Tax Limitations: 2021
Retirement Plans | |
Salary deferrals into 401(k), 403(b), and 457 Plans | $19,500 |
Catch-up contribution (age 50+) | $6,500 |
Defined Contribution | $58,000 |
Defined Benefit | $230,000 |
IRA and Roth IRA | $6,000 |
Catch-up contribution (age 50+) | $1,000 |
IRA deduction phaseout for active participants: | |
Single | $66,000 - $76,000 |
Married Filing Jointly | $105,000 - $125,000 |
Spousal IRA | $198,000 - $208,000 |
Roth IRA phaseout: | |
Single | $125,000 - $140,000 |
Married Filing Jointly | $198,000 - $208,000 |
Estate and Gifting | |
Estate tax exclusion | $11,700,000 |
Gift tax annual exclusion | $15,000 |
Education | |
Coverdell Education Savings Account ($2,000 limit) phaseout: | |
Single | $95,000 - $110,000 |
Married Filing Jointly | $190,000 - $220,000 |
Lifetime Learning Credit (20% of qualified expenses up to $10,000) phaseout: | |
Single | $80,000 - $90,000 |
Married Filing Jointly | $160,000 - $180,000 |
American Opportunity Tax Credit (100% up to $2k of qualified expenses, 25% on next $2k) phaseout: | |
Single | $80,000 - $90,000 |
Married Filing Jointly | $160,000 - $180,000 |
Student loan interest deduction ($2,500) phase out | |
Single | $70,000 - $85,000 |
Married Filing Jointly | $140,000 - $170,000 |
Deductions | |
Personal Exemption | $0, suspended for 2018 - 2025 |
Standard Deduction: | |
Single | $12,550 |
Married Filing Jointly | $25,100 |
Married Filing Separately | $12,550 |
Head of Household | $18,750 |
Standard Mileage Use Rates: | |
Business | $0.56 per mile |
Charitable | $0.14 per mile |
Medical or Moving | $0.16 per mile |
Social Security & Medicare | ||||||||||||||||||||||
Social Security tax rate (employee) | 6.20% | |||||||||||||||||||||
Social Security tax rate (self-employed) | 12.40% | |||||||||||||||||||||
Social Security taxable wage base | $142,800 | |||||||||||||||||||||
Retirement earnings exempt amount* | $18,960/year | |||||||||||||||||||||
* $1 in social security benefits will be withheld for every $2 in earning above this amount | ||||||||||||||||||||||
Medicare tax rate (employee) | 1.45% | |||||||||||||||||||||
Medicare tax rate (self-employed) | 2.90% | |||||||||||||||||||||
Medicare taxable wage base | Unlimited | |||||||||||||||||||||
Medicare Part B: | ||||||||||||||||||||||
Deductible | $203 | |||||||||||||||||||||
Coinsurance | 20% | |||||||||||||||||||||
Monthly premium:
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