2021 IMPORTANT TAX INFORMATION AND RATES
As everyone rushes to get their Income taxes filed, at least those of us who have a refund coming our way. Below are some important information and rates that might have an impact on that almighty return.
First your standard deductions:
- Single: $12,550
- Married filing joint: 25,100
- Married filing separate: $ 12,550
- Head of household: $18,800
- Surviving Spouse: $25,100
- Dependents: $ 12,550
- Add’l Amount for aged and Blind: (MFJ) $1350 & S/HH $1,700
Second, let’s look at your basic taxable income:
How you classify according to the government and what rate bracket you taxable income falls into.
Single or Married Filing Separate: (taxable income and rate)
- Not over $9,950- 10%
- Between $9,950 and $40,525- $955 + 12%
- Between $40,525 and $86,375- $4,664 + 22%
- Between $86,375 and $164,925- $14,751 + 24%
- Between $164,925 and $209,425- $33,603 + 32%
- Between $209,425 and $523,600- $47,873 + 35%
- Over $523,600- 157, 804.25 + 37%
I don’t know if you noticed but there is a SIGNIFICANT rate increase in that middle class area!
Married Filing Joint or Surviving Spouse: (taxable income and rate)
- Not over $19,900- 10%
- Between $19,900 and $81,050- $1990 + 12%
- Between $81,050 and $172,750- $9,328 + 22$
- Between $172,50 and $329,850- $29,502 + 24$
- Between $329,850 and 418,850- $67206 + 32%
- Between $418,850 and $628,300- $95,686 + 35%
- Over $628,300- 168,993.50 + 37%
Again the rate hike is staggering!
Head of Household: (taxable income and rate)
- Not over $14,200- 10%
- Between $14,200 and $52,200- $1,420 + 12%
- Between $54,200 and $86,350- $6,220 + 22%
- Between $86,350 and $164,900- $13,293 + 24%
- Between $164,900 and $209,400- $32,145 + 32%
- Between $209,400 and $523,600- $46,385 + 35%
- Over $523,600- 156,355 + 37%
Third, Contributions to your Retirement
IRA Contributions
- Under age 50- $6000
- 50 and Over- $7000
Forth, Social security & Medicare
SS Tax Rate:
- Self employed- 12.4%
- Employee- 6.2%
Max wages subject to SS:
- Self employed- 1$154,629
- Employee- $142,800
Medicare Tax Rate:
- Self employed- 2.9%
- Employee- 1.45%
Fifth, Earned income Credit
Maximum AGI: Single; Head of Household, Surviving spouse, Married Filing Separate
- Zero- $ 21,430
- One- $ 42,158
- Two- $ 47,915
- Three- $ 51,464
Maximum AGI: Married Filing Joint
- Zero- $ 27,380
- One- $ 48,108
- Two- $ 53,865
- Three- $ 57,414
Maximum Credit Amounts
The maximum amount of credit you can claim
- No qualifying children: $1,502
- 1 qualifying child: $3,618
- 2 qualifying children: $5,980
- 3 or more qualifying children: $6,728
These figures are here to help you understand your taxes, how you will be taxed based on your income and what can help you expect when you file your return.
We take great pride in our professionalism and reliability when it comes to filing your taxes. Contact us for an appointment.