Year 2021 – Looking Forward to Change

Here are some of the tax changes for 2021. Keep watching this space for updated tax information:

Income Tax Rates for Individuals for Year 2021

Tax Bracket Unmarried Married Filing Jointly Head of Household Married Filing Separately
10% $0-$9,950 $0-$19,900 $0-$14,200 $0-9,950
12% $9,950-$40,525 $19,900-$81,050 $14,200-$54,200 $9,950-$40,525
22% $40,525-$86,375 $81,050-$172,750 $54,200-$86,350 $40,525-$86,375
24% $86,375-$164,925 $172,750-$329,850 $86,350-$164,900 $86,375-$164,925
32% $164,925-$209,425 $329,850-$418,850 $164,900-$209,400 $164,925-$209,425
35% $209,425-$523,600 $418,850-$628,300 $209,400-$523,600 $209,425-$314,150
37% >$523,600 >$628,300 >$523,600 >$314,150

FICA 2021 (6.2%) maximum wage limit increases to $142,800 from $137,700 for 2021, an increase of $5,100 from 2020. There is no Medicare (1.45%) maximum wage limit for 2021. Starting 1/1/2013, a 0.9 percent Additional Medicare Tax applies to all wages that exceed $200,000 ($250,000 for joint return filers and $125,000 for married filing separately filers).

Standard Deduction Amounts for year 2021

  • MFJ & Surviving Spouses – $25,100
  • HH  $18,800
  • Single – $12,550
  • MFS –  $12,550

Business-meeting

Plus Over 65 or Blind Deduction for year 2021

  • Over 65 or blind MFJ, HH may deduct an additional $1,350.
  • Over 65 or blind unmarried, not a surviving spouse taxpayers may deduct an additional $1,700.

Long-term Care Premiums deducted as medical care for year 2021

  • Age <41………………….$ 450
  • Age >40 but <51……….$ 850
  • Age >50 but <61……..$1,690
  • Age >60 but <71……..$4,520
  • Age >70………………..$5,640
Standard Mileage Rates for year 2021

  • Business …………….. $.56/mi.
  • Charitable …………… $.14/mi.
  • Medical ………………. $.16/mi.
  • Moving ……………….. $.16/mi.

You can also check some of the other sections of this website for a brief history of past tax changes. Contact us at 301-649-1600 or 703-269-3918 to get all the answers you need.

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Phone: 301-649-1600

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Virginia Phone: 703-269-3918

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