Federal Income Tax Rates Maximum individual income tax rate IRC 1(j)(2) 37% 37% Maximum corporate income tax rate 21% 21%

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Tax Quick Reference

Federal Income Tax Rates

2021

2020

Maximum individual income tax rate IRC 1(j)(2) 37% 37%

Individual tax rates (seven brackets) IRC 1(j)(2) 10%, 12%, 22%, 24%

32%, 35%, 37%

10%, 12%, 22%, 24% 32%, 35%, 37% Taxable income beyond which top rate begins

Married filing jointly and surviving spouse Single

Head of household Married filing separately

$628,300 $523,600 $523,600 $314,150 $622,050 $518,400 $518,400 $311,025

Maximum rate for qualified capital gains and dividends IRC 1(h)(1)(D) 1 20% 20%

Maximum corporate income tax rate 21% 21%

Standard Deduction

Married filing jointly and surviving spouse $25,100 $24,800

Single and married filing separately $12,550 $12,400

Head of household $18,800 $18,650

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Alternative Minimum Tax (AMT) Exemption Amounts

2021

2020

Exemption, married filing jointly and surviving spouse

Phase-out begins $114,600 $1,047,200 $113,400 $1,036,800 Exemption, single Phase-out begins $73,600 $523,600 $72,900 $518,400 Exemption, married filing separately

Phase-out begins

Exemption, estates and trusts Phase-out begins $57,300 $523,600 $25,700 $85,650 $56,700 $518,400 $25,400 $84,800

Health Savings Account Contribution Limits

Individual Plan Family Plan 55+ Additional $3,600 $7,200 $1,000 $3,550 $7,100 $1,000

Deductions

Deduction for pass-through entities 2

Percentage of qualified business income

Limit: 50% W-2 wages, or 25% wages + 2.5% of property’s unadjusted basis

20% 20%

Deduction for state and local taxes Sales or state income taxes Deduction for property taxes

$10,000 total $10,000 total

Deduction for medical expenses >10% of AGI >10% of AGI

Maximum cash donations to public charities (income-based limit) 60% 60%

Maximum mortgage debt for mortgage interest deduction 3 $750,000 $750,000

Maximum nontaxable IRA distributions to charities, if at least age 70 ½ $100,000 $100,000

Maximum deduction for teacher classroom expenses $250 $250

Maximum American Opportunity education credit $2,500 $2,500

Driving deductions, per mile 4

Business mileage Charitable mileage

Medical and moving mileage

Pending 14¢ Pending 57.5¢ 14¢ 17¢

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Business Equipment

2021

2020

Maximum Section 179 expense deduction $1,050,000 $1,040,000

Phase-out for Section 179, based on asset additions $2,620,000 $2,590,000

Bonus first-year depreciation 6 100% 100%

Qualified Transportation Fringe Benefit Exclusion

7

Commuter highway vehicle and transit pass, per month $270 $270

Qualified parking, per month $270 $270

Domestic Employees

Annual threshold when a domestic employer is liable to withhold and pay FICA for babysitters, housekeepers, etc.

$2,300 $2,200

Kiddie Tax

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Net unearned income not subject to kiddie tax $2,200 $2,200

Earned income tax rate Single individual Single individual

Net unearned income tax rate Parents Trust and estate

Exclusions and Credits

Exclusion of gain on qualified small business stock (QSBS) 100% 100%

Exclusion of foreign income $108,700 $107,600

Child tax credit, per child $2,000 with

$1,400 refundable

$2,000 with $1,400 refundable

Adoption credit, maximum expenses $14,440 $14,300

Federal Estate and Gift Tax

Maximum tax rate 40% 40%

Estate/gift exemption amount (double for married couple) $11.7 million $11.58 million

Annual gifting limit, per recipient (double for married couple) $15,000 $15,000

Miscellaneous

Additional Medicare tax for highly compensated employees (on income >$250,000

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Social Security and Medicare

2021

2020

Social Security taxable wage base $142,800 $137,700

Social Security tax Employee Self-employed 6.2% 12.4% 6.2% 12.4%

Medicare taxable wage base No limit No limit

Medicare tax Employee Self-employed 1.45% 2.9% 1.45% 2.9%

Medicare surtax on net investment income 3.8% 3.8%

Individual Retirement Accounts

Individual IRA, up to 100% of earned income (combined limit for traditional and/or Roth)

$6,000 $6,000

Additional annual catch-up contributions for account owners, age 50 and older (Roth and traditional IRA)

$1,000 $1,000

Annual Qualified Plan Limits

Maximum compensation used to determine contributions $290,000 $285,000

Deferral limits for plans §401(k) and §403(b) SIMPLE §457 $19,500 $13,500 $19,500 $19,500 $13,500 $19,500 Additional catch-up contributions for employees, age 50 and older

§401(k) and §403(b) SIMPLE §457 $6,500 $3,000 $6,500 $6,500 $3,000 $6,500

Highly Compensated Employee threshold $130,000 $130,000

Compensation defining Key Employee in top-heavy plan $185,000 $185,000

Compensation triggering Simplified Employee Pension (SEP) contribution requirement

$650 $600

Maximum annual addition for Defined Contribution Plan $58,000 $57,000

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Disclaimer:

This document is intended as a general reference only as the subject matter is complex and highly technical. Specific provisions may be more detailed and complex than described here — with various limitations, thresholds, phase-ins, phase-outs and other exceptions. The content may be impacted by subsequent regulatory and legislative actions taken after the date published. As a result, it is not intended as a substitute for

personalized professional advice. Contact your tax advisor to discuss how this information applies to your personal tax situation.

1 Three-year holding period required for carried interest preference.

2 It’s a complex calculation, subject to various limitations, phase-ins, thresholds and exclusions. The deduction is not applicable to most professional service businesses, except for those individuals with taxable income under specified thresholds.

3 Applies to mortgage debt incurred after December 15, 2017, excluding refinancing of original debt.

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Under the Act, the miscellaneous itemized deduction for unreimbursed employee business expenses (including mileage) is not available from 2018

through 2025.

5 Alimony was no longer deductible beginning in 2019.Similarly, the spouse/recipient will not include alimony in income. The change applies to divorce or separation agreements executed or amended after December 31, 2018. Earlier agreements with payments made in 2019 are not affected.

6 Applies to property acquired and placed in service after September 27, 2017. 7 Excluded from employee income, but no longer deductible by the employer. 8 Kiddie tax changes implemented in the Tax Cuts and Jobs Act have been repealed.

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