2020 Tax Reference Guide

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Tax Reference Guide 2020

2020 Tax Reference Guide Federal Estate, Gift & GST Taxes

Federal Income Taxes

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

$11.58 million

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

$11.58 million Income Tax Rate Range:

Top Federal Estate/Gift Tax Rate Portability?

40% YES, for Estate & Gift Tax Exclusion Amount

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

Top Income Tax Rate: “High Income Taxpayers” (taxable income over $518,400 individuals; $622,050 joint)

37% (over $12,950) YES, for gifts at death

State Death Tax Deduction?

10 -35%

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

$15,000

Annual Exclusion – Non-U.S. Citizen Spouse (indexed)

$157,000

$441,450 single $469,050 HOH $496,600 Joint (1/2 for MFS) $13,150 Estates & Trusts

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

$40,000 single $53,600 HOH $80,000 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?

20% 2.25% x inclusion ratio

Civil Union Marital Deduction?

YES

Gift 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 Deduction

AMT Exemption Amount (Indexed)

YES, for Estate Tax Exclusion Amount

Top Income Tax Rate

Itemized Deduction Limitations: Mortgage Interest (debt on or after 12/15/17) Charitable Contributions of Cash State & Local Taxes

$5.49 million

Top Estate Tax Rate

0.5%

20% , if taxable income is less than $163,300 individuals; $326,600 joint. Otherwise, limited

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

YES

Annual Exclusion (indexed)

IRA & Pension Limits 37%

Personal Exemption

Anyone under the 15% breakpoint Interest on $750,000 60% of AGI $10,000

$19,500

Catch-up Contribution for Employees 50 and Older

$7,000

IRA Annual Contribution Limit

$6,000

IRA Deduction Phase-Out (Based on MAGI for Taxpayers Covered by Workplace Retirement Plan)

$65,000 - $75,000 single, HOH $104,000 - $124,000 Joint

Roth IRA Deduction PhaseOut (Based on MAGI)

$124,000 - $139,000 single, HOH $196,000 - $206,000 Joint

AGI Limit for Retirement Savings Contribution Credit

$32,500 single, MFS $48,750 HOH $65,000 Joint

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

$100,000

Hawai‘i Community Foundation Charitable Fund Types

$12,400 single, MFS $18,650 HOH $24,800 Joint

Donor Advised Fund/Signature Fund – A flexible, tax efficient, and personalized way to receive an immediate tax benefit and support a donor’s favorite charity or charities.

$72,900 single, HOH $113,400 Joint (1/2 for MFS)

Designated Fund – For donors who want to receive an immediate tax benefit and support their favorite charity or charities, identified at the time the fund is established.

None, suspended

Corporation Tax Rate

Annual Contribution Limits 401(k), 403(b), most 457 Plans and Federal Government Thrift Savings Plan

21%

Health Care Taxes

Field of Interest Fund – For donors who want to support a broad charitable purpose or category of interest such as health, arts & culture, education or a geographical area such as Waipahu, Kohala, Kaua‘i, or Windward O‘ahu.

Health Care Surtax: $200,000 of MAGI for individuals; $250,000 for Joint (1/2 for MFS); $12,950 for trusts

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

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 collaborative partnerships among donors to make the greatest impact.

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

0.9%

Scholarship Fund – Post-secondary education support to promising and deserving students by assisting them with the cost of their education.

10% of AGI

Charitable Gift Annuity (CGA) – A CGA to the Hawai‘i Community Foundation is a simple way for a donor to make a gift to charity, receive an immediate tax benefit, and provide the donor and/or a loved one a fixed annuity payment for life.

Medical Expense Deduction Limitation

The information in this handout is provided “as is” and is for general educational purposes only. Hawai‘i Community Foundation, their respective employees, and agents specifically disclaim any and all liability and loss of risk incurred as a result of the use and application, either directly or indirectly, of the material contained in this educational handout, whether or not negligently provided.