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MUSICAL CHAIRS & 2021 TAX RATES
Congress is still hammering out provisions of the Build Back Better plan. Some provisions have been modified and other provisions have been removed. The bank reporting of deposits of $600 or more have been changed to $10,000 or more (contacting Congress DOES change things?!). So looking to those things that are already determined . . . 2021 Tax rates. Note: Taxable income in these tables is total taxable income AFTER subtracting the Standard Deduction for your filing status. . .
Section 1(j)(2)(A)—Married Individuals Filing Joint Returns and Surviving Spouses
If Taxable Income Is: The Tax Is:
Not over $19,900 10% of the taxable income
Over $19,900 but not over $81,050 $1,990 plus 12% of the excess over $19,900
Over $81,050 but not over $172,750 $9,328 plus 22% of the excess over $81,050
Over $172,750 but not over $329,850 $29,502 plus 24% of the excess over $172,750
Over $329,850 but not over $418,850 $67,206 plus 32% of the excess over $329,850
Over $418,850 but not over $628,300 $95,686 plus 35% of the excess over $418,850
Over $628,300 $168,993.50 plus 37% of the excess over $628,300
Section 1(j)(2)(B)—Heads of Households
If Taxable Income Is: The Tax Is:
Not over $14,200 10% of the taxable income
Over $14,200 but not over $54,200 $1,420 plus 12% of the excess over $14,200
Over $54,200 but not over $86,350 $6,220 plus 22% of the excess over $54,200
Over $86,350 but not over $164,900 $13,293 plus 24% of the excess over $86,350
Over $164,900 but not over $209,400 $32,145 plus 32% of the excess over $164,900
Over $209,400 but not over $523,600 $46,385 plus 35% of the excess over $209,400
Over $523,600 $156,355 plus 37% of the excess over $523,600
Section 1(j)(2)(C)—Unmarried Individuals (Other Than Surviving Spouses and Heads of Households)
If Taxable Income Is: The Tax Is:
Not over $9,950 10% of the taxable income
Over $9,950 but not over $40,525 $995 plus 12% of the excess over $9,950
Over $40,525 but not over $86,375 $4,664 plus 22% of the excess over $40,525
Over $86,375 but not over $164,925 $14,751 plus 24% of the excess over $86,375
Over $164,925 but not over $209,425 $33,603 plus 32% of the excess over $164,925
Over $209,425 but not over $523,600 $47,843 plus 35% of the excess over $209,425
Over $523,600 $157,804.25 plus 37% of the excess over $523,600
And because you asked, 2021 Standard Deduction for:
Married Filing Joint $25,100
Single $12,550
Head of Household $18,800
Married Filing Separately $12,550
Additional Deduction for Elderly or Blind added to Married Deduction $1,350.00
Additional Deduction for Elderly or Blind–added to Single or Married Filing Separately $1,700.00
Courtesy of 2021 OSU Extension Tax Handbook. . . .