Numbers for Tax Year 2021

Self Employment

Per Diem Rates

Depreciation

  • How to Depreciate Property
  • Recovery Period 5 years, except: office furniture: 7; roads, shrubbery, fences: 15; rentals: 27.5
  • Section 179 deduction maximum $1 million; can not create a loss.

Earned Income Tax Credit

  • Pub 596, Earned Income Credit
  • Form 8867, Paid Preparerís Due Diligence Checklist
  • Form 14815, Supporting Documents for CTC or ODC
  • AGI must be less than $50,954 ($56,844 for married filing jointly) for three or more qualifying children
  • AGI must be less than $47,440 ($53,330 for married filing jointly) for two qualifying children
  • AGI must be less than $41,756 ($47,646 for married filing jointly) for one qualifying child
  • AGI must be less than $15,820 ($21,710 for married filing jointly) for no qualifying child
  • Must Have a Valid Social Security Number (SSN)
  • Filing Status Cannot Be "Married Filing Separately"
  • Must Be a U.S. Citizen or Resident Alien All Year
  • Cannot file Form 2555, Foreign Earned Income
  • Investment Income Must Be $3,650 or Less
  • Must Work and Have Earned Income
  • Without Qualifying Children, You Must Be at Least Age 25 but Under Age 65
  • EitcOutreach.org

Tax Year 2021 Numbers

  • Standard Deduction: $12,550 for individuals, $18,800 for heads of household, and $25,100 for married couples filing jointly and surviving spouses. The standard deduction is $1,300 higher for over 65 or blind; $1,650 higher if also unmarried and not a surviving spouse.

  • Tax Rates Single: 10% up to $9,950; 12% up to $40,525; 22% up to $86,375; 24% up to $164,925

  • Tax Rates Married: 10% up to $19,900; 12% up to $81,050; 22% up to $172,750; 32% up to $329,850

  • Tax Rates HOH: 10% up to $13,850; 12% up to $52,850; 22% up to $84,200; 24% up to $160,700

  • Child Tax Credit: up to $2,000 per qualifying child. The child must be under 17 at the end of the year. The refundable portion of the credit is limited to $1,400. $500 nonrefundable credit for qualifying dependents other than children.

  • Child and Dependent Care Credit: 20% to 35% of up to $3,000 of child care and similar costs for a child under 13, an incapacitated spouse or parent, or another dependent so that you can work. Up to $6,000 of expenses for two or more dependents.

  • Educator expenses: $250

  • Mileage Rates: 57.5 cents for every mile of business travel; 17 cents per mile driven for medical or moving purposes; 14 cents per mile driven in service of charitable organizations

  • IRA contribution limit: $6000; age 50+: $7000; excess: 6% penalty; early distribution: 10% penalty

  • HSA contribution limit: self $3500, family $7000; age 55+: plus $1000; excess: 6% penalty; excess distribution: 20% penalty

  • Alimony is ignored if settlement after 12/31/2018

  • Medicare premiums $135.50/month = 1,626/year ($144.60 for 2020, plus 1.3% for 2021


Wolfgang Barwig, EA