Key 2021 Tax Numbers (Projected)

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    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

    2020Projected for 2021
    Married filing jointly$24,800$25,100
    Head of household$18,650$18,800
    Married filing separately$12,400$12,550
    Standard deduction for dependentGreater of $1,100 or $350 + earned incomeGreater 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

    2020Projected for 2021
    Married filing jointly$622,050$628,300
    Head of household$518,400$523,600
    Married filing separately$311,025$314,150

    Long-Term Capital Gain 20% Threshold (Based on Taxable Income)

    2020Projected for 2021
    Married filing jointly$496,600$501,600
    Head of household$469,050$473,750
    Married filing separately$248,300$250,800

    Alternative Minimum Tax (AMT)

    2020Projected 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

    2020Projected for 2021
    Above this amount taxed using parents’ tax rates$2,200$2,200

    IRA Accounts

    2020Projected 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

    2020Projected for 2021
    Top gift, estate, and generation-skipping transfer (GST) tax rate40%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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