As we begin this new year, please keep in mind the various IRS annual limits and any changes to the limits from the previous year. Below we have outlined some of the more common limits for the 2021 tax year.
| 2021 | 2020 | |||
| Standard Deduction | ||||
| Married Filing Joint | 25,100 | 24,800 | ||
| Single or Married Filing Single | 12,550 | 12,400 | ||
| Head of Household | 18,800 | 18,650 | ||
| Standard Mileage Rates | ||||
| Business | 0.56 | 0.575 | ||
| Medical | 0.16 | 0.17 | ||
| Charitable | 0.14 | 0.14 | ||
| 401(k)/403(b) Deferral Limits | ||||
| Under Age 50 | 19,500 | 19,500 | ||
| Age 50 and Over | 26,000 | 26,000 | ||
| Traditional IRA Contribution Limits | ||||
| Under Age 50 | 6,000 | 6,000 | ||
| Age 50 and Over | 7,000 | 7,000 | ||
| SEP IRA Contribution Limits | ||||
| Maximum Contribution | 58,000 | 57,000 | ||
| Maximum Compensation | 290,000 | 285,000 | ||
| Social Security Wage Base | 142,800 | 137,700 | ||
| Estate & Gift Tax | ||||
| Estate & Gift Unified Credit | 11,700,000 | 11,580,000 | ||
| Gift Tax Annual Exclusion | 15,000 | 15,000 |
| 2021 Federal Tax Rate Schedule | ||||
| Single | Married -Separate | Married – Joint | Head of Household | |
| 10% | $0 – $9,950 | $0 – $9,950 | $0 – $19,900 | $0 – $14,200 |
| 12% | $9,951 – $40,525 | $9,951 – $40,525 | $19,901 – $81,050 | $14,201 – $54,200 |
| 22% | $40,526 – $86,375 | $40,526 – $86,375 | $81,051 – $172,750 | $54,201 – $86,350 |
| 24% | $86,376 – $164,925 | $86,376 – $164,925 | $172,751 – $329,850 | $86,351 – $164,900 |
| 32% | $164,926 – $209,425 | $164,926 – $209,425 | $329,851 – $418,850 | $164,901 – $209,400 |
| 35% | $209,426 – $523,600 | $209,426 – $314,150 | $418,851 – $628,300 | $209,401 – $523,600 |
| 37% | Greater than $523,600 | Greater than $314,150 | Greater than $628,300 | Greater than $523,600 |
| 2021 Federal Long-Term Capital Gain/Qualified Dividend Rate Schedule | |||
| 0% | 15% | 20% | |
| Single | $0 – $40,400 | $40,401 – $445,850 | Greater than $445,850 |
| Married -Separate | $0 – $40,400 | $40,401 – $250,800 | Greater than $250,800 |
| Married – Joint | $0 – $80,800 | $80,801 – $501,600 | Greater than $501,600 |
| Head of Household | $0 – $54,100 | $51,101 – $473,750 | Greater than $473,750 |