It’s officially that time of year again. The IRS opened the 2019 tax-filing season on Monday and has begun accepting and processing federal tax returns for the 2018 tax year. More than 150 million individual tax returns for the 2018 tax year are expected to be filed, according to a press release by the IRS, with the vast majority of those coming before the April tax deadline. Through mid-day Monday, the IRS had already received several million tax returns during the busy opening hours.
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019 for most taxpayers.The IRS expects about 90 percent of returns to be filed electronically. E-file options for individuals and direct deposit — having the refund electronically deposited for free into your financial account — remain the fastest and safest way to file an accurate income tax return and receive a refund, according to the IRS. IRS issues more than 9 out of 10 refunds in less than 21 days. You can track your refund using our Where’s My Refund? tool.
As we prepare our 2018 income tax returns before the deadline, it’s important to know about the current tax rates and related numbers. The federal income tax has seven rates, organized below by filing status:
The amount of tax you owe depends on your income level and filing status. These rates are new and come from the Tax Jobs and Cuts Act of 2017 and are effective as of January 1, 2018. Overall, the tax rates have decreased for this filing season. The top rate has reduced from 39.6 percent to 37 percent. The bottom rate remains at 10 percent, but it now covers more income.
The IRS reminds taxpayers that moving into a higher tax bracket does not mean that all your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.
Questions or concerns? The IRS offers a comprehensive collection of resources here.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).