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/ Medicare

 2019

 2018

Social Security Tax Wage Base $132,900 $128,400
Medicare Tax Wage Base No limit No limit
Employeeportion of Social Security 6.2% 6.2%
Employee portion of Medicare 1.45% 1.45%

 

Individual Retirement Accounts

 

2019

 

2018

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 Limits

 

2019

 

2018

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 Deductions

 

2019

 

2018

Business mileage, per mile 58 cents 54.5 cents
Charitable mileage, per mile 14 cents 14 cents
Medical and moving, per mile 20 cents 18 cents

 

Business Equipment

 

2019

 

2018

Maximum Section 179 deduction $1,020,000 $1,000,000
Phase out for Section 179 $2.55 million $2.5 million

 

Transportation Fringe Benefit Exclusion

 

2019

 

2018

Monthly commuter highway vehicle and transit pass $  265 $  260
Monthly qualified parking $  265 $  260

 

Standard Deduction

 

2019

 

2018

Married filing jointly $24,400 $24,000
Single (and married filing separately) $12,200 $12,000
Heads of Household $18,350 $18,000

 

Domestic Employees

 

2019

 

2018 

Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $ 2,100 $ 2,100

 

Kiddie Tax

 2019

2018 

Net unearned income not subject to the “Kiddie Tax” $ 2,200 $ 2,100

 

Estate Tax

 

2019

 

2018 

Federal estate tax exemption $11.4 million
$11.18 million
Maximum estate tax rate 40% 40%

 

Annual Gift Exclusion

 

2019

 

2018 

Amount you can give each recipient $15,000 $15,000
   

 

Categories: February 2019, Monthly Bulletins
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