Adoption Assistance Programs
|Maximum amount that can be excluded from employee's gross income||$14,080||$14,300|
|Phaseout threshold amount||$211,160||$214,520|
|Completed phaseout amount after||$251,160||$254,520|
Earnings subject to FICA taxes (taxable wage base)
|Maximum annual earnings subject to Social Security taxes||$132,900||$137,700|
|Social Security and Medicare combined tax rate||15.30%1||15.30%1|
|OASDI portion (Social Security)||12.40%||12.40%|
|Hospital Insurance portion (Medicare)||2.90%1||2.90%1|
1 An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).
Health insurance deduction for self-employed
|Health insurance premiums||2019||2020|
|Deduction for health insurance premiums paid by self-employed persons||100%||100%|
Qualified transportation fringe benefits
|Qualified transportation fringe benefits||2019||2020|
|Commuter vehicles and transit pass monthly exclusion amount||$265||$270|
|Qualified parking monthly exclusion amount||$265||$270|
|Qualified bicycle commuting reimbursement fringe benefit (monthly amount)||N/A||N/A|
Section 179 expensing
|Section 179 expensing||2019||2020|
|Maximum amount that may be deducted under IRC Section 179||$1,020,000||$1,040,000|
|Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount||$2,550,000||$2,590,000|
Small business tax credit for providing health-care coverage
|Amount of credit||2019||2020|
|Maximum credit percentage||50%||50%|
|Number of full-time equivalent employees (FTEs) fewer than:||25||25|
|Maximum average annual wages less than:||$54,200||$55,200|
|Number of full-time equivalent employees (FTEs) no more than:||10||10|
|Maximum average annual wages less than or equal to:||$27,100||$27,600|
Special additional first-year depreciation allowance
|"Bonus" depreciation for qualified property acquired and placed in service during specified time periods||100%||100%|
Standard mileage rate (per mile)
|Business use of auto||2019||2020|
|Use of auto for business purposes||$0.58||$0.575|
Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Prepared by Broadridge Advisor Solutions Copyright 2020.