Contribution Limits
Federal Income Tax Brackets
| Tax Rate | Married Filing Jointly (MFJ) | Single | Estates & Trusts |
|---|---|---|---|
| 10% | $0 – $24,800 | $0 – $12,400 | $0 – $3,300 |
| 12% | $24,801 – $100,800 | $12,401 – $50,400 | – |
| 22% | $100,801 – $211,400 | $50,401 – $105,700 | – |
| 24% | $211,401 – $403,550 | $105,701 – $201,775 | $3,301 – $11,700 |
| 32% | $403,551 – $512,450 | $201,776 – $256,225 | – |
| 35% | $512,451 – $768,700 | $256,226 – $640,600 | $11,701 – $16,000 |
| 37% | Over $768,700 | Over $640,600 | Over $16,000 |
Standard Deduction
| Filing Status | Standard Deduction | Additional Deduction Category | Additional Deduction |
|---|---|---|---|
| MFJ | $32,200 | Married (Each Eligible Spouse) | $1,650 |
| Single | $16,100 | Unmarried (Single, HOH) | $2,050 |
Itemized Deductions (Schedule A)
| Type | Amount | Phaseout Range |
|---|---|---|
| SALT | $10,000 – $40,400 | $505,000 – $605,000 (single or MFJ)1 |
Non-Itemized Below-the-Line Deductions
| Type | Amount | Phaseout Range |
|---|---|---|
| Senior (65+) | $6,000 (per eligible individual) | $75,000 – $175,000 (single) $150,000 – $250,000 (MFJ) |
| Charitable | $1,000 (single) $2,000 (MFJ) | N/A |
| Car Loan Interest | $10,000 (on US-assembled vehicles) | $100,000 – $150,000 (single) $200,000 – $250,000 (MFJ) |
| QBI | Up to 20% of QBI ($400 minimum) | $201,750 – $276,750 (single)2 $403,500 – $553,500 (MFJ)2 |
Alternative Minimum Tax (AMT)
| Item | MFJ | Single |
|---|---|---|
| Exemption Amount | $140,200 | $90,100 |
| 28% Tax Rate Applies To Income Over | $244,500 | $244,500 |
| Exemption Phaseout Threshold | $1,000,000 | $500,000 |
| Exemption Elimination | $1,280,400 | $680,200 |
Long-Term Capital Gains Tax
| Taxpayer | 0% Rate | 15% Rate | 20% Rate |
|---|---|---|---|
| MFJ | ≤ $98,900 | $98,901 – $613,700 | > $613,700 |
| Single | ≤ $49,450 | $49,451 – $545,500 | > $545,500 |
| Estates/Trusts | ≤ $3,300 | $3,301 – $16,250 | > $16,250 |
3.8% Net Investment Income Tax (NIIT)
| Filing Status | Threshold |
|---|---|
| MFJ | $250,000 |
| Single | $200,000 |
Selected Tax Credits
| Type | Amount | Phaseout Range |
|---|---|---|
| Child Tax Credit (Under 17) | $2,200 ($1,700 refundable) | Begins at $200,000 (single) Begins at $400,000 (MFJ) |
| Child and Dependent Care | 20–50% of the first $3,000 in qualified expenses (or the first $6,000 if you have 2 or more children) |
Education Credits & Deductions
| Type | Amount | Phaseout Range |
|---|---|---|
| American Opportunity | 100% (first $2,000) 25% (next $2,000) | $80,000 – $90,000 (single) $160,000 – $180,000 (MFJ) |
| Lifetime Learning | 20% (first $10,000) | $80,000 – $90,000 (single) $160,000 – $180,000 (MFJ) |
| Student Loan Interest | $2,500 | $85,000 – $100,000 (single) $175,000 – $205,000 (MFJ) |
Estate & Gift Tax
| Lifetime Exemption | Tax Rate | Gift Tax Annual Exclusion |
|---|---|---|
| $15,000,000 | 40% | $19,000 |
Retirement Plans
| Item | Value |
|---|---|
| Elective Deferrals (401(k), 403(b), 457) – Contribution Limit | $24,500 |
| Elective Deferrals – Catch Up (Age 50+) | $8,000 |
| Elective Deferrals – Catch Up (Ages 60–63) | $11,250 |
| Elective Deferrals – 403(b) Additional Catch Up (15+ Years of Service) | $3,000 |
| Defined Contribution Plan – Eligible Compensation Limit | $360,000 |
| Defined Contribution Plan – Limit Per Participant | $72,000 |
| Defined Benefit Plan – Max Annual Benefit | $290,000 |
SIMPLE IRA
| Item | Value |
|---|---|
