Client Resource Center

Practical answers for your questions

W23082 State Rd 35 • Trempealeau, WI 54661
Phone: 608-534-6558

Tax Facts - 2 Year Comparison

Here's a quick review of some of the tax changes you'll see from 2020 to 2021 as a result of inflation adjustments and new tax laws.

Business equipment Sec. 179 expensing deduction$1,050,000$1,040,000+$10,000
Total purchase limit for full Sec. 179 expensing deduction$2,620,000$2,590,000+$30,000
Standard mileage rate: business56¢ per mile57.5¢ per mile-1.5¢
Standard mileage rate: medical/moving16¢ per mile17¢ per mile-1.0¢
Mileage rate: charitable activity14¢ per mile14¢ per milenc
Maximum wages subject to social security tax$142,800$137,700+$5,100
Social security earnings limit

- Under full retirement age$18,960$18,240+$720
- Full retirement ageNo limitNo limitnc
Top estate tax rate40%40%nc
Estate tax exemption$11,700,000$11,580,000+$120,000
Annual gift tax exclusion (per donee)$15,000$15,000nc
Alternative minimum tax exemption

- Single$73,600$72,900+$700
- Married, joint$114,600$113,400+$1,200
- Married, separate$57,300$56,700+$600
Maximum retirement plan contributions

- IRA for those under age 50$6,000$6,000nc
- IRA for those 50 and over$7,000$7,000nc
- SIMPLE plan for those under age 50$13,500$13,500nc
- SIMPLE plan for those 50 and over$16,500$16,500nc
- 401(k) plan for those under age 50$19,500$19,500nc
- 401(k) plan for those 50 and over$26,000$26,000nc
HSA contribution limits

- Self only$3,600$3,550+$50
- Family$7,200$7,100+$100
- Additional for 55 & older$1,000$1,000nc
"Kiddie tax" threshold$2,200$2,200nc
"Nanny tax" threshold$2,200$2,200nc
Education savings account contribution (Coverdell)$2,000$2,000nc
American opportunity (Hope) credit limit$2,500$2,500nc
Education loan interest deduction$2,500$2,500nc
Personal exemption (suspended through 2025)SuspendedSuspendedna
FICA & self-employment tax

Taxable wages for Social Security/MedicareUp to $142,800Up to $137,700+$5,100
Social Security/Medicare tax rate

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

- Single$12,550$12,400+$150
- Joint returns & surviving spouses$25,100$24,800+$300
- Married filing separately$12,550$12,400+$150
- Head of household$18,800$18,650+$150
- Additional for elderly or blind (married)$1,350$1,300+$50
- Additional for elderly or blind (single)$1,700$1,650+$50