Navigating the Digital Frontier: Unveiling the Power of Online Banking

"Standard Deduction."

In 2021, a number of tax provisions are affected by inflation adjustments, including Health Savings Accounts, retirement contribution limits, and the foreign earned income exclusion. The tax rate structure, which ranges from 10 to 37 percent, remains similar to 2020; however, the tax-bracket thresholds increase for each filing status. Standard deductions also rise, and as a reminder, personal exemptions have been eliminated through tax year 2025.

In 2021, the standard deduction increases to $12,550 for individuals (up from $12,400 in 2020) and to $25,100 for married couples (up from $24,800 in 2020).

Alternative Minimum Tax (AMT): 

• In 2021, AMT exemption amounts increase to $73,600 for individuals (up from $72,900 in 2020) and $114,600 for married couples filing jointly (up from $113,400 in 2020). Also, the phaseout threshold increases to $523,600 ($1,047,200 for married filing jointly). Both the exemption and threshold amounts are indexed annually for inflation.

  Kiddie Tax”: 

  Beyond Transactions: Unleashing the Full Potential of Online Banking Solutions

  For taxable years beginning in 2021, the amount that can be used to reduce the net unearned income reported on the child’s return that is subject to the “kiddie tax,” is $1,100. The same $1,100 amount is used to determine whether a parent may elect to include a child’s gross income in the parent’s gross income and to calculate the “kiddie tax.” For example, one of the requirements for the parental election is that a child’s gross income for 2021 must be more than $1,100 but less than $11,000.
  
  

  
  

Discover a holistic perspective on online banking excellence, going beyond transactions to reveal how this powerful tool can seamlessly integrate into your daily life, offering a comprehensive approach to financial well-being.