2020/2021 - TAX FACTS

2021 Social Security: 

Maximum Taxable Wages                                     $142,800

Medicare: 

Maximum Taxable Salary:                                    Unlimited

Do I need to file this year?  (Click here for the filing requirements)

https://www.irs.gov/uac/do-i-need-to-file-a-tax-return

Want some help with determining the proper number of exemptions to claim on your W-4 for wage withholding? 

(click the link for the IRS’s withholding calculator or call our office for assistance)

https://www.irs.gov/individuals/irs-withholding-calculator

Prior-year Safe Harbor for estimated taxes           110% of prior year tax

of higher-income:                                              

Standard mileage rate for business driving           2020 = 57.5 & 2021 = 56.0 cents / mile

Unearned income maximum for children              $2,200 (threshold, then sliding scale tax rate)

(Kiddie Tax applies 19 years and younger)          

Maximum capital gains tax rate for taxpayers       0% 

in the 10% - 15% bracket

Maximum capital gains tax rate for taxpayers       15-20% 

above the 15% bracket                                      (high income taxpayers)

Capital gains tax rate on collectibles                    28%

2020 Traditional / Roth IRA Contribution limit       $6,000 or

                                                                        $7,000 (age 50+)

Maximum employee contribution to                     SIMPLE IRA 2020 $13,500

                                                                       ($16,500 age 50 or older)

Maximum employee contribution to SEP IRA        25% of compensation

                                                                        up to $57,000 (2020)

401(k) Maximum employee contribtuion limit       $19,500 under 50

(2020)                                                              $26,000 above 50 

Self-employed health insurance deduction            100%

Federal Estate Tax                                              40% on Estate's excess

                                                                        value of $11.4 million ($22.8M married)

Annual Exclusion for Gifts                                   $15,000 per receipient

                                                                        (per year)

IRC Section 121 Capital Gains exclusion on          up to $500,000 for married couples

of primary residence if house was lived in 24       ($250,000 single)

of the 60 months preceding sale date