2021 Key Tax Facts
- Tax Foundation 2021 Tax Brackets
- Charitable - .14 per mile
- .14 for 01/01/2022 through 06/30/2022
- .14 for 07/01/2022 through 12/31/2022
- Medical/Moving - .16 per mile
- .18 for 01/01/2022 through 06/30/2022
- .22 for 07/01/2022 through 12/31/2022
- Business-related - .56 per mile
- .58.5 for 01/01/2022 through 06/30/2022
- .62.5 for 07/01/2022 through 12/31/2022
- Depreciation component - .26 per mile, .26 for 2022
2021 Income Limits & Phaseouts Begin
- Foreign Earned Income Exclusion: 108,700
- Itemized Deductions: (Does Not Apply)
- State & Local tax deduction limit: Single 5,000, MfJ 10,000
- Personal Exemption §151 : -0- (Does Not Apply)
- Standard Deduction §63 : Single 12,550, MfJ 25,100
- 24% Tax Bracket starts at: Single 86,375, MfJ 172,750
- 37% "Top Rate" starts at: Single 523,600, MfJ 628,300
- 15% Capital Gains start at: Single 40,400, MfJ 80,800
- 20% Capital Gains start at: Single 445,850, MfJ 501,600
- plus 3.8% Medicare surtax (NIIT) on lessor of Net Investment Income or MAGI Single > 200,000, MfJ > 250,000
- Tax on "§1250 gain" depreciation recapture: 25%
- Capital gains tax rate on collectibles: (gold, coins, art, antiques) & Qualified Small Business Stock §1202 : 28%
- Wage Limit for FICA Tax: 142,800
- Monthly transit and parking benefits: 270
2021 Child Related Income Phaseouts Begin
- Adoption Credit Income: 216,670
- Adoption credit amount: 14,440
- Child Tax Credit Income: Single 200,000, MfJ 400,000
- Kiddie Tax exemption §1(g)(4): 2,200*
- Unearned income up to 2,200 is taxed at the child’s rate and avoids Kiddie Tax. Income above 2,200 is subject to Kiddie Tax and taxed at the parent’s highest tax rate.
- EITC is Zero @ AGI:
- with 3+ children: Single 51,464, MfJ 57,414
- with 2 children: Single 47,915, MfJ 53,865
- with 1 child: Single 42,158, MfJ 48,108
- with no children: Single 15,980, MfJ 21,920
- EITC Investment Income limit: 3,650
- EITC max credit (Single or MFJ):
- with 3+ children: 6,728
- with 2 children: 5,980
- with 1 child: 3,618
- with no children: 543
- Child Tax Credit: 2,000 per child. (1,400 refundable) (per child under age 17; max refundable: 3 kids).
2021 Medical & Health Care Related Limits
- Flexible Spending Account Contributions: 2,750
- FSA unused carryover amount : 550
- HSA Plan Contributions: Single plan 3,600, Family plan 7,200, Age 55+ catch-up: 1,000
2021 Gift & Estate Limits
- Annual Exclusion: 15,000
- 529 Plan Gifts: 75,000
- Unified Gift & Estate (Lifetime) Exemption: Single 11,700,000, MfJ 23,400,000
- Gift & Estate tax rates: 40%
2021 Education Related Income Phaseouts Begin
- Lifetime Learning Credits: Single 59,000, MfJ 119,000
- American Opportunity Credit: Single 80,000, MfJ 160,000
- Savings Bond Interest exclusion for education: Single 83,200, MfJ 124,800
- American Opportunity Tax Credit (AOTC) (modified HOPE Credit) per Student (1st 4-years of college) (40% refundable: 1,000): 2,500
- Lifetime Learning Credit (20% of 1st $10K tuition) per family: 2,000
2021 Retirement Related Contribution & Income Phaseouts Begin
- Simple Plan contribution limit: 13,500, Age 50+ catch-up: 3,000
- 401-K, 403b, 457 & SAR-SEP contribution limit: 19,500, Age 50+ catch-up: 6,500
- Solo 401-K/SEP/Profit-Sharing total contribution (§415 ) limit: (profit sharing limited to 25% of comp): 58,000, Age 50+ catch-up: 6,500
- IRA & Roth contribution limit: 6,000, Age 50+ catch-up: 1,000
- Roth compensation: Single 125,000, MfJ 198,000
- Traditional IRA compensation, if covered by a plan: Single 66,000, MfJ 105,000, 198,000 (one spouse covered)
- Traditional IRA (non-deductible) compensation: No limit
2021 AMT Exemption Amount & Income Phaseouts Begin
- AMT Exemption: Single 73,600, MfJ 114,600
- AMT Exemption phaseout: Single 523,600, MfJ 1,047,200
- 28% AMT rate starts at AMTI: Single 99,950, MfJ 199,900
2021 Property exempt from levy §6334(a)(2):
- Furniture & Personal Effects: 9,790
- Tools/Books: 4,890
2021 Attorney fee award limitation (per hour) §7430(c)(1)(B)(iii): 210/hour*
2021 §179 Property:
- Maximum deduction year placed in service: 1,050,000
- Phase-out threshold (Total equipment purchased): 2,620,000
- TCJA allows 100% first-year "Bonus Depreciation" in Year-1 for qualifying assets placed in-service between September 28, 2017, and December 31, 2022.
- SUV, Pick-up or Van over 6,000 lbs GVW and under 14,000 lbs GVW - §179 limit: 26,200 + Bonus Depreciation
- Truck or Van over 14,000 lbs GVW - §179 limit: None
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