(MAGI mean modified adjusted gross income for that deduction.)
TCJA refers to the Tax Cuts and Jobs Act passed in 2017 which made major changes to many deductions/adjustments.
The 2025 tax bill "Public Law 119-21" made further changes, some retroactively for 2025 and others for future years.
| Maximum Salary Deferrals: | $24,500 for 401(k), 403(b), 501(c), 457 plans; / $17,000 for SIMPLE 'catch-up'contribution limits for age 50+*: additional $8,000 / $4,000 for SIMPLE *'super-catch up' amount for ages 60-63: additional $11,250 / $5,250 for SIMPLE New for 2026: If wages over 150K, any catch-up must be to a Roth plan, if offered. Maximum contribution including any employer-matching: $72,000
$3,400 for Health FSA |
| Self-Employed: | SEP-IRA: $72,000, with limitation of 20% adjusted net s/e income |
| Traditional IRA Contributions Limit: | $7,500 (up to amount of earned income for the year)
additional catch-up $1,100 for age 50+ |
Traditional IRA Deduction MAGI Phaseout: (when also eligible to contribute to a retirement plan at work) |
MFJ, QSS: $129,000-$149,000 S, HH: $81,000-$91,000 MFS: 0-$10,000 (living apart all year, see S) MFJ taxpayer when only other spouse covered by a plan: $242,000-$252,000 |
Roth IRA Contributions MAGI Phaseout: |
MFJ, QSS: $242,000-$252,000 S, HH: $153,000-$168,000 MFS: 0-$10,000 (living apart all year, see S) |
Retirement Savings Credit ('Saver's Credit') Maximum AGI Limit: |
MFJ: $80,500 HH: $60,375 S, QSS, MFS: $40,250 |
| Social Security: |
Before retirement age, can earn up to $24,480 without repaying benefits. Benefits reduced $1 for each $2 earned over limit Preceding months in year of reaching retirement age: $65,160. Benefits reduced $1 for each $3 earned over limit On/after retirement month, no earning limit. Maximum monthly benefits for 2025: $5,251 Earnings subject to SS tax: Employee: $184,500 (maximum $11,439 w/h) Household help: cash wages over $3,000 |
| Health Savings Account: | Maximum HSA contribution $4,400 individual coverage / $8,750 family coverage.
additional catch-up $1,000 for age 55+ |
| Child Tax Credit: | $2,200 per child under age 17, with up to $1700 potentially refundable. with phaseout starting at AGI of 400K MFJ, 200K others. $500 credit for other dependents. |
| Child and Dependent Care Expenses/Credit: | Allowed expenses for 20-50% credit on 3K for one child / 6K for two or more. (maximum credit rate increased from 35% to 50% for lower income taxpayers) Dependent care benefits set-aside 7.5K. Maximum credit $1,500 (one child) / $3,000 (two or more children) at 50% credit rate. |
| Educational Credit: (MFS ineligible) | American Opportunity Credit (aka Hope Credit): 100% of first $2,000, 25% of next $2,000 tuition (all 4 years college) MAGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ) Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+) MAGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ) |
| Student Loan Interest: (MFS ineligible) | Up to $2,500 MAGI phaseout: $85,000-$100,000 (individual); $175,000-$205,000 (MFJ) |
Earned Income Credit: (MFS ineligible) |
Maximum Earned income/MAGI limit: $19,540 (25-64 years old, no children), $51,593 (one child), $58,629 (two children), $62,974 (three children) limits increased for MFJ by $7,280 (no children) else $7,270 / $7,250 Maximum credit will range from $664 for no children up to $8,231 for three or more children. (disqualified if investment income over $12,200, any filing status) |
| Adoption Credit: | Up to $17,670 (MAGI phaseout $265,080-$305,080) Up to $5,120 can be refundable |
| 'Kiddie Tax' | Child under 18/full-time student under 24, with interest/dividends over $2,700
That portion in excess of $2,700 is taxed at the parents' marginal (top) rate. |
| Standard Mileage Rates: |
Business: 72.5¢ (Depreciation adjustment: 35¢) Charity: 14¢ Medical: 20.5¢ |
| Itemized Deduction phaseouts: | Back in effect, but only applies to the top tax bracket of 37% with the phaseout calculation reducing the total itemizing to a 35% tax benefit rather than a 37% tax benefit.
Charitable deductions: this is a separate limitation reducing the deduction by 0.5% AGI. (Similar to the 7.5% AGI threshold on medical/dental deductions, this is a 0.5% threshhold.) Gambling losses: limited to 90% of gambling winnings (previously could deduct 100% of losses up the amount of winnings). |
| Itemized state and local tax deductions ('SALT' limitation): | 40.4K. In suceeding years through 2029, the deduction will increase annually another 1%. Without future tax law changes, will revert back to a 10K cap. However, this deduction is reduced by 30% of MAGI exceeding 500K (250K MFS) though not reduced below 10K. |
| Seperate charity deduction: | Without having to itemize, a charitable deduction up to 1K or 2K (MFJ) for cash-type charities. Same charity rules apply: to 501(c3) organizations and a written receipt if donation over $250 given. This deduction available to those taking the standard deduction, not for those already itemizing, even if subject to the new 0.5% reduction. |
| Section 179 Expense: | total limit for tangible personal property placed in service: $2,560,000 phaseout starts at $4,090,000 placed in service |
| Depreciation Limit (with/without bonus depreciation): 2026 yet to be announced by IRS | 2025 limits were for passenger auto, first year business: $12,200 / $20,200
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| Capital Gain Tax: | Long-term (holding over a year): 0% for taxable income up to $49,450K (S,MFS), $66,200K (HH), $98,900K (MFJ, QSS) 15% for next range of taxable income to $545,500 (S), $579,600 (HH), $613,700 (MFJ,QSS) or $306,850 (MFS) 20% for taxable income over those amounts. |
| Gift Tax Exclusion/ Estate Exclusion: | $19,000 / $15M |
| Foreign Income Exclusion: | $132,900 |
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