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19755 East Pikes Peak Ave, Suite 101, Parker, CO 80138

19755 East Pikes Peak Ave, Suite 101, Parker, CO 80138

Tax Tidbits

FACTOIDS FOR 2018 AND 2019

INCLUDING MILEAGE RATES, IRA LIMITS,  QUALIFIED PLAN LIMITS, ESTATE TAX LIMITS,

GIFTING LIMITS & FOREIGN EARNED INCOME LIMITS

STANDARD MILEAGE RATES

For 2018, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) are:

  • 54.5 cents per mile for business miles driven
  • 18 cents per mile driven for medical/ moving purposes
  • 14 cents per mile driven in service of charitable organizations – it takes an act of Congress to change charitable mileage…so we are pretty sure this won’t change anytime soon

For 2019

  • 58 cents per mile for business miles driven
  • 20 cents per mile driven for medical/moving purposes
  • 14 cents per mile driven in service of charitable

After the passage of the Tax Cuts and Jobs Act, miscellaneous itemized deductions are suspended and the standard rates can not be used for unreimbursed employee travel expenses.

TRADITIONAL AND ROTH IRA CONTRIBUTION LIMITS—FUND BY APRIL 15, 2019!

Tax Year Under age 50 Age 50 or Older
2018 $5,500 $6,500
2019 $6,000 $7,000

THERE ARE SOME IMPORTANT RESTRICTIONS – GIVE US A CALL BEFORE FUNDING

FROM SOCIAL SECURITY ADMINISTRATION: https://www.ssa.gov/news/press/factsheets/colafacts2019.pdf

Retirement Earning Text
Exempt Amounts:
2018 2019

Under full retirement age
NOTE: One dollar in benefits will
be withheld for every $2 in earning
above the limit.

$17,040/yr $17,640/yr

There is no limit on earnings beginning the month an individual attains full retirement age.  See http://www.socialsecurity.gov/retire2/agereduction.htm

Remember – it is NOT 65 for everyone!!

Maximum Earning Taxable: 2018 2019

Social Security (OASDI only)

$128,400 $132,900

NEWS ON THE ESTATE FRONT:

Estate Planning 2018 2019
Estate Tax Exclusion $11.18 Million $11.18 Million
Gift Tax Exclusion $11.18 Million $11.18 Million
Annual Gifting – to anyone $15,000 $15,000

QUALIFIED PLAN LIMITS

2018 2019
Elective Deferrals $18,500 $19,000
Catch-Up Contributions $6,000 $6,000
Defined Benefit Plan Annual Benefit Limit $220,000 $225,000
Defined Contribution 415 limit (eg 401k, SEP) $55,000 $56,000

FOREIGN EARNED INCOME EXCLUSION:

  • 2018                $103,900
  • 2019                $105,900