2019 Tax Rates, Schedules, and Contribution Limits

Income tax

If taxable income is over But not over The tax is Of the amount over
Married/Filing jointly and qualifying widow(er)s
$0 $19,400 $0.00 + 10% $0
$19,400 $78,950 $1,940 + 12% $19,400
$78,950 $168,400 $9,086 + 22% $78,950
$168,400 $321,450 $28,765 + 24% $168,400
$321,450 $408,200 $65,497 + 32% $321,450
$408,200 $612,350 $93,257 + 35% $408,200
$612,350 $164,709.50 + 37% $612,350
Single
$0 $9,700 $0.00 + 10% $0
$9,700 $39,475 $970 + 12% $9,700
$39,475 $84,200 $4,543 + 22% $39,475
$84,200 $160,725 $14,382.50 + 24% $84,200
$160,725 $204,100 $32,748.50 + 32% $160,725
$204,100 $510,300 $46,628.50 + 35% $204,100
$510,300 $153,798.50 + 37% $510,300
Estates and trusts
$0 $2,600 $0.00 + 10% $0
$2,600 $9,300 $260 + 24% $2,600
$9,300 $12,750 $1,868 + 35% $9,300
$12,750 $3,075.50 + 37% $12,750

Tax on corporations and other businesses

  • 21% tax rate applied on C-corporation income
  • Taxpayers may generally deduct up to 20% of the qualified business income (QBI) of S corporations, partnerships, and sole proprietorships (reduced by net capital gain and qualified dividends), subject to limitations:
    • Deduction not available for a Specified Service Trade orBusiness (SSTB)if taxable income exceeds $210,700 (single) or $421,400 (married/filing jointly); the deduction is subjectto a phaseout unless taxable income is at or below $160,700 (single) or $321,400 (married/filing jointly)
    • If the taxable income of other businesses exceeds $210,700 (single) or $421,400 (married/filing jointly), the deduction is limited to the lesser of:(a) 20% of QBI or (b) the greater of (i) 50% ofW-2wages paid by each business or(ii) 25% of W-2wages paid by each business plus 2.5% ofthe unadjusted basis of qualified property;wage and qualified property limitations are not applicable to taxable incomes at or below$160,700 (single) or $321,400 (married/filing jointly) and are fully phased in once taxable income exceeds $210,700 (single) or $421,400 (married/filing jointly)

Employer Retirement Plans

Maximum elective deferral to retirement plans, e.g., 401(k), 403(b) $19,000
Catch-up contribution limit for 401(k), 403(b), and 457 plans $6,000
Maximum elective deferral to SIMPLE IRA plans $13,000
Catch-up contribution limit for SIMPLE plans $3,000
Maximum elective deferral to 457 plans of gov’t and tax-exempt employers $19,000
Limit on annual additions to defined contribution plans $56,000
Annual compensation threshold requiring SEP contribution $600
Limit on annual additions to SEP plans $56,000
Maximum annual compensation taken into account for contributions $280,000
Annual benefit limit under defined benefit plans $225,000
Used in definition of highly compensated employee $125,000
Health flexible spending account maximum salary reduction contribution $2,700

Sources: IRS and Social Security Administration updates 2019.

Tax on capital gains and qualified dividends

Single Income
Married/Filing jointly/Qualifying Widow(er)
Tax rate
$0–$39,375 $0–$78,750 0%
Over $39,375 but not over $434,550 Over $78,750 but not over $488,850 15%
Over $434,550 Over $488,850 20%

Additional 3.8% federal net investment income (NII) tax applies to individuals on the lesser of NII or modified AGI in excess of $200,000 (single) or $250,000 (married/filing jointly and qualifying widow(er)s). Also applies to any trust or estate on the lesser of undistributed NII or AGI in excess of the dollar amount at which the estate/trust pays income taxes at the highest rate (i.e., $12,750)

Kiddie tax*

Child’s unearned income above $2,200 is subject to the same tax schedule as estates and trusts (see charts to the left and above)

Applies 1 if either parent ofthe child is alive at the close ofthe taxable year,the child does notfile a jointreturn forthe taxable year, and the child either(a) has not attained age 18 by close of the year, (b) has attained age 18 before the close of the year, butthe child’s earned income represents not more than one half of support needs and the child has not attained age 19 by the close ofthe year, or(c)the child is a full-time studentwho has not attained age 24 as of the close ofthe year and the child’s earned income represents not more than one half of support needs.

Preferential rates on long-term capital gains and qualified dividends are applicable; 3.8% federal NII tax is imposed separately on each child if modified AGI exceeds threshold amounts stated above.

Child Tax Credit

  • $2,000 per “qualifying child” (who has not attained age 17 during the year); phased out as income exceeds $400,000 (married/filing jointly) or $200,000 (all other); $1,400 per child is refundable
  • $500 nonrefundable credit for qualified dependents other than qualifying children (without limits)

Standard deductions

  Annual Additional age 65+ or blind
Married/Filing jointly and qualifying widow(er)s $24,400 $1,300
Single $12,200 $1,650

Health savings accounts contribution limits

Individual $3,500
Family $7,000

Catch-up contribution: Taxpayers who are 55 or older in 2019 may contribute an additional $1,000, or a total of $4,500 for individuals and $8,000 for families.

