12,500 39.6% over $12,500 For additional tax information and tools, visit our Tax Center at etrade.com/tax. For financial advice, speak with an E*TRADE Financial Consultant. * Visit our site at etrade.com Call us at 800-387-2331 Download our app at etrade.com/mobile 1
Kiddie Tax (Tax on a child s investment and other unearned income) Tax Year Unearned income threshold Unearned income taxed at Estates and Trusts rate 2017 $1,050 $2,100 2018 $1,050 $2,100 2018 Trust Tax Rates These will now apply for the kiddie tax 10% Up to $2,500 24% $2,551 to $9,150 35% $9,151 to $12,500 37% over $12,500 Children affected: children under age 18 (or under age 24 for full-time students) Beginning in 2018, a child s unearned income will be taxed at trust tax rates, rather than at the parent s tax rate For more information on kiddie tax, visit irs.gov/taxtopics/tc553 Long-Term Capital Gains/Qualified Dividend Tax Rates 2018* Long-Term Capital Gains Rates Rate Estates and Trusts 0% Up to $38,600 Up to $77,200 Up to $38,600 Up to $51,700 Up to $2,600 15% $38,601 to $425,800 $77,201 to $479,000 $38,601 to $239,500 $51,701 to $452,400 $2,601 to $12,700 20% over $425,800 over $479,000 over $239,500 over $452,400 over $12,700 2017* Long-Term Capital Gains Rates Rate 2017 tax bracket 0% 10% to 15% bracket 15% 25% to 35% bracket 20% 39.6% bracket * Tax Year 2
Standard Deductions Married Additional deduction for blind or over age 65 or 2017 $6,350 $12,700 $6,350 $9,350 2018 $12,000 $24,000 $12,000 $18,000 $1,250 $1,550 $1,300 $1,600 Estate and Gifting Maximum transfer tax rate Estate tax exemption Annual gifting limit Generation skipping tax exemption 2017 40% $5,490,000 $14,000 $5,490,000 2018 40% $11,200,000 $15,000 $11,200,000 Capital Loss Limit 2017 $3,000 $3,000 $1,500 2018 $3,000 $3,000 $1,500 Personal Exemption Subject to phaseout once AGI** exceeds: Amount 2017 $4,050 $261,500 $313,800 $156,900 $287,650 2018 N/A * ** AGI = adjusted gross income 3
Retirement IRA and Roth contributions Under age 50 $5,500 $5,500 Age 50 and over $6,500 $6,500 Phaseout for deducting IRA contribution (if participant in employer retirement plan) $99,000 $119,000 MAGI** $101,000-$121,000 MAGI** or head of household $62,000 $72,000 MAGI** $63,000-$73,000 MAGI** Spouse only is participant $186,000 $196,000 MAGI** $189,000-$199,000 MAGI** *** Up to $10,000 MAGI** Up to $10,000 MAGI** Phaseout of Roth contribution eligibility $186,000 $196,000 MAGI** $189,000-$199,000 MAGI** or head of household $118,000 $133,000 MAGI** $120,000-$135,000 MAGI** *** Up to $10,000 MAGI** Up to $10,000 MAGI** SEP contribution Up to 25% of compensation, limit $54,000 $55,000 Compensation to participate in SEP $600 $600 SIMPLE elective deferral Under age 50 $12,500 $12,500 Age 50 and over $15,500 $15,500 401(k), 403(b), 457, and SARSEP elective deferrals Under age 50 $18,000 $18,500 Age 50 and over $24,000 $24,500 Limit on additions to defined contribution plan $54,000 $55,000 Annual compensation taken into account for qualified plans $270,000 $275,000 * ** MAGI = modified adjusted gross income *** If you file and did not live with your spouse at any time during the year, your IRA deduction is determined under the filing status. 4
Education 529 plans Individual contributions (per year before a gift tax) $14,000 $15,000 Married couple split-gift contributions (per year before a gift tax) Accelerate 5 years of gifting into 1 year per individual*** $28,000 $30,000 $70,000 $75,000 Per couple*** $140,000 $150,000 Coverdell ESA Contribution $2,000 $2,000 Phaseout for Coverdell ESA $95,000 $110,000 MAGI** $95,000 $110,000 MAGI** Joint $190,000 $220,000 MAGI** $190,000 $220,000 MAGI** Phaseout for student loan interest deduction $65,000 $80,000 $65,000 $80,000 Joint $135,000 $165,000 $135,000 $165,000 Student loan interest deduction limit $2,500 $2,500 Phaseout of education savings bond interest exclusion $78,150 $93,150 MAGI** $79,700-$94,700 MAGI** Joint $117,250 $147,250 MAGI** $119,550-$149,550 MAGI** * ** MAGI = modified adjusted gross income *** The 5 year accelerated gift exclusion requires a timely filed Form 709 Gift (and Generation-Skipping Transfer) Tax Return. Please consult with your tax advisor to learn more. PLEASE READ THE IMPORTANT DISCLOSURES BELOW. E*TRADE Financial Corporation and its affiliates do not provide tax advice, and you always should consult your own tax advisor regarding your personal circumstances before taking any action that may have tax consequences. The tax information contained herein is provided for informational purposes only and pertains to federal rates. There is no guarantee regarding the accuracy or completeness of the information and it may be subject to change. E*TRADE disclaims any liability arising from the use of, or any reliance on, such information. The information is based on information provided by the Internal Revenue Service; please consult www.irs.gov for further information. Financial Consultants are dually registered with E*TRADE Securities LLC and E*TRADE Capital Management, LLC, and may offer services that are either one-time commission based or ongoing fee-based advisory services. 2018 E*TRADE Financial Corporation. All rights reserved. 1218-TAXREFG1-B65389 5