PARTNER FOR
With over 100 years of community service and knowledge, HCF seeks to mobilize large-scale change for people and communities in Hawai‘i. To achieve this goal, HCF created the CHANGE Framework that zeroes in on six essential areas that constitute the overall well-being in our state. C – Community & Economy H – Health & Wellness A – Arts & Culture N – Natural Environment G – Government & Civics E – Education CHANGE is informed by data and works to identify gaps and opportunities so that partners can create shared goals for greater impact. Let us help you help your clients reach their giving goals, ensuring that their generosity is transformed into lasting change. www.hawaiicommunityfoundation.org/change
Amplify the power of giving
Contact us to learn more about how we can help you and your clients create the greatest impact with their charitable giving:
O‘ahu 808‐537‐6333 Hawai‘i Island Hilo 808‐935‐1206 Kamuela 808‐885‐2174 Kaua‘i 808‐245‐4585 Maui 808‐242‐6184 HawaiiCommunityFounda on.org
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.