The Reference Section

A collection of wealth improvement articles

Tax Facts - 2 Year Comparison

Here's a quick review of some of the tax changes you'll see from 2018 to 2019 as a result of inflation adjustments and new tax laws.

Business equipment Sec. 179 expensing deduction$1,020,000$1,000,000
Total purchase limit for full Sec. 179 expensing deduction$2,550,000$2,500,000
Standard mileage rate: business
58¢ per mile54.5¢ per mile
Standard mileage rate: medical/moving
20¢ per mile18¢ per mile
Mileage rate: charitable activity 14¢ per mile14¢ per mile
Maximum wages subject to social security tax$132,900$128,400
Social security earnings limit

- Under full retirement age$17,640$17,040
- Full retirement ageNo limitNo limit
Top estate tax rate40%40%
Estate tax exemption
Annual gift tax exclusion (per donee)$15,000$15,000
Alternative minimum tax exemption

- Single$71,700$70,300
- Married, joint$111,700$109,400
- Married, separate$55,850$54,700
Maximum retirement plan contributions

- IRA for those under age 50$6,000$5,500
- IRA for those 50 and over$7,000$6,500
- SIMPLE plan for those under age 50$13,000$12,500
- SIMPLE plan for those 50 and over$16,000$15,500
- 401(k) plan for those under age 50$19,000$18,500
- 401(k) plan for those 50 and over$25,000$24,500
HSA contribution limits

- Self only$3,500$3,400
- Family$7,000$6,750
- Additional for 55 & older$1,000$1,000
"Kiddie tax" threshold$2,200$2,100
"Nanny tax" threshold$2,100$2,100
Education savings account contribution (Coverdell)$2,000$2,000
American opportunity (Hope) credit limit$2,500$2,500
Education loan interest deduction$2,500$2,500
Personal exemption (suspended through 2025)
Suspended Suspended
FICA & self-employment tax

Taxable wages for Social Security/MedicareUp to $132,900Up to $128,400
Social Security/Medicare tax rate

- Employees7.65%7.65%
- Employers7.65%7.65%
- Self-employed15.3%15.3%
Standard deduction

- Single$12,200$12,000
- Joint returns & surviving spouses$24,400$24,000
- Married filing separately$12,200$12,000
- Head of household$18,350$18,000
- Additional for elderly or blind (married)$1,300$1,300
- Additional for elderly or blind (single)$1,650$1,600