Tax Rates

2021 Tax Rates

2021 Tax Brackets

Tax Rate Single filers Married Filing Jointly or Qualifying Widow(er) Married Filing Separately Head of Household
10% $0 to $9,950 $0 to $19,900 $0 to $9,950 $0 to $14,200
12% $9,951 to $40,525 $19,901 to $81,050 $9,951 to $40,525 $14,201 to $54,200
22% $40,526 to $86,375 $81,051 to $172,750 $40,526 to $86,375 $54,201 to $86,350
24% $86,376 to $164,925 $172,751 to $329,850 $86,376 to $164,925 $86,351 to $164,900
32% $164,926 to $209,425 $329,851 to $418,850 $164,926 to $209,425 $164,901 to $209,400
35% $209,426 to $523,600 $418,851 to $628,300 $209,426 to $314,150 $209,401 to $523,600
37% $523,601 or more $628,301 or more $314,151 or more $523,601 or more
Standard Deduction $12,550 $25,100 $12,550 $18,800

Captial Gains

Tax-filing status Single Married, filing jointly Married, filing separately Head of household
0% $0 to $40,400 $0 to $80,800 $0 to $40,400 $0 to $54,100
15% $40,401 to $445,850 $80,801 to $501,600 $40,401 to $250,800 $54,101 to $473,750
20% $445,851 or more $501,601 or more $250,801 or more $473,751 or more

Social Security

Social Security 2021 Tax Rates
Social Security Tax Rate: Employers 6.2%
Social Security Tax Rate: Employees 6.2%
Social Security Tax Rate: Self-Employed 15.3%
Maximum Taxable Earnings $142,800
Medicare Base Salary No Limit
Medicare Tax Rate: Employers 1.45%
Medicare Tax Rate: Employees 1.45%
Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers) 0.9%
Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers) 3.8%

Education

Education 2020 Tax Rates
American Opportunity Credit (Hope) $2,500
Lifetime Learning Credit $2,000
Student Loan Interest Deduction $2,500
Coverdell Education Savings Contribution $2,000

2021-2022 Standard Meal Rates for Family Child Care Providers

2021-2022 CACFP Reimbursement Rates (July 1, 2020-June 30, 2021)
Continental U.S. Tier 1 Tier 2
For each breakfast $1.40 $0.51
For each lunch or supper $2.63 $1.59
For each snack (up to 3 per day for each child) $0.78 $0.21
Alaska Tier 1 Tier 2
For each breakfast $2.23 $0.79
For each lunch or supper $4.26 $2.57
For each snack (up to 3 per day for each child) $1.27 $0.35
Hawaii Tier 1 Tier 2
For each breakfast $1.63 $0.58
For each lunch or supper $3.08 $1.86
For each snack (up to 3 per day for each child) $0.91 $0.25

2021 Miscellaneous

Miscellaneous 2021 Tax Rates
Business expensing limit: Cap on equipment purchases $2,620,000
Business expensing limit: New and Used Equipment and Software $1,050,000
Qualified Business Income threshold amount: $164,900 (single and head of household); $329,800 (married filing joint return)
Qualified Small Employer Health Reimbursement Arrangement limit: $5,300 (single coverage); $10,700 (family coverage)
Prior-year safe harbor for estimated taxes of higher-income 110% of your 2019 tax liability
The standard mileage rate for business driving 56 cents
The standard mileage rate for moving driving 16 cents
The standard mileage rate for medical driving 16 cents
The standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station 16 cents
The standard mileage rate for charitable driving 14 cents
Child Tax Credit – Age 5 and under at the end of 2021 $3,600
Child Tax Credit – Age 6-17 at the end of 2021 $3,000
Unearned income maximum for children under 19 before kiddie tax applies $1,100
Capital gains tax rate for unrecaptured Sec. 1250 gains 25%
Capital gains tax rate on collectibles 28%
The maximum contribution for Traditional/Roth IRA $6,000 if under age 50
  $7,000 if 50 or older
Maximum employee contribution to SIMPLE IRA $13,500 if under age 50
  $16,500 if 50 or older
Maximum Contribution to SEP IRA 25% of eligible compensation
  up to $57,000
401(k) maximum employee contribution limit $19,500 if under age 50
  $26,000 if 50 or older
Estate tax exemption $11,700,000
Annual Exclusion for Gifts $15,000

Contact Us:

303 Convention Way, Suite 4
Redwood City, CA 94063
Tel: 650-361-1235
Fax: 650-361-1726
E-mail: lori@llopezcpa.com

Hours:

Monday - Thursday: 10:00AM - 4:30PM
Friday: 10:00AM - 4:00PM
lori@llopezcpa.com
www.llopezcpas.com