Even though the official numbers have not yet been published by the IRS, we wanted to send over the projected key tax figures for 2021. When the official numbers are released, we’ll share an update with an associated Email Alert.
Standard deduction |
|
2020 |
Projected for 2021 |
Married filing jointly |
$24,800 |
$25,100 |
Head of household |
$18,650 |
$18,800 |
Single |
$12,400 |
$12,550 |
Married filing separately |
$12,400 |
$12,550 |
Standard deduction for dependent |
Greater of $1,100 or $350 + earned income |
Greater of $1,100 or $350 + earned income |
Additional standard deduction for blind or aged (65 or older) |
Single/Head of household |
$1,650 |
$1,700 |
All others |
$1,300 |
$1,350 |
Taxable income threshold for top 37% income tax bracket |
|
2020 |
Projected for 2021 |
Married filing jointly |
$622,050 |
$628,300 |
Head of household |
$518,400 |
$523,600 |
Single |
$518,400 |
$523,600 |
Married filing separately |
$311,025 |
$314,150 |
Long-term capital gain 20% threshold (based on taxable income) |
|
2020 |
Projected for 2021 |
Married filing jointly |
$496,600 |
$501,600 |
Head of household |
$469,050 |
$473,750 |
Single |
$441,450 |
$445,850 |
Married filing separately |
$248,300 |
$250,800 |
Alternative minimum tax (AMT) |
|
2020 |
Projected for 2021 |
Maximum AMT exemption amount |
Married filing jointly |
$113,400 |
$114,600 |
Single/Head of household |
$72,900 |
$73,600 |
Married filing separately |
$56,700 |
$57,300 |
Exemption phaseout threshold |
Married filing jointly |
$1,036,800 |
$1,047,200 |
Single/Head of household |
$518,400 |
$523,600 |
Married filing separately |
$518,400 |
$523,600 |
26% on AMTI* up to amount, 28% on AMTI above amount |
Married filing separately |
$98,950 |
$99,950 |
All others |
$197,900 |
$199,900 |
*Alternative minimum taxable income
Kiddie tax: Child’s unearned income |
|
2020 |
Projected for 2021 |
Above this amount taxed using parents’ tax rates |
$2,200 |
$2,200 |
IRAs |
|
2020 |
Projected for 2021 |
Contribution limits |
Traditional and Roth IRAs (combined) |
$6,000 ($7,000 if age 50 or older) |
$6,000 ($7,000 if age 50 or older) |
Roth IRA income phaseout range (contributions) |
Single/Head of household |
$124,000 to $139,000 |
$125,000 to $140,000 |
Married filing jointly |
$196,000 to $206,000 |
$198,000 to $208,000 |
Married filing separately |
$0 to $10,000 |
$0 to $10,000 |
Traditional IRA income phaseout range (deductibility) |
1. Covered by an employer-sponsored plan and filing as: |
Single/Head of household |
$65,000 to $75,000 |
$66,000 to $76,000 |
Married filing jointly |
$104,000 to $124,000 |
$105,000 to $125,000 |
2. Not covered by plan but filing joint return with covered spouse |
$196,000 to $206,000 |
$198,000 to $208,000 |
3. Married filing separately and either spouse is covered by plan |
$0 to $10,000 |
$0 to $10,000 |
Estate planning |
|
2020 |
Projected for 2021 |
Top gift, estate, and generation-skipping transfer (GST) tax rate |
40% |
40% |
Annual gift tax exclusion |
$15,000 |
$15,000 |
Noncitizen spouse annual gift tax exclusion |
$157,000 |
$159,000 |
Gift tax and estate tax applicable exclusion amount |
$11,580,0001 + DSUEA2 |
$11,700,0001 + DSUEA2 |
GST tax exemption |
$11,580,000 |
$11,700,000 |
1Basic exclusion amount
2Deceased spousal unused exclusion amount |
|