The following
represents our "quick reference" section for those rates and amounts you need on
specific occasions. Please remember that tax laws (and these amounts) are
continually changing and this listing is only to be used as a starting reference point.
If you need professional advice or further elaboration on a number listed below,
please call our office.
Individual
Deductions and Credits
2021
2022
2023
2024
2025
Standard Deduction, Joint Return And
Surviving Spouse
$25,100
$25,900
$27,700
$29,200
$30,000
Standard Deduction, Head of Household
$18,800
$19,400
$20,800
$21,900
$22,500
Standard Deduction, Single
$12,550
$12,950
$13,850
$14,600
$15,000
Standard Deduction, Married Filing
Separate
$12,550
$12,950
$13,850
$14,600
$15,000
Additional Standard Deduction For
Blindness or Age, Single
$1,700
$1,750
$1,850
$1,950
$2,000
Additional Standard Deduction For
Blindness or Age, Married
$1,300
$1,400
$1,400
$1,550
$1,600
Itemized Deduction Income Threshold
(deductions
reduced by 3% of amount your adjusted gross income exceeds
threshold)
N/A
N/A
N/A
N/A
N/A
Maximum IRA Deduction
$6,000
$6,000
$6,500
$7,000
$7,000
Additional IRA Deduction For Age 50
and Over
$1,000
$1,000
$1,000
$1,000
$1,000
Hope Scholarship Credit Per Eligible
Student
American
Opportunity Tax Credit Per Eligible Student
$2,500
$2,500
$2,500
$2,500
$2,500
Lifetime Learning Credit
$2,000
$2,000
$2,000
$2,000
$2,000
Maximum Contribution To Education
Savings Account (previously
Education IRA)
$2,000
$2,000
$2,000
$2,000
$2,000
Child Tax Credit Under 6
$3,600
$2,000
$2,000
$2,000
$2,000
Child Tax Credit
Ages 6-17
$3,000
$2,000
$2,000
$2,000
$2,000
Business
Deductions
2021
2022
2023
2024
2025
Section 179 Deduction
$1,050,000l
$1,080,000l
$1,160,000l
$1,220,000
$1,250,000
Phaseout Amount
$2.62 mil
$2.7 mil
$2.89 mil
$3.05 mil
$3.13 mil
Capital Gain and Dividend
Tax Rates
2021
2022
2023
2024
2025
Tax Rate
On Qualified Dividends and Capital Gains
15%*
15%*
15%*
15%*
15%*
Dividend and
Capital Gain Tax Rate For High Income Taxpayers (Income in the 39.6%
marginal tax bracket)
20%*
20%*
20%*
20%*
20%*
Tax Rate On Dividends For
Low Income Taxpayers (10% and 15% Brackets)
0%*
0%*
0%*
0%*
0%*
* 0% rate applies to
incomes below $39,375 single, $78,750 MFJ and $52,750 HH. 15%
rate applies to incomes between $39,376-$434,550 single,
$78,751-$488,850 MFJ and $52,751-$461,700 HH. 20% rate applies
to incomes exceeding $434,550 single, $488,850 MFJ and $461,700 HH.
**Beginning in 2013, there is an additional .9% Medicare tax on single
taxpayers earning more than $200,000 and joint filers earning more
than $250,000.
Retirement
Plan Amounts
2021
2022
2023
2024
2025
Limit on 401(k) Elective Deferrals
$19,500
$20,500
$22,500
$23,000
$23,500
Allowable Catch-Up Contribution For
Employees 50 and Over
$6,500
$6,500
$7,500
$7,500
$7,500
Compensation Limit Under 401(a)(17),
404(I) and 408(k)(3)(C)
$290,000
$305,000
$330,000
$345,000
$350,000
Deferral Limit Under A SIMPLE Plan
$13,500
$14,000
$15,500
$16,000
$16,500
SIMPLE Plan Deferral Limit - Age 50
$16,500
$17,000
$19,000
$19,500
$20,000
Limit on Annual Benefit From A Defined
Benefit Plan
$230,000
$245,000
$265,000
$275,000
$280,000
Earnings Definition of Highly
Compensated Employee
$130,000
$135,000
$150,000
$155,000
$160,000
Limit on Deductible Contributions to
Defined Contribution Plans
$58,000
$61,000
$66,000
$69,000
$70,000
Compensation Limit To Trigger a SEP
$600
$600
$600
$600
$600
Estate
And Gift Amounts
2021
2022
2023
2024
2025
Annual Gift Exclusion
$15,000
$16,000
$17,000
$18,000
$19,000
Lifetime Gift Exclusion
$11.7 million
$12.06 million
$12.92 million
$13.61 million
$13.99 million
Estate Tax Exclusion
$11.7 million
$12.06 million
$12.92 million
$13.61 million
$13.99 million
Links to external sites are provided as a courtesy.
They are not endorsed and their accuracy has not been verified by our firm
or staff.
10 Wright Street
Jasper, AL 35501
Ph
(205) 221-4283 (800)
549-8636
Fx
(205) 221-4899
