2021 federal income tax brackets
Single
| Taxable Income | Tax owed |
|---|---|
| $0 - $9,950 | 10% of taxable income |
| $9,951 to $40,525 | $995 plus 12% of the amount over $9,950 |
| $40,526 to $86,375 | $4,664plus 22% of the amount over $40,525 |
| $86,376 to $164,925 | $14,751plus 24% of the amount over $86,375 |
| $164,926 to $209,425 | $33,603plus 32% of the amount over $164,925 |
| $209,426 to $523,200 | $47,843plus 35% of the amount over $209,425 |
| $523,601 or more | $157,804.25plus 37% of the amount over $523,600 |
Married Filing Jointly
| Taxable Income | Tax owed |
|---|---|
| $0 to $19,900 | 10% of taxable income |
| $19,901 to $81,050 | $19,901 plus 12% of the amount over $19,900 |
| $81,051 to $172,750 | $9,328plus 22% of the amount over $81,050 |
| $172,751 to $329,850 | $29,502 plus 24% of the amount over $172,750 |
| $329,851 to $418,850 | $67,206plus 32% of the amount over $329,850 |
| $418,851 to $628,300 | $95,686 plus 35% of the amount over $418,850 |
| $628,301 or more | $168,993.50plus 37% of the amount over $628,300 |
Married Filing Separately
| Taxable Income | Tax owed | $0 to $9,950 | 10% of taxable income |
|---|---|
| $9,951 to $40,525 | 995plus 12% of the amount over $9950 |
| $40,526 to $86,375 | $4,664plus 22% of the amount over $40,525 |
| $86,376 to $164,925 | $14,751plus 24% of the amount over $86,375 |
| $64,926 to $209,425 | $33,603 plus 32% of the amount over $164,925 |
| $209,426 to $314,150 | $47,843 plus 35% of the amount over $209,425 |
| $314,151 or more | $84,496.75plus 37% of the amount over $314,150 |
Head of Household
| Taxable Income | Tax owed | $0 to $14,200 | 10% of taxable income |
|---|---|
| $14,201 to $54,200 | $1,420plus 12% of the amount over $14,200 |
| $54,201 to $86,350 | $6,220 plus 22% of the amount over $54,200 |
| $86,351 to $164,900 | $13,293plus 24% of the amount over $86,350 |
| $164,901 to $209,400 | $32,145 plus 32% of the amount over $164,900 |
| $209,401 to $523,600 | $46,385 plus 35% of the amount over $209,400 |
| $523,601 or more | $156,355plus 37% of the amount over $523,600 |
2021 Capital Gain and Qualified dividends Tax Rates
| Rate | Single Filer | Married Filing Jointly | Head of Household | Married Filing Separately |
| 0% | $0-$40,400 | $0-$80,800 | $0-$53,600 | $0-$40,000 |
| 15% | $40,401 to $445,850 | $80,801 to $501,600 | $54,101 to $473,750 | $40,401 to $250,800 |
| 20% | Over $445,850 | Over $501,600 | Over $473,750 | Over $250,800 |
* Additional 3.8% tax imposed on the lesser of the individual's Net investment Income or the excess of the individual's MAGI over certain thresholds ($250,000 for married couples filing jointly or surviving spouse, $125,000 for married couples filing separately, and $200,000 for all other individual taxpayers.) **The taxable part of a gain from selling setion 1020 and gain from selling collectiblers(coins or art) is taxed at maximum 28%. ***The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate. ****Short-term capital gains are taxed at the same rate as ordinary income.
