| Maximum Salary Deferrals: | $19,500 for 401(k), 403(b), 501(c), 457 plans; / $13,500 for SIMPLE 'catch-up'contribution limits for age 50+: (additional $6,500 / $3,000 for SIMPLE) $2,750 for Health FSA |
| Self-Employed: | SEP-IRA: $58,000, with limitation of 20% adjusted net s/e income |
| Traditional IRA Contributions Limit: | $6,000 (up to amount of earned income for the year)
additional catch-up $1,000 for age 50+ |
Traditional IRA Deduction MAGI Phaseout: (when also eligible to contribute to a retirement plan at work) |
MFJ, QW: $105,000-$125,000 S, HH: $66,000-$76,000 MFS: 0-$10,000 (living apart all year, see S) MFJ taxpayer when only other spouse covered by a plan: $198,000-$208,000 |
Roth IRA Contributions MAGI Phaseout: |
MFJ: $198,000-$208,000 S, HH: $125,000-$140,000 MFS: 0-$10,000 (living apart all year, see S) |
Retirement Savings Credit ('Saver's Credit') Maximum AGI Limit: |
MFJ: $66,000 HH: $49,500 S, QW, MFS: $33,000 |
| Social Security: |
Before retirement age, can earn up to $18,960 without repaying benefits. Benefits reduced $1 for each $2 earned over limit Preceding months in year of reaching retirement age: $50,520. Benefits reduced $1 for each $3 earned over limit On/after retirement month, no limit. Maximum monthly benefits for 2021: $3,895 Earnings subject to SS tax: Employee: $142,800 (maximum $8,854 w/h) Household help: cash wages over $2,300 |
| Health Savings Account: | Maximum HSA contribution $3,600 individual coverage / $7,200 family coverage.
additional catch-up $1,000 for age 55+ |
| Child Tax Credit: | increases to $3,600 per child under 6, $3,000 age 6 through 17, with phaseout starting at a higher AGI level of 400K MFJ, 200K others. $500 credit for other dependents. (TCJA and American Rescue Plan) |
| Child Care Expenses/Credit: | Allowed expenses for credit increases from 3K one child (6K two or more) to 8K/16K. Dependent care benefits set-aside increases from $5K to $10.5K. Maximum credit $4K /$8K (one child / two or more children) (American Rescue Plan, 2021 only) |
| Educational Credit: (MFS ineligible) | American Opportunity Credit (aka Hope Credit): 100% of first $2,000, 25% of next $2,000 tuition (all 4 years college) MAGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ) Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+) MAGI phaseout: $59,000-$69,000 (individual); $118,000-$138,000 (MFJ) |
| Student Loan Interest: (MFS ineligible) | Up to $2,500 MAGI phaseout: $70,000-$85,000 (individual); $140,000-$170,000 (MFJ) same as 2019. |
Earned Income Credit: (MFS ineligible) |
Maximum Earned income/MAGI limit: $21,430 (no children), $42,158 (one child), $47,915 (two children), $51,464 (three children) limits increased by $5,950 if MFJ Maximum credit will range from $1,502 for no children up to $6,728 for three or more children. (disqualified if investment income over $10,000, any filing status) (American Rescue Plan): May calculated using 2019 earned income if it was higher than 2021 for more credit. EIC for taxpayer/no children temporarily increased for 2021, w/no upper age limit. |
| Adoption Credit: | Up to $14,400 (phaseout $216,660-$256,660) |
| 'Kiddie Tax': | Child under 18/full-time student under 24, with interest/dividends over $2,200
'Secure Act' reversed TCJA which changed tax rates from parents' marginal rate from trust/estate tax brackets. |
| Standard Mileage Rates: |
Business: 56¢ (Depreciation adjustment: 26¢) Charity: 14¢ Medical: 16¢ Employee business expenses and nonmilitary moving expenses were eliminated (TCJA). |
| Itemized Deduction phaseout: | This has been eliminated. And with no personal exemptions, that phaseout also eliminated. (TCJA). |
| Section 179 Expense: | total limit for tangible personal property placed in service: $1,050,000 phaseout starts at $2.62M placed in service |
| Depreciation Limit (with/without bonus depreciation): | Passenger auto limit, first year business: $10,200 / $18,200
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| Capital Gain Tax: | Long-term (holding over a year): 0% for taxable income under $40.4K (S,MFS), $54.1K (HH), $80.8K (MFJ, QW) 15% for taxable income under $445,850 (S), $473,450 (HH), $501,600 (MFJ, QW) or $250,800 (MFS) 20% for taxable income over those amounts. |
| Gift Tax Exclusion/ Estate Exclusion: | $15,000 / $11.7 M |
| Foreign Income Exclusion: | $107,600 |
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