Brackets, Credits, and more
Name the 7 Federal tax brackets
10% 12% 22% 24% 32% 35% 37%
What is the social security tax rate and wage base?
6.2% and $168,600
Roth IRA contribution limit for someone over 50 and their phaseout range if MFJ?
7,500 and 218,000 to 228,000
Annual gift tax exclusion per donee?
17,000
Do you have to take RMDs from a Roth IRA? How about a Roth 401k?
No and Yes
What are the capital gains tax rates?
0% 15% 20%
What is the Medicare payroll tax? At what income limit does it increase for MFJ and by how much?
1.45%; 0.9% at $250,000
401(k) contribution limit for someone over 50?
30,000
What is the lifetime gift and estate tax exclusion?
12.92 million
What is the PA inheritance taxes for 1. Spouse 2. Lineal discendent 3. Sibling 4. Other
0, 4.5, 12, 15
How much is the child tax credit? How much of the credit is refundable?
Extra Credit: What is the difference between a refundable vs non-refundable credit?
2,000 per qualifying child, 1,500
Refundable = can generate a refund
Non -Refundable = can only reduce tax liability to 0
What is the formula for calculating provisional income?
AGI + 1/2 SS Benefit + Non-Taxable Interest
SEP Contribution Limits?
At what age do I have to start taking RMDs? Approximately what % do I have to take from my retirement accounts?
73 and 4%
What is the income threshold to be considered a highly compensated employee?
$150,000
What is the standard deduction for someone filing HOH?
21,900
How much can I make before my SS benefits get reduced if I claimed them prior to FRA? What if I claimed them in the year I turn FRA?
22,320, 56,520
Can my wife contribute to a traditional IRA if she doesn’t have a 401k available to her from her employer but I do? We make $180,000 combined.
Yes, Roth phaseout limits apply
How much is the American Opportunity Credit?
2,500
What are the benefits of rolling my old 401(k) into an IRA? (Response must be comprehensive)
Investment options; Control tax withholding; Estate Planning Advantages; Potentially lower fee structure; Oversight by a Financial Professional
What is the PA income tax rate?
3.07%
What are the 3 taxable levels of SS Benefits and their income ranges for MFJ couple?
0% 0-32,000
50% 32,000-44,000
85% 44,000+
Simple IRA Contribution limit for someone over 50?
19,000
What is the Corporate Flat Tax Rate?
21%
How are distributions from a non-qualified annuity taxed? What if I annuitize it?
1. LIFO (ordinary income)
2. Pro Rata (portion of basis and ordinary income)