2021 Federal Tax Rate Schedules
| Single Taxable Income | ||
|---|---|---|
|
$ |
|
$ |
|
0 to 9,950 |
× 10.0% minus |
0.00 = Tax |
|
9,951 to 40,525 |
× 12.0% minus |
199.00 = Tax |
|
40,526 to 86,375 |
× 22.0% minus |
4,251.50 = Tax |
|
86,376 to 164,925 |
× 24.0% minus |
5,979.00 = Tax |
|
164,926 to 209,425 |
× 32.0% minus |
19,173.00 = Tax |
|
209,426 to 523,600 |
× 35.0% minus |
25,455.75 = Tax |
|
523,601 and over |
× 37.0% minus |
35,927.75 = Tax |
| MFJ or QW Taxable Income | ||
|---|---|---|
|
$ |
|
$ |
|
0 to 19,900 |
× 10.0% minus |
0.00 = Tax |
|
19,901 to 81,050 |
× 12.0% minus |
398.00 = Tax |
|
81,051 to 172,750 |
× 22.0% minus |
8,503.00 = Tax |
|
172,751 to 329,850 |
× 24.0% minus |
11,958.00 = Tax |
|
329,851 to 418,850 |
× 32.0% minus |
38,346.00 = Tax |
|
418,851 to 628,300 |
× 35.0% minus |
50,911.50 = Tax |
|
628,301 and over |
× 37.0% minus |
63,477.50= Tax |
| MFS Taxable Income | ||
|---|---|---|
|
$ |
|
$ |
|
0 to 9,950 |
× 10.0% minus |
0.00 = Tax |
|
9,951 to 40,525 |
× 12.0% minus |
199.00 = Tax |
|
40,526 to 86,375 |
× 22.0% minus |
4,251.50 = Tax |
|
86,376 to 164,925 |
× 24.0% minus |
5,979.00 = Tax |
|
164,926 to 209,425 |
× 32.0% minus |
19,173.00 = Tax |
|
209,426 to 314,150 |
× 35.0% minus |
25,455.75 = Tax |
|
314,151 and over |
× 37.0% minus |
31,738.75 = Tax |
| HOH Taxable Income | ||
|---|---|---|
|
$ |
|
$ |
|
0 to 14,200 |
× 10.0% minus |
0.00 = Tax |
|
14,201 to 54,200 |
× 12.0% minus |
284.00 = Tax |
|
54,201 to 86,350 |
× 22.0% minus |
5,704.00 = Tax |
|
86,351 to 164,900 |
× 24.0% minus |
7,431.00 = Tax |
|
164,901 to 209,400 |
× 32.0% minus |
20,623.00= Tax |
|
209,401 to 523,600 |
× 35.0% minus |
26,905.00 = Tax |
|
523,601 and over |
× 37.0% minus |
37,377.00 = Tax |
Additional Medicare Tax
0.9% additional tax on wage income above threshold
|
Filing status |
Single, HOH, QW |
MFJ |
MFS |
|
Threshold amount |
$200,000 |
$250,000 |
$125,000 |
2021 Qualifying Relative Limit
The qualifying relative income limit is $4,300.
2021 Standard Deduction
| The basic standard deduction for 2021 is: | |
|---|---|
|
Single or MFS |
$ 12,550 |
|
MFJ or QW |
$ 25,100 |
|
HOH |
$ 18,800 |
Age 65 and/or blind. The additional amounts for age 65 or older and/or blind, per person, per event in 2021 are:
|
MFJ, QW, or MFS |
$ 1,350 |
|
Single or HOH |
$ 1,700 |
Dependent. The standard deduction in 2021 for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100, or earned income plus $350.
Child Tax Credit and Credit for Other Dependents
|
Increased Child Tax Credit |
• $3,600 per qualifying child under age 6. • $3,000 per qualifying child age 6–17. |
|
Increased Child Tax Credit
phaseout begins |
MFJ, QW………………………………….$150,000 HOH………………………………………..$112,500 Single, MFS………………………………. $75,000 |
|
Child Tax Credit |
$2,000 per qualifying child. |
|
$2,000 Child Tax Credit
phaseout begins |
MFJ………………………………………. $ 400,000 Single, HOH, MFS…………………….. $ 200,000 |
|
Credit for Other Dependents |
$500 per dependent (not a qualifying child). |
Social Security Highlights
| Employee’s portion of FICA | 2021 | 2020 | 2019 |
|---|---|---|---|
|
Maximum earnings subject to Social
Security tax (Medicare no limit) |
$ 142,800 |
$ 137,700 |
$ 132,900 |
|
Social Security tax rate |
6.20% |
6.20% |
6.20% |
|
Medicare tax rate* |
1.45% |
1.45% |
1.45% |
|
Maximum Social Security tax |
$ 8,853.60 |
$ 8,537.40 |
$ 8,239.80 |
*Plus 0.9% on wages above threshold amount, plus 3.8% on unearned income above threshold amount.
