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.
| 2020 | 2019 | |
|---|---|---|
| Social Security | ||
| Wage base for employer, employee and self-employed | $137,700 | $132,900 |
| Medicare wage base for employer, employee and self-employed | No limit | No limit |
| Medicare tax rate | 1.45% | 1.45% |
| Social Security tax rate | 6.20% | 6.20% |
| Maximum social security withheld per employee | $8,537.40 | $8,239.80 |
| Self-employment tax rate | 15.3% | 15.3% |
| Portion of self-employment tax deductible on tax return | 50% | 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%$500 |
| 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 Property | 100% | 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 bracket | 40% | 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 |