Almost everyone knows about the new tax reform law that takes effect for tax year 2018, but not many know about the new 2018 tax rates. How well do you know your new tax rate? Many taxpayers who don’t prepare their own taxes — and even many who do — don’t know their new tax rate or even their old one. Take this short quiz to test your tax knowledge and learn more about 2018’s tax reform and new tax rates. The answers are farther down the page, so no cheating!
- True or False: The lowest tax bracket for 2018 is the same as 2017: 10 percent.
- True or False: The highest tax bracket for 2018 is the same as 2017: 39.6 percent.
- True or False: For 2018, the personal exemption will increase.
- True or False: You have to be single to claim yourself as the Head of Household.
- True or False: You always get a bigger return if you’re married filing separately than if you file jointly with your spouse.
- True or False: Whether you’re filing as a single or married person depends on your legal marital status on the last day of the tax year.
- True or False: Itemizing your deductions will always save you money.
- True or False: The taxable income rates for each tax bracket change every year to adjust for inflation.
- FALSE: The highest tax bracket for 2018 is 37 percent.
- FALSE: Under the new tax law, the personal exemption will no longer be available, with the idea that other provisions of the law will offset this lack of tax relief.
- TRUE: You also must have a qualifying dependent.
- FALSE: There are a number of factors to consider when deciding whether to file jointly or separately. It’s best to consult with a tax consultant to determine which filing status would be most beneficial.
- FALSE: If the total amount for your itemized deductions falls below the standard deduction for your income bracket, you could actually end up with a higher tax burden. This will be especially important to check in 2018 because, with tax reform, the new standard deductions are almost double the 2017 amounts (for example, the standard deduction for individuals filing as single increased from $6,350 in 2017 to $12,000 in 2018).
0 to 2 correct: Good try! Read more of our blogs and try again!
3 to 4 correct: You did great! With just a little more studying, you could be a tax star!
5 to 6 correct: You’re almost there! Share your results and see if your friends can beat your score!
7 correct: Great job! Be sure to share your results with your friends.
8 correct: You’re a certified tax whiz! Now you can brag to your friends, and when someone asks “what is my tax rate?” you can proudly tell them!
For more helpful tax information, contact Liberty Tax® directly at 1-877-at-Liberty, or visit a conveniently located Liberty Tax® office near you. For real-time updates, follow Liberty Tax® on Facebook and Twitter.