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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