| Contribution Limit | $17,000 ($18,100, if eligible for 10% increase) |
| Catch Up (Age 50+) | $4,000 ($3,850, if eligible for 10% increase) |
| Catch Up (Ages 60–63) | $5,250 |
SEP IRA
| Item | Value |
|---|---|
| Maximum % of Comp (Adj. Net Earnings If Self–Employed) | 25% |
| Contribution Limit | $72,000 |
| Minimum Compensation | 800 |
Traditional IRA & Roth IRA Contributions
| Item | Value |
|---|---|
| Contribution Limit | $7,500 |
| Catch Up (Age 50+) | $1,100 |
Roth IRA Eligibility
| Item | Range |
|---|---|
| Single MAGI Phaseout | $153,000 – $168,000 |
| MFJ MAGI Phaseout | $242,000 – $252,000 |
Traditional IRA Deductibility (If Covered by Work Plan)
| Item | Range |
|---|---|
| Single MAGI Phaseout | $81,000 – $91,000 |
| MFJ MAGI Phaseout | $129,000 – $149,000 |
| MFJ (If Only Spouse Is Covered) | $242,000 – $252,000 |
Qualified Longevity Annuity Contract (QLAC)
| Item | Value |
|---|---|
| QUALIFIED LONGEVITY ANNUITY CONTRACT | $210,000 (lifetime limit) |
Qualified Charitable Distribution (QCD)
| Item | Value |
|---|---|
| QUALIFIED CHARITABLE DISTRIBUTION | $111,000 (per year) |
Social Security
| Item | Value |
|---|---|
| Social Security Wage Base | $184,500 |
| Medicare Wage Base | No Limit |
| COLA | 2.8% |
| Full Retirement Age | Age 67 (if born in 1960 or later) |
| Earnings Limit (Below FRA) | $24,480 |
| Earnings Limit (Reaching FRA) | $65,160 |
| Taxability of Benefits | MFJ Provisional Income | Single Provisional Income |
|---|---|---|
| 0% Taxable | < $32,000 | < $25,000 |
| 50% Taxable | $32,000 – $44,000 | $25,000 – $34,000 |
| 85% Taxable | > $44,000 | > $34,000 |
Medicare Premiums & IRMAA Surcharge
| Item | Value |
|---|---|
| Part B Premium | $202.90 |
| Part A Premium | Less than 30 Credits: $565 |
| Part A Premium (30–39 Credits) | 30-39 Credits: $311 |
| MFJ MAGI | Single MAGI | Part B Surcharge | Part D Surcharge |
|---|---|---|---|
| $218,000 or less | $109,000 or less | – | – |
| $218,001 – $274,000 | $109,001 – $137,000 | $81.20 | $14.50 |
| $274,001 – $342,000 | $137,001 – $171,000 | $202.90 | $37.50 |
| $342,001 – $410,000 | $171,001 – $205,000 | $324.60 | $60.40 |
| $410,001 – $749,999 | $205,001 – $499,999 | $446.30 | $83.30 |
| $750,000 or more | $500,000 or more | $487 | $91 |
Health Savings Account (HSA)
| Coverage | Contribution | Minimum Annual Deductible | Max Out-of-Pocket |
|---|---|---|---|
| Individual | $4,400 | $1,700 | $8,500 |
| Family | $8,750 | $3,400 | $17,000 |
| Age 55+ Catch Up | $1,000 | – | – |
Flexible Spending Accounts (FSA)
| Account Type | Limit |
|---|---|
| Health Care FSA (or LPFSA) | $3,400 ($680 carryover limit) |
| Dependent Care FSA | $7,500 |
Trump Account
| Item | Value |
|---|---|
| Contribution Limit (Under 18) | $5,000 |
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RMDs can affect more than your retirement account balance.
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Phantom Income: Why You Could Owe Taxes on Money You Never Received | Nova Wealth Management
Phantom Income: Why You Could Owe Taxes on Money You Never Received Most people assume they only owe taxes on money they actually receive. However, certain investments, business structures, and debt arrangements can create taxable income even when no cash is distributed. This concept is known as phantom income. A recent Investopedia article titled Phantom Income: What It Is and How It`s Taxed……
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