facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause
%POST_TITLE% Thumbnail

Business Tax Planning - 2020 Key Numbers

Adoption Assistance Programs

Adoption assistance20192020
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)

FICA tax20192020
Maximum annual earnings subject to Social Security taxes$132,900$137,700
Social Security and Medicare combined tax rate15.30%115.30%1
OASDI portion (Social Security)12.40%12.40%
Hospital Insurance portion (Medicare)2.90%12.90%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 premiums20192020
Deduction for health insurance premiums paid by self-employed persons100%100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits20192020
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/AN/A

Section 179 expensing

Section 179 expensing20192020
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 credit20192020
Maximum credit percentage50%50%
Partial credit20192020
Number of full-time equivalent employees (FTEs) fewer than:2525
Maximum average annual wages less than:$54,200$55,200
Full credit20192020
Number of full-time equivalent employees (FTEs) no more than:1010
Maximum average annual wages less than or equal to:$27,100$27,600

Special additional first-year depreciation allowance

Bonus depreciation20192020
"Bonus" depreciation for qualified property acquired and placed in service during specified time periods100%100%

Standard mileage rate (per mile)

Business use of auto20192020
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.