Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087
650-917-3400
garth@honuwealth.com
www.HonuWealth.com
 
 




2019 Key Numbers

 

Individual Income Tax Planning

Adoption credit

Adoption credit20182019
Maximum credit$13,810 $14,080
Phaseout threshold amount$207,140 $211,160
Completed phaseout amount after$247,140 $251,160

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount20182019
Married filing jointly or surviving spouse$109,400 $111,700
Single or head of household$70,300$71,700
Married filing separately$54,700$55,850
AMT income exemption phaseout threshold20182019
Married filing jointly or surviving spouse$1,000,000 $1,020,600
Single or head of household$500,000$510,300
Married filing separately$500,000 $510,300
AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)20182019
All taxpayers except married filing separately$191,100 $194,800
Married filing separately$95,550 $97,400

Charitable deductions

Use of auto20182019
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20182019
Low-cost article (re: unrelated business income)$10.80$11.10
Gifts to donor in return for contribution20182019
Token gift maximum cost1$10.80$11.10
Minimum contribution amount1$54 $55.50
2% threshold amount2$108 $111

1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum

2 Charitable contribution is fully deductible if the benefit received by the donor doesn't exceed the lesser of the threshold amount or 2% of the amount of the contribution

Child tax credit

Amount of credit20182019
Maximum credit per qualifying child$2,000$2,000
Nonrefundable credit for dependents who are not qualifying children$500$500
Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20182019
Single$200,000$200,000
Married Filing Jointly$400,000$400,000
Married Filing Separately$200,000$200,000
Refundability -- up to specified percentage of earned income in excess of specified amount20182019
Percentage15%15%
Amount$2,500$2,500
Maximum refundable amount of credit$1,400$1,400

Classroom expenses of elementary and secondary school teachers

Classroom expense deduction20182019
Maximum above-the-line deduction$250$250

Earned income tax credit (EITC)

Investment income limit20182019
Excessive investment income limit ("disqualified income limit")$3,500 $3,600
Maximum amount of EITC per number of children20182019
0 children$519 $529
1 child$3,461$3,526
2 children$5,716$5,828
3 or more children$6,431$6,557
Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)20182019
0 children$6,780 $6,920
1 child$10,180$10,370
2 or more children$14,290$14,570
Threshold phaseout amount for joint filers per number of children20182019
0 children$14,170 $14,450
1 child$24,350 $24,820
2 children$24,350 $24,820
3 or more children$24,350 $24,820
Threshold phaseout amount for other filers per number of children20182019
0 children$8,490 $8,650
1 child$18,660 $19,030
2 children$18,660 $19,030
3 or more children$18,660 $19,030
Completed phaseout amount for joint filers per number of children20182019
0 children$20,950 $21,370
1 child$46,010 $46,884
2 children$51,492 $52,493
3 or more children$54,884$55,952
Completed phaseout amount for other filers per number of children20182019
0 children$15,270 $15,570
1 child$40,320 $41,094
2 children$45,802$46,703
3 or more children$49,194$50,162

Expatriation

Covered expatriate20182019
An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)$165,000 $168,000
IRC §877A(3) exclusion amount$711,000$725,000

Foreign earned income

Amount excluded from income20182019
Exclusion amount$103,900 $105,900

Itemized deductions

Phaseout threshold20182019
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A

Kiddie tax

Unearned income limit20182019
Amount exempt from tax$1,050 $1,100
Additional amount taxed at child's rate$1,050 $1,100
Unearned income over this amount taxed at trust and estate income tax rates$2,100 $2,200
Parent's election20182019
Election to include child's income on parent's return -- child's gross income requirement$1,050 - $10,500 $1,100 - $11,000
AMT20182019
AMT exemption for child subject to kiddie taxLesser of $7,600 + child's earned income or $70,300 Lesser of $7,750 + child's earned income or $71,700

Medicare tax (additional payroll tax and unearned income contribution tax)

Payroll tax20182019
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20182019
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20182019
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20182019
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20182019
Domestic employee coverage threshold$2,100$2,100

Personal exemption amount

Amount20182019
Personal exemption amountN/A N/A
Married filing jointly20182019
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Head of household20182019
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Unmarried20182019
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Married filing separately20182019
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/AN/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20182019
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20182019
Joint Return$0 - $38,000 $0 - $38,500
Head of Household$0 - $28,500 $0 - $28,875
Other$0 - $19,000 $0 - $19,250
Applicable percentage of 20% applies to AGI20182019
Joint Return$38,001 - $41,000 $38,501 - $41,500
Head of Household$28,501 - $30,750 $28,876 - $31,125
Other$19,001 - $20,500 $19,251 - $20,750
Applicable percentage of 10% applies to AGI20182019
Joint Return$41,001 - $63,000 $41,501 - $64,000
Head of Household$30,751 - $47,250 $31,126 - $48,000
Other$20,501 - $31,500 $20,751 - $32,000
Applicable percentage of 0% applies to AGI20182019
Joint ReturnOver $63,000 Over $64,000
Head of HouseholdOver $47,250 Over $48,000
OtherOver $31,500 Over $32,000

Standard deductions

Amounts20182019
Married filing jointly or surviving spouse$24,000 $24,400
Head of household$18,000 $18,350
Unmarried$12,000$12,200
Married filing separately$12,000$12,200
Dependent--Standard deduction cannot exceed the greater of:$1,050 or $350 + earned income $1,100 or $350 + earned income
Additional deduction for aged or blind (single or head of household)$1,600 $1,650
Additional deduction for aged or blind (all other filing statuses)$1,300$1,300

Standard mileage rates

Applicable rates 20182019
Use of auto for business purposes (cents per mile)$0.545TBD
Use of auto for medical purposes (cents per mile)$0.18TBD
Use of auto for moving purposes (cents per mile)$0.18TBD


This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.