Deduction for mortgage interest

  • Deduction on interestfor qualifying mortgages up to $750,000 ($375,000 if married/filing separately); homes under agreement before 12/15/17 for purchase priorto 1/1/18 (provided purchase occurred by 4/1/18) grandfathered under previous $1,000,000 ($500,000 if married/filing separately)limits
  • Interest on home equity lines of credit (HELOC) deductible in certain caseswhere proceeds are utilized to acquire or improve a property

Deduction for state and local taxes

Individuals may deduct state and local income (or sales)taxes and real and personal property taxes up to $10,000 or($5,000 if married filing separately)in the aggregate

Maximum Qualified Long-Term-Care insurance premiums eligible for deduction

Age 40 or less >40, ≤50 0 >50, ≤60 >60, ≤70 Over 70
2019 $420 $790 $1,580 $4,220 $5,270

Qualified LTC contract per diem limit: $370

Traditional IRAs

Maximum annual contribution (must be under age 701/2)

  • Lesser of compensation or $6,000
  • Up to $6,000 contribution can also be made for nonworking spouse
  • Catch-up contributions (age 50 and over): $1,000

Traditional IRA deductibility table

Filing status Covered by employer’s retirement plan Modified AGI 2019 Modified AGI 2018 Deductibility
Single No
Yes
Yes
Yes
Any amount
$64,000 or less
$64,001–$73,999
$74,000 or more
Any amount
$63,000 or less
$63,001–$72,999
$73,000 or more
Full
Full
Partial
None
Married/Jointly Neither spouse covered Any amount Any amount Full
Married/Jointly Both spouses covered $103,000 or less
$103,001–$122,999
$123,000 or more
$101,000 or less
$101,001–$120,999
$121,000 or more
Full
Partial
None
Married/Jointly Yes, but spouse is not covered $103,000 or less
$103,001–$122,999
$123,000 or more
$101,000 or less
$101,001–$120,999
$121,000 or more
Full
Partial
None
Married/Jointly No, but spouse is covered $193,000 or less
$193,001–$202999
$203,000 or more
$189,000 or less
$189,001–$198,999
$199,000 or more
Full
Partial
None

Roth IRAs

Maximum annual contribution

  • Lesser of compensation or $6,000
  • Up to $6,000 contribution can also be made for nonworking spouse
  • Catch-up contributions (age 50 and over): $1,000
Contribution eligibility
Modified AGI is less than $122,000 (single) or $193,000 (married/filing jointly); phaseouts apply if modified AGI is $122,000–$136,999 (single) or $193,000–$202,999 (married/filing jointly)
Deductibility
Contributions to Roth IRAs are not deductible
Conversion eligibility
There is no income restriction on eligibility for a Roth IRA conversion

Base amount of modified AGI causing Social Security benefits to be taxable

  Up to 50% taxable Up to 85% taxable
Married/Filing jointly $32,001–$44,000 > $44,000
Single $25,001–$34,000 > $34,000

Maximum earnings before Social Security benefits are reduced

Under full retirement age ($1 withheld for every $2 above limit) $17,640
Full retirement age and over No limit*

*Interim annual limit of $46,920 applies for months prior to attaining full 1 retirement age during year individual reaches full retirement age ($1 withheld for every $3 above limit).

This information is general in nature and is not meant as tax or legal advice.Tax laws are subject to change. Please consult your legal or tax advisor.

Maximum compensation subject to FICA taxes

If gift/gross estate is over But not over The tax is Of the amount over
$0 $10,000 $0 + 18% $0
$10,000 $20,000 $1,800 + 20% $10,000
$20,000 $40,000 $3,800 + 22% $20,000
$40,000 $60,000 $8,200 + 24% $40,000
$60,000 $80,000 $13,000 + 26% $60,000
$80,000 $100,000 $18,200 + 28% $80,000
$100,000 $150,000 $23,800 + 30% $100,000
$150,000 $250,000 $38,800 + 32% $150,000
$250,000 $500,000 $70,800 + 34% $250,000
$500,000 $750,000 $155,800 + 37% $500,000
$750,000 $1,000,000 $248,300 + 39% $750,000
$1,000,000 $345,800 + 40% $1,000,000

*Annual 1 gift tax exclusion: individual, $15,000; married electing split gifts, $30,000

Combined lifetime gift tax and gross estate tax exemption: $11,400,000 GST tax exemption: $11,400,000

Higher education tax credits

Modified AGI phaseouts for American Opportunity Tax Credit

Married/Filing jointly $160,001–$179,999
Others $80,001–$89,999

Modified AGI phaseouts for Lifetime Learning Credit

Married/Filing jointly $116,001–$135,999
Single $58,001–$67,999

2019 AMT exemptions

Single $71,700
Married/Filing jointly and qualifying widow(er)s $111,700

Phases out beginning with alternative minimum taxable income over $1,020,600 (married/filing jointly and qualifying widow(er)s)) or $510,300 (single filers); AMT ordinary income rate increases from 26% to 28% for alternative minimum taxable income over $194,800 (married/filing jointly and qualifying widow(er)s, single, and estates and trusts)


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