2018 AMT Rates for Individuals
| Taxpayer | AMT Taxable Income Threshold | 2016 AMT Rate |
|---|---|---|
| Single, Married Filing Joint, Head of Household | $0-$191,500 | 26% |
| $191,500 or more | 28% | |
| Married Filing Separately | $0-$95,750 | 26% |
| $95,750 or more | 28% |
2018 AMT Exemption
| Taxpayer | 2018 AMT Exemption |
|---|---|
| Single,Head of Household | $70,300 |
| Married Filing Joint | $109,400 |
| Married Filing Separately | $54,700 |
2018 Maximum Social Security Benefit Subject to FICA
| Maximum Amount | FICA Tax Rate | |
|---|---|---|
| OASDI Maximum | $128,400 | 12.4% Social Security tax for Self-employed |
| 6.2% employees | ||
| High Income Maximum * | No Limit | 2.9% Medicare Tax for Self-employed |
| 1.45% Medicare Tax for employees |
* Additional 0.9% tax imposed on employment wages for certain higher-income taxpayer (income of more than $250,000 for married couples filing jointly or surviving spouse, $125,000 for married couples filing separately, and $200,000 for all other individual taxpayers)
Modified Adjusted Gross Income Amount for Social Security Benefits to Be Taxable
| Taxpayer | Up to 50% of Benefit Taxable if provisional income exceeds | Up to 85% of Benefit Taxable if provisional income exceeds |
|---|---|---|
| Married Filing Jointly | $32,000 | $44,000 |
| Married Filing separately | $0 | $0 |
| Single and Head of Household | $25,000 | $34,000 |
2018 Standard Mileage Rates
| Purpose | Rate |
|---|---|
| Business | 54.5C per mile |
| Medical | 18C per mile |
| charitable | 14C per mile |
| Moving | 18C per mile |
2018 Education Incentives
| Above the Line Tuition Deduction | Up to $4,000 | Qualified tuition and related expenses | |
| Above the Line Student loan Interest Deduction | Up to $2,500 | Subject to income limitations | |
| Education Credits | American Opportunity Credit | Up to $2,500 | For first four years of higher education expenses paid |
| Lifetime Learning Credit | 20% of tuition paid, up to $2,000 per return | ||
| Both are subject to income limitations, | |||
| Cannot be used in conjunction with each other for the same student | |||
| Section 529 Plans-distributions used for qualified higher education expenses are income tax free. | |||
| subject to income limitations. | |||
2018 Standard Deductions
| Standard Deductions | Annual | Additional Amount for Age 65 or older or Blind |
|---|---|---|
| Married Filing Jointly/ Surviving Spouse | $24,000 | $1,300 |
| Married Filing Separately | $12,000 | $1,300 |
| Head of Household | $18,000 | $1,600 |
| Single | $12,000 | $1,600 |
2018 Phaseout of Itemized Deductions
| Married Filing Jointly/ Surviving Spouse | none |
| Married Filing Separately | none |
| Head of Household | none |
| Single | none |
2018 Personal Exemptions
| NONE | ||
|---|---|---|
2018 Sec. 179 Expenses Allowance
| Dollar Limitation | $1000,000 |
| Investment Limitation | $2500,000 |
2018 Estate and Gift Taxes
| Annual Gift Tax Exclusion-non spouse | $15,000 |
| Annual Gift Tax Exclusion for non-citizen Spouses | $152,000 |
| Estate Tax Exclusion | $5,600,000 |
| Who die in 2018, Gift Tax Exclusion | $5,600,000 |
| Who die in 2018, Gift Tax Exemption | $5,600,000 |
| Foreign Gift not report to Form 3520 | $100,000 |
2018 Child Tax Credit and Exclusions
| Maximum child Tax Credit | $2,000 |
| Phase out $440,000 (married filing jointly), | |
| $240,000(other filing status). refundable up to $1400 |
2018 Foreign Earned Income Exclusion
| Foreign Earned Income Exclusion | $104,100 |
Traditional IRAs Contribution
| Regular | Catch-up (for age at least 50 by the end of the year) | |
|---|---|---|
| Contribution limits | $5,500 | $1,000 |
2018 Roth IRAs phaseout
| Taxpayer | MAGI phaseout Range |
|---|---|
| Married Filing Jointly/ Surviving Spouse | $189,000-199,000 |
| Single, Head of Household | $120,000-135,000 |
| Married Filing Separately | $0-10,000 |
2017 Qualified Plans
| Maximum elective deferral to retirement plans (e.g., 401(k), 403(b)) | $18,500 |
| Maximum elective deferral to SIMPLE IRA plans | $12,500 |
| Catch up contribution to SIMPLE plans | $3,000 |
| Maximum elective deferral to 457 plans or exempt employers | $18,500 |
| Limit on annual additions to Keogh plans and SEP-IRAs | $55,000 |
| Limit on annual additions to defined contribution plans | $55,000 |
| Maximum annual compensation taken into account for contributions | $275,000 |
| Annual benefit limit under defined benefit plans | $220,000 |
| Threshold amount of definition of highly compensated employee | $120,000 |
| Threshold amount of definition of highly compensated employees | $175,000 |
| Catch-up contribution Limits (individual who will be at least age 50 by the end of the year): | |
| 401(k), 403(b), SARSEP and 457 plans | 6,000 |
Individual Estimated Taxes
| Individuals can base federal estimated tax payments on: | |||
| 1) 90% of current tax | |||
| 2) 100% of prior year's tax, or | |||
| 3) 110% of prior year's tax if prior year's AGI is :>$150,000 (>$75,000 for married Filing Separately) | |||
| . Annualization exception | |||
| . No penalty if tax <$1,000 or no tax liabilities in preceding tax year. | |||
