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Important Tax Figures for 2019

The following table provides some important federal tax information for 2019, as compared with 2018. Many of the dollar amounts are unchanged and some changed only slightly due to inflation.

Social Security/ Medicare2019
2018
Social Security Tax Wage Base $132,900$128,400
Medicare Tax Wage Base No limit
No limit
Employee portion of Social Security6.2%6.2%
Employee portion of Medicare
1.45%1.45%
Individual Retirement Accounts20192018
Roth IRA Individual, up to 100% of earned income $   6,000 $  5,500
Traditional IRA Individual, up to 100% of earned Income $   6,000$   5,500
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older$   1,000$   1,000
Qualified Plan Limits20192018
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)$  56,000 $ 55,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) $225,000 $220,000
Maximum compensation used to determine contributions$280,000 $275,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))$  19,000$  18,500
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older $    6,000 $   6,000
SIMPLE deferrals (Section 408(p)(2)(A))$   13,000 $ 12,500
SIMPLE additional “catch-up” contributions for employees age 50 and older$    3,000 $   3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B)) $125,000 $120,000
Compensation defining key employee (officer) $180,000 $175,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))$      600 $      600
Driving Deductions20192018
Business mileage, per mile58 cents
54.5 cents
Charitable mileage, per mile14 cents14 cents
Medical and moving, per mile20 cents
18 cents
Business Equipment20192018
Maximum Section 179 deduction$1,020,000$1,000,000
Phase out for Section 179$2.55 million$2.5 million
Transportation Fringe Benefit Exclusion20192018
Monthly commuter highway vehicle and transit pass$  265 $  260
Monthly qualified parking$  265 $  260
Standard Deduction20192018
Married filing jointly $24,400$24,000
Single (and married filing separately)$12,200$12,000
Heads of Household$18,350$18,000
Domestic Employees20192018
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.$ 2,100$ 2,100
Kiddie Tax20192018
Net unearned income not subject to the “Kiddie Tax”$ 2,200$ 2,100
Estate Tax20192018
Federal estate tax exemption$11.4 million
$11.18
million
Maximum estate tax rate40%40%
Annual Gift Exclusion20192018
Amount you can give each recipient$15,000$15,000

 

©2019

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