2021 Tax Facts
FICA
Social Security (OASDI) Wage Base .................................... $ 118,500
Medicare (HI) Wage Base .................................................... $ No Limit
Social Security (OASDI) Percentage .................................... $ 6.2%
Medicare (HI) Percentage .................................................... 1.45% (2.35% for individuals earning over $ 200,000)
Maximum Employee Social Security (OASDI) Witholding .... $ 7,347
Maximum Medicare (HI) Witholding...................................... No Limit
Maximum Amount of Earnings to still Receive Full
Benefits Under Full retirement Age.................................. $ 15,720
Amount of AGI causing SS BEnefits to be taxable (85%)
Married Filing Jointly............................................................. $ 44,000
Single.................................................................................... $ 34,000
Standard Deduction Amounts
Single or Married filing Seperately........................................ $ 6,300
Married Filing Jointly............................................................. $ 12,600
Head of Household............................................................... $ 9,300
Personal Exemption Amount and Phaseout
The personal exemption amount for 2016 is $4,050.
However, the total personal exemptions to which you’re entitled will be phased out (i.e., reduced and eventually eliminated) as your adjusted gross income (i.e., the last line of the first page of your Form 1040) moves through a certain range.
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For single taxpayers, personal exemptions begin to be phased out at $259,400 and are fully phased out by $381,900.
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For married taxpayers filing jointly, personal exemptions begin to be phased out at $311,300 and are fully phased out by $433,800.
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For taxpayers filing as head of household, personal exemptions begin to be phased out at $285,350 and are fully phased out by $407,850.
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For married taxpayers filing separately, personal exemptions begin to be phased out at $155,650 and are fully phased out by $216,900.
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Limitation on Itemized Deductions
As was the case for the last few years, the amount of itemized deductions which you are allowed to claim is reduced by 3% of the amount by which your adjusted gross income exceeds certain threshold amounts. These threshold amounts are the same as the lower threshold amounts listed above for the personal exemption phaseout (e.g., $259,400 for single taxpayers). However:
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Your itemized deductions cannot be reduced by more than 80% as a result of this limitation, and
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Your itemized deductions for medical expenses, investment interest expense, casualty/theft losses, and gambling losses are not reduced as a result of this limitation.
IRA and 401(k) Contribution Limits
For 2016, the contribution limit to Roth and traditional IRAs is unchanged at $5,500, with an additional catch-up contribution of $1,000 for people age 50 or older.
The contribution limit for 401(k), 403(b), and most 457 plans is unchanged at $18,000, with an additional catch-up contribution of $6,000 for people age 50 or older.
The maximum possible contribution for defined contribution plans (e.g., for a self-employed person with a sufficiently high income contributing to a SEP IRA) is unchanged at $53,000.
AMT Exemption Amount
After adjusting for inflation, the following are the AMT exemptions for 2016:
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$53,900 for single taxpayers,
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$83,800 for married taxpayers filing jointly, and
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$41,900 for married taxpayers filing separately.