Tax Reference Guide 2019

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Tax Reference Guide 2019

2019 Tax Reference Guide Federal Estate, Gi & GST Taxes

Federal Income Taxes

Estate & Gi Tax Exclusion Amount for U.S. Individual (indexed)

$11.4 million

GST Tax Exclusion Amount for U.S. Individual (indexed)

$11.4 million Top Income Tax Rate: Everyone Else

Top Federal Estate/Gi Tax Rate Portability?

40% YES, for Estate & Gi Tax Exclusion Amount

Top Trust & Estate Income Tax Rate Basis Step‐Up?

Top Income Tax Rate: “High Income Taxpayers” (taxable income over $510,300 individuals; $612,350 joint)

37% (over $12,750) YES, for gi s at death

State Death Tax Deduc on?

$15,000

Annual Exclusion – Non‐U.S. Ci zen Spouse (indexed)

$155,000

20% , if taxable income is less than $160,700 individuals; $321,400 joint. Otherwise, limited

20% LTCG & Dividend Rate: On LTCG and qualified dividends which results in taxable income over...

$434,550 single $461,700 HOH $488,850 Joint (1/2 for MFS) $12,950 Estates & Trusts

15% LTCG & Dividend Rate: On LTCG and qualified dividends which results in taxable income over...

$39,375 single $52,750 HOH $78,750 Joint (1/2 for MFS) $2,650 Estates & Trusts

0% LTCG & Dividend Rate

Hawai‘i Estate & GST Taxes Time to File

Same day as federal return

Filing Extension Payment Extension

Granted if federal filing extended Granted if federal payment extended

Estate Tax Exclusion Amount (subject to change)

Applicable GST Tax Rate Portability?

15.7% 2.25% x inclusion ra o

Civil Union Marital Deduc on?

YES

Gi Tax?

NO

Hawai‘i Income & General Excise Taxes

LTCG Rate

11% 7.25%

Top Dividend Rate

11%

General Excise Tax

4%

O‘ahu County Surcharge

Standard Deduc on

AMT Exemp on Amount (Indexed)

YES, for Estate Tax Exclusion Amount

Top Income Tax Rate

Itemized Deduc on Limita ons: Mortgage Interest (debt on or a er 12/15/17) Charitable Contribu ons of Cash State & Local Taxes

$5.49 million

Top Estate Tax Rate

0.5%

10 ‐35%

Tax Deduc on on S Corp, Partnerships, LLCs and Sole Prop “qualified business income” (QBI)

YES

Annual Exclusion (indexed)

IRA & Pension Limits 37%

Personal Exemp on

Anyone under the 15% breakpoint

Interest on $750,000 60% of AGI $10,000

Catch‐up Contribu on for Employees 50 and Older

$7,000

IRA Annual Contribu on Limit

$6,000

IRA Deduc on Phase‐Out (Based on MAGI for Taxpayers Covered by Workplace Re rement Plan)

$64,000 ‐ $74,000 single, HOH $103,000 ‐ $123,000 Joint

Roth IRA Deduc on Phase‐ Out (Based on MAGI)

$122,000 ‐ $137,000 single, HOH $193,000 ‐ $203,000 Joint

AGI Limit for Re rement Savings Contribu on Credit

$32,000 single, MFS $48,000 HOH $64,000 Joint

Tax‐Free Charitable Roll‐over from IRA for Individuals 70½ and older

$100,000

Hawai‘i Community Founda on Charitable Fund Types Donor Advised Fund/Signature Fund – Allows a donor (or someone the donor selects) the right to recommend grants from the fund over me.

An inexpensive alterna ve to private founda ons.

$71,700 single, HOH $111,700 Joint (1/2 for MFS)

Designated Fund – For donors who want to support a specific charitable organiza on while ensuring the funds are u lized consistent with the donor’s wishes.

21%

Health Care Taxes Health Care Surtax: $200,000 of MAGI for individuals; $250,000 for Joint (1/2 for MFS); $12,750 for trusts

3.8% on the lesser of (1) net investment income; or (2) the excess of MAGI over the threshold amount.

Addi onal Medicare Surtax: On wages in excess of $200,000 single, HOH; $250,000 Joint (1/2 for MFS); not indexed

0.9%

Medical Expense Deduc on Limita on

$19,000

$12,200 single, MFS $18,350 HOH $24,400 Joint

None, suspended

Corpora on Tax Rate

Annual Contribu on Limits 401(k), 403(b), most 457 Plans and Federal Government Thri Savings Plan

7.5% of AGI

The informa on in this handout is provided “as is” and is for general educa onal purposes only. Hawai‘i Community Founda on, their respec ve employees, and agents specifically disclaim any and all liability and loss of risk incurred as a result of the use and applica on, either directly or indirectly, of the material contained in this educa onal handout, whether or not negligently provided.

Field of Interest Fund – Allows a donor to define one or more areas of charitable concern. The field may be as broad as “Maui County”, “girls & women”, “the environment”, or “health and welfare”, or as specific as “early childhood literacy”.

Catalyst Fund – This fund enables the development of strategies to grapple with important local challenges, strengthen leadership within Hawai‘i’s nonprofit community, and promote collabora ve partnerships among donors to make the greatest impact.

Scholarship Fund – Provides post‐secondary educa on scholarships to individual recipients. Grants may be awarded to the individuals or they may be awarded to educa onal ins tu ons.

Charitable Gi Annuity (CGA) – A gi through a CGA to the Hawai‘i Community Founda on provides the donor and/or a loved one a fixed payment for life. At the death of the last annuitant, the remainder establishes a fund to fulfill the donor’s charitable wishes.