The tax brackets were adjusted as follows.
For most individuals, the revised brackets indicate a reduction in tax rates. Managing the timing of income and deductions to maintain a lower marginal tax bracket for every incremental dollar earned continues to be the opportunity. This might include paying expenses before year-end or deferring income until 2019.
Beyond managing the timing on a year-to-year basis, it’s important to understand that these new tax brackets are scheduled to sunset at the end of 2025. Most taxpayers will be incentivized to accelerate income before tax rates increase in 2026, pending any potential changes in tax legislation before that time.