Key Facts 2021

• Annual Gift Exclusion: $15,000
• Estate, gift and generation-skipping tax exemption - $11,700,000
• IRA and Roth IRA Contribution Limits: $6,000 plus another $1,000 for individuals over 50
• Simple IRA Contributions: $13,500 plus another $3,000 for individuals over 50
• 401(k) Contribution Limits: $19,500 plus another $6,500 for individuals over 50
• SEP IRA Contribution Limits: 25% of compensation or maximum of $58,000
• Top Federal Tax Rate: 37% on income over $523,600 for single taxpayers and $628,300 for married taxpayers
• Top Federal Tax Rate: 37% on income over $13,050 for Estates & Trusts
• Long-Term Federal Capital Gains Rate: 20% on maximum taxable income over $445,850 for single taxpayers and maximum taxable income of $501,600 for married taxpayers
• Long-Term Federal Capital Gains Rate: 15% on maximum taxable income of $40,401-$445,850 for single taxpayers and maximum taxable income of $80,801-$501,600 for married taxpayers
• Additional 3.8% Net Investment Income Tax on investment Income, dividends and capital gains for single taxpayers with AGI greater than $200,000 and married taxpayers with AGI greater than $250,000
• Standard Deduction: $12,550 for single taxpayers, $18,800 for heads of household and $25,100 for married taxpayers
• State and Local Tax Deductions: Individuals can deduct up to $10,000 which includes a combination of property taxes and state income tax or sales tax
• Mortgage Interest: The mortgage interest deduction is capped at loans of $750,000
• Home Equity Loans: Loans for other than home purchase, build or renovation are no longer deductible
• Annual Benefit Limit under Defined Benefit Plans: $230,000
• Health Savings Account: $3,600 contribution limit for single taxpayers, $7,200 contribution limit for family, $1,000 Catch-up for taxpayers over 55