Even though the official numbers have not yet been published by the IRS, we’ve projected many of the key tax figures for 2021.
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 |
IRA Accounts
| 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
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