PARTNER FOR
With over 102 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 the following six essential areas: C – Community & Economy H – Health & Wellness A – Arts & Culture N – Natural Environment G – Government & Civics E – Education Through common data set as mapped out in the framework, HCF hopes to shine light on these initiatives, encourage alignment, and create partnerships to drive greater impact. Let us help your clients reach their giving goals, ensuring that their generosity is transformed to create a better island home now and for future generations. 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 Hawai‘i Island Hilo Kamuela Kaua‘i Maui
808-537-6333 808-935-1206 808-885-2174 808-245-4585 808-242-6184
HawaiiCommunityFoundation.org
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.