Client Resource Center

Practical answers for your questions

1450 Frazee Road, Suite 714 • San Diego, CA 92108
Phone: 619-297-1040

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.

Provision20202019
Business equipment Sec. 179 expensing deduction$1,040,000$1,020,000
Total purchase limit for full Sec. 179 expensing deduction$2,590,000$2,550,000
Standard mileage rate: Business
57.5¢ per mile58¢ per mile
Standard mileage rate: Medical/moving
17¢ per mile20¢ per mile
Mileage rate: Charitable activity14¢ per mile14¢ per mile
Maximum wages subject to Social Security tax$137,700$132,900
Social Security earnings limit

- Under full retirement age$18,240$17,640
- Full retirement ageNo limitNo limit
Top estate tax rate40%40%
Estate tax exemption
$11,580,000$11,400,000
Annual gift tax exclusion (per donee)$15,000$15,000
Alternative minimum tax exemption

- Single$71,700$71,700
- Married, joint$111,700$111,700
- Married, separate$55,850$55,850
Maximum retirement plan contributions

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

- Self only$3,500$3,500
- Family$7,000$7,000
- Additional for 55 & older$1,000$1,000
"Kiddie tax" threshold$2,200$2,200
"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)
SuspendedSuspended
FICA & self-employment tax

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

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

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