2018 US Tax Year End Planning

As 2018 draws to a close, we look at some of this year's key US tax changes, as well as some important year-end planning points you need to know about. 

Last updated: 2 November 2018

The US tax year ends on 31 December 2018. So, now is a good time to consider whether there is anything that you can do to minimise your US tax exposure for 2018 and to also begin preparing for 2019.

This year has seen some significant tax changes, as part of the “Tax Cuts and Jobs Act”. Owing to this change, we expect to see further guidance and clarifications of the new tax rules to be published, as well as the additional forms that would also be required for filing 2018 US tax returns and related schedules.

Any tax planning opportunities should always include the US and UK tax implications for an American living in the UK, and any decisions taken in relation to buying or selling/gifting of assets should take into account both the investment, as well as the tax consequences of doing so.

Ordinary Income Tax rates

For 2018 and 2019, the top federal tax rates are unchanged from the previous year, with a top rate of 37%. This rate applies to individuals with adjusted gross income (AGI) in excess of:

Filing Status    


2019 (projected)

Married Filing Jointly (MFJ)



Head of Household (HoH)                                                  






Married Filing Separately (MFS)                              




So what opportunities could you take advantage of in the run-up to the end of 2018? Below, we have put together a checklist of a few things you might want to consider.  

Year End Tax Planning Checklist

Click on the links below for more information.

  1. If you are a US owner of a non-US corporation such as a UK Ltd company, are you aware of how the 2018 US tax reform affects you? 

  2. Have you considered realising income in 2018 to fully utilise lower tax rates, or spreading income into 2019 if you are already in the top rates of tax? 

  3. Have you thought about making gifts in 2018, to fully utilise your annual exemptions?

  4. Are you getting the most out of your pension? Can you restructure your US IRA/401(k)?

  5. Are you considering re-mortgaging your UK property and have you thought about the US tax consequences?

  6. Have you thought about prepaying UK tax before 31 December 2018, or deferring until January 2019?

  7. Do you know when the next key deadlines are?

We recommend that individuals seek professional advice where appropriate before taking any action, so please fill out the form below if you have any questions. 

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