2020 & 2019 IRS Rates and Limitations Schedule

2020 and 2019 IRS Rates and Limitations Schedule

In this post you will find answers to frequently requested IRS rates and limitations such as the retirement contribution limits, auto mileage rates and many others. Please contact us if you have any questions.

20202019
Social Security
Wage base for employer, employee and self-employed        $137,700$132,900
Medicare wage base for employer, employee and self-employedNo limitNo limit
Medicare tax rate1.45%1.45%
Social Security tax rate6.20%6.20%
Maximum social security withheld per employee$8,537.40$8,239.80
Self-employment tax rate15.3%15.3%
Portion of self-employment tax deductible on tax return50%50%
Maximum yearly earnings, before Social Security benefits reduction:
Under full retirement age
Full retirement age and older

$18,240
Unlimited

$17,640
Unlimited
Federal Unemployment Tax
Wage base on which employer pays tax$7,000$7,000
Tax rate (net)0.6%0.6%
Deposit level – after this is reached, deposit total$500$500
Missouri Unemployment Tax
Wage base on which employer pays tax$11,500$12,000
Minimum Wage
Illinois – increases to $10.00 on 7/1/2020
($0.50 less for employees under 18 years of age)
$9.25/hr$8.25/hr
Missouri$9.45/hr$8.60/hr
Section 179 Asset Expense Deduction Maximum$1,040,00$1,020,000
Bonus Depreciation on Qualifying Property100%100%
Auto Mileage Rates
Standard rate$0.575$0.58
Rate when used in charitable work$0.14$0.14
Rate when used for medical and moving$0.17$0.20
Standard Deduction
Married filing joint$24,800$24,400
Single and married filing separately$12,400$12,200
Head of household$18,650$18,350
Kiddie Tax Unearned Income Threshold (Child under 18)$2,200$2,200
Net Investment Income Tax and Additional Medicare Tax
Net Investment Income Tax rate

Beginning at modified adjusted gross income:
Married filing joint
Married filing separately
Single and head of household
3.8%


$250,000
$125,000
$200,000
3.8%


$250,000
$125,000
$200,000
Additional Medicare Tax

Beginning at wage and self-employment income:
Married filing joint
Married filing separately
Single and head of household
0.9%


$250,000
$125,000
$200,000
0.9%


$250,000
$125,000
$200,000
Pensions
Defined benefit plan, maximum annual benefit$230,000$225,000
Defined contribution annual limit$57,000$56,000
Maximum compensation$285,000$280,000
Elective deferrals/401(k) limitation$19,500$19,000
Traditional and Roth IRA contribution limit$6,000$6,000
Phase out of allowable Roth IRA contribution begins at AGI:
Married filing joint
Married filing separately
Single and head of household

$196,000
$0
$124,000

$193,000
$0
$122,000
SIMPLE Plans: Maximum employee contributions$13,500$13,500
Elective catch-up contributions: 401(k), 403(b), 457 Plans$6,500$6,000
Elective catch-up contributions: SIMPLEs$3,000$3,000
Elective catch-up contributions: Traditional and Roth IRAs$1,000$1,000
Estate Tax
Exclusion$11,580,000$11,400,000
Top tax rate or bracket40%40%
Gift Tax
Lifetime exclusion$11,580,000$11,400,000
Annual exclusion$15,000$15,000
HSA Contributions
Individuals with self-only coverage$3,550$3,500
Individuals with family coverage$7,100$7,000
Elective catch-up contributions$1,000$1,000

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