Business Expenses
2021 Standard Mileage Rate Per Mile
|
Business |
56.0¢ |
|
Medical and moving* |
16.0¢ |
|
Charitable |
14.0¢ |
|
Depreciation |
26.0¢ |
2021 Standard Deduction for Meals— High Low Method (Per Day)
|
High cost localities |
$ 71 |
|
All other localities |
$ 60 |
|
Transportation workers |
$ 66 |
Section 179 Expense Limits
|
Regular 179 limits |
$ 1,050,000 |
|
SUV limits |
$ 26,200 |
|
Investment phaseout
begins. |
$ 2,620,000 |
Qualified Transportation Benefits (exclusion from income allowed, but no employer deduction)
|
Commuter benefits (per month) |
$ 270 |
|
Parking benefits (per month) |
$ 270 |
*The moving expense deduction is available only to active duty military servicemembers pursuant to a permanent change of station (PCS) order.
2021 Retirement Plan Limits
401(k)/403(b) Deferral Limits
|
Under age 50 |
$ 19,500 |
|
Age 50 and over |
$ 26,000 |
Roth IRA Phaseout Range
|
MFJ |
$ 198,000–$ 208,000 |
|
Single, HOH |
$ 125,000–$ 140,000 |
|
MFS |
$ 0– $ 10,000
|
IRA Contribution Limits
|
Under age 50 |
$ 6,000 |
|
Age 50 and over |
$ 7,000 |
SIMPLE Deferral Limits
|
Under age 50 |
$ 13,500 |
|
Age 50 and over |
$ 16,500 |
IRA Deduction Phaseout Range if Covered by Employer Plan
|
MFJ |
$ 105,000–$ 125,000 |
|
Single, HOH |
$ 66,000–$ 76,000 |
|
MFS |
$ 0–$ 10,000 |
|
Spouse not covered |
$ 198,000–$ 208,000 |
Qualified Retirement Plans
|
Profit sharing/SEP limits . |
25%/$58,000 |
|
Defined benefit plan limits |
$230,000 |
|
Compensation limits |
$290,000 |
Education Tax Benefits
American Opportunity Credit
|
MFJ phaseout |
$160,000–$180,000 |
|
Single, HOH phaseout |
$80,000–$90,000 |
|
Maximum credit |
$2,500 per student Up to 40% ($1,000) may be refundable |
Education Savings Account (ESA)
|
MFJ phaseout |
$190,000–$220,000 |
|
All others |
$95,000–$110,000 |
|
Annual contribution limit: |
$2,000 per beneficiary |
Lifetime Learning Credit
|
MFJ phaseout |
$160,000–$180,000 |
|
Single, HOH phaseout |
$80,000–$90,000 |
|
Maximum credit |
$2,000 per return |
Student Loan Interest Deduction
|
MFJ phaseout |
$140,000–$170,000 |
|
Single, HOH phaseout |
$70,000–$85,000 |
|
Maximum deduction: |
$2,500 per return |
U.S. Savings Bonds Interest Exclusion
|
MFJ phaseout |
$124,800–$154,800 |
|
Single, HOH phaseout |
$83,200–$98,200 |
Qualified Tuition Plans (529 plans)
- Distributions for qualifying expenses for college students or apprentices are not taxable.
- Distributions up to $10,000 per student are allowed for tuition expenses for a public, private, or religious elementary or secondary school.
- Cumulative distributions up to $10,000 per beneficiary and sibling for qualified education debt.
2021 Tax Rates: Capital Gain and Dividend Income
| If income is… | Maximum tax rate % | If asset is held… |
|---|---|---|
|
Gain from the sale of collectibles |
28% |
More than 1 year |
|
Taxable portion of gain on qualified small business stock (section 1202 exclusion) |
28% |
More than 5 years |
|
Unrecaptured section 1250 gain |
25% |
More than 1 year |
|
Long-term capital gain |
See below |
More than 1 year |
|
Qualified dividend income |
See below |
More than 60 days |
|
Taxable Income Single ……………………………. $0 to $40,400 MFJ/QW ………………………… $0 to $80,800 MFS………………………………. $0 to $40,400 HOH………………………………. $0 to $54,100 Estates and trusts……………… $0 to $2,700 |
0% |
|
|
Taxable Income Single …………………….$40,401 to $445,850 MFJ/QW …………………$80,801 to $501,600 MFS……………………….$40,401 to $250,800 HOH……………………….$54,101 to $473,750 Estates and Trusts……………………… $2,701 to $13,250 |
15% |
|
|
Taxable Income Single …………………….. $445,851 and over MFJ/QW …………………. $501,601 and over MFS……………………….. $250,801 and over HOH……………………….. $473,751 and over Estates and Trusts ………. $13,251 and over |
20% |
|
|
Short-term capital gain |
37% |
1 year or less |
|
Ordinary dividend income |
37% |
60 days or less
|
Net Investment Income Tax (NIIT)
3.8% additional tax on investment income if MAGI above threshold amount
|
Filing status |
Single, HOH |
MFJ, QW |
MFS |
|
Threshold amount |
$200,000 |
$250,000 |
$125,000 |
2021 Qualified Business Income Deduction Thresholds
|
MFJ: $329,800 |
MFS: $164,925 |
Single, HOH, QW: $164,900 |
