Michael Lodge, NCPM, CRTP: Every year there is an adjustment on certain issues where the IRS adjust rates based on inflation.
The Standard Deduction -
2020 2021
Married filing jointly $24,800 $25,100
Single, MFS $12,400 $12,550
Head of Households $18,650 $18,800
Standard Mileage Rates - The standard mileage rates for the use of a care (also vans, pickups or panel trucks) has adjusted. In 2020 it was 57.5 cents per mile driven for business use, in 2021 it has been lowered to 56 cents per mile driven for business use
17 centers in 2020 per mile driven for medical or moving purposes has been adjusted downward to 16 cents per mile driven for medical or moving purposes
In 2020 it was 14 cents per mile driven in service of charitable organization, in 2021 it has stayed the same at 14 cents.
CONTRIBUTION TO RETIREMENT ACCOUNTS - Contribution limit for employees who participate in 3401(k), 403(b), most 457 plans, and the federal government's thrift savings plan has changed. In 2020 it was $19,500 and for tax year 2021 it remains the same. No inflation adjustment
Catch-up contributions limit for employees aged 50 and over who participate in a 401(k), 403(b), most 457 plans and the federal government's Thrift Savings plan has not changed. The contributions remain at $6,500.
Limit on annual contributions to an IRA has not changed, it remains at $6,500
Catch-up contribution limit for individuals aged 50 and over (IRA) remains at $1,000 - no change.
