Whether you’re an individual or a business owner, taxes are a fact of life. Still, when you work with an accounting firm like Excellent Tax and Accounting, our dedicated team of tax and accounting professionals makes sure that you have one less thing to worry about. If you are looking for a cost-effective solution to manage your finances or need time to get an exact financial situation to make informed decisions about the economic future, we will help you.

2021 Tax Rates – Single Taxpayers – Standard Deduction $12,550

2020 Rates

10%

0 to $9,950

12%

$9,950 to $40,525

22%

$40,525 to $86,375

24%

$86,375 to $164,925

32%

$164,925 to $209,425

35%

$209,425 to $523,600

37%

Over $518,400

2021 Tax Rates – Married Jointly & Surviving Spouses – Standard Deduction $25,100

10%

0 to $19,900

12%

$19,900 to $81,050

22%

$81,050 to $172,750

24%

$172,750 to $329,850

32%

$329,850 to $418,850

35%

$418,850 to $628,300

37%

Over $628,300

2021 Tax Rates – Married Filing Separately – Standard Deduction $12,550

10%

0 to $9,950

12%

$9,950 to $40,525

22%

$40,525 to $86,375

24%

$86,355 to $164,925

32%

$164,925 to $209,425

35%

$209,425 to $314,150

37%

Over $314,150

2021 Tax Rates – Head of Household – Standard Deduction $18,800

10%

0 to $14,200

12%

$14,200 to $54,200

22%

$54,200 to $86,350

24%

$86,350 to $164,900

32%

$164,900 to $209,400

35%

$209,400 to $523,600

37%

Over $523,600

2021 Tax Rates – Estates & Trusts

10%

0 to $2,650

24%

$2,650 to $9,550

35%

$9,550 to $13,050

37%

Over $13,050

Social Security

2021 Tax Rates

Social Security Tax Rate: Employers

6.2%

Social Security Tax Rate: Employees

6.2%

Social Security Tax Rate: Self-Employed

15.3%

Maximum Taxable Earnings

$142,800

Medicare Base Salary

Unlimited

Medicare Tax Rate: Employers

1.45%

Medicare Tax Rate: Employees

1.45%

Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)

0.9%

Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers)

3.8%

Miscellaneous

2021 Tax Rates

Business expensing limit: Cap on equipment purchases

$2,620,000

Business expensing limit: New and Used Equipment and Software

$1,050,000

Qualified Business Income threshold amount:

$164,925 (single and head of household); $329,800 (married filing joint return)

Qualified Small Employer Health Reimbursement Arrangement limit:

$5,300 (single coverage); $10,700 (family coverage)

Prior-year safe harbor for estimated taxes of higher-income

110% of your 2020 tax liability

Standard mileage rate for business driving

56 cents

Standard mileage rate for medical driving

16 cents

Standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station

16 cents

Standard mileage rate for charitable driving

14 cents

Child Tax Credit

$2,000

Unearned income maximum for children under 19 before kiddie tax applies

$1,100

Maximum capital gains tax rate for taxpayers with income up to $40,400 for single filers, $80,800 for married filing jointly

0%

Maximum capital gains tax rate for taxpayers with income above $40,400 for single filers, $80,800 for married filing jointly

15%

Maximum capital gains tax rate for taxpayers with income above $445,850 for single filers, $501,600 for married filing jointly

20%

Capital gains tax rate for unrecaptured Sec. 1250 gains

25%

Capital gains tax rate on collectibles

28%

Maximum contribution for Traditional/Roth IRA

$6,000 if under age 50
$7,000 if 50 or older

Maximum employee contribution to SIMPLE IRA

$13,500 if under age 50
$16,500 if 50 or older

Maximum Contribution to SEP IRA

25% of eligible compensation
up to $58,000

401(k) maximum employee contribution limit

$19,500 if under age 50
$26,000 if 50 or older

Estate tax exemption

$11,700,000

Annual Exclusion for Gifts

$15,000

Education

2021 Tax Rates

American Opportunity Credit (Hope)

$2,500

Lifetime Learning Credit

$2,000

Student Loan Interest Deduction

$2,500

Coverdell Education Savings Contribution

$2,000

Source: IRS Revenue Procedure 2020-45

Standard Meal Rates for Family Child Care Providers for income tax returns

Continental U.S.

2021-22 Tax Rates (July 1, 2021-June 30, 2022)

For each breakfast

$1.40

For each lunch or supper

$2.63

For each snack (up to 3 per day for each child)

$0.78

Alaska

2021-22 Tax Rates (July 1, 2021-June 30, 2022)

For each breakfast

$2.23

For each lunch or supper

$4.26

For each snack (up to 3 per day for each child)

$1.27

Hawaii

2021-22 Tax Rates (July 1, 2021-June 30, 2022)

For each breakfast

$1.63

For each lunch or supper

$3.08

For each snack (up to 3 per day for each child)

$0.91

Source: Federal Register

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