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 |
Start the conversation
Start the conversation
No matter where you are on your financial journey, our team is here to help. Reach out today to schedule a consultation with one of our experienced advisors. We’d love to get to know you, understand your goals, and share how our team can help you achieve financial peace of mind.
Take the First Step
The Park City Club hosted us again for our Surviving Retirement workshop. Judd takes the time to explain how our tax brackets could change through retirement, and how that impacts your planning.
Is your current professional helping you avoid paying unnecessary taxes? This is standard for all of our clients.
☎️ 1-888-677-9910
💻 info@novawealthmanagement.com
✅ Send us a message on social media
#RetirementPlan #retirementgoals #wealthbuilding #wealthmanagement #ira #finance #retirementplanning #retirement
May 14
These past 7 days, we’ve been at Connor’s Steak House talking about Surviving Retirement. Stephen uses this opportunity to remind people that income taxes aren’t going anywhere.
Do you have an income tax strategy? Most clients we meet have what they think is a plan, but it tends to be more reactive planning than an actual plan.
💰 Is your plan working?
☎️ 239-444-1794 is our phone number if it makes sense to review your plan.
May 11
Behind so many strong families are incredible mothers whose love, sacrifice, and guidance shape the future every day.
This Mother’s Day, we honor and celebrate you. Wishing you a day filled with love, happiness, and appreciation. 💖
— The Nova Wealth Management Team
#HappyMothersDay #NovaWealthManagement
May 10
sign up for our newsletter
sign up for our newsletter
Receive timely updates on investment strategies, tax planning tips, and retirement guidance from our team of wealth management professionals. Subscribe today to stay ahead.