Looking Ahead... 2021 Tax Numbers

The next year is just around the corner. These numbers will come in helpful for 2021 tax planning and for making changes to federal tax withholding and estimates. As a reminder, MFJ = Married Filing Jointly.

• Standard Deduction:

  • $25,100 for MFJ (increased $300)

  • $12,550 for Single (increased $150)

  • Additional $1,350 for aged or blind (if MFJ)

  • Additional $1,700 for aged or blind (if filing Single)

• Capital Gain Rates:

  • Maximum 0% at $80,800 (MFJ) and $40,400 (Single)

  • Maximum 15% at $501,600 (MFJ) and $445,850 (Single)

• Adoption Credit: $14,440 (increased $140)

• Qualified Business Income Threshold:

  • $329,800 for MFJ (increased $3,200)

  • $164,900 for Single (increased $1,600)

• Unified Credit against the Estate Tax: $11,700,000 (increased $120,000)

• Annual Gift Tax Exclusion: $15,000 (no change)

• Refundable portion of Child Tax Credit: $1,400 (no change)

• 2021 Federal Income Tax Brackets:

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Want more details and more numbers? Read the IRS’s Revenue Procedure 2020-45.