Business Planning

Adoption Assistance Programs

Adoption assistance	2019	2020
Maximum amount that can be excluded from employee's gross income	$14,080	$14,300
Phaseout threshold amount	$211,160	$214,520
Completed phaseout amount after	$251,160	$254,520

Earnings subject to FICA taxes (taxable wage base)

FICA tax	2019	2020
Maximum annual earnings subject to Social Security taxes	$132,900	$137,700
Social Security and Medicare combined tax rate	15.30%¹	15.30%¹
OASDI portion (Social Security)	12.40%	12.40%
Hospital Insurance portion (Medicare)	2.90%¹	2.90%¹

¹ An additional Medicare (HI) employee contribution rate of 0.9% (for a total employee contribution of 2.35%, and a total combined Medicare contribution rate of 3.8%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). For married individuals filing joint returns, the additional 0.9% tax applies to the couples combined wages (to the extent the combined wages exceed $250,000).

Health insurance deduction for self-employed

Health insurance premiums	2019	2020
Deduction for health insurance premiums paid by self-employed persons	100%	100%

Qualified transportation fringe benefits

Qualified transportation fringe benefits	2019	2020
Commuter vehicles and transit pass monthly exclusion amount	$265	$270
Qualified parking monthly exclusion amount	$265	$270
Qualified bicycle commuting reimbursement fringe benefit (monthly amount)	N/A	N/A

Section 179 expensing

Section 179 expensing	2019	2020
Maximum amount that may be deducted under IRC Section 179	$1,020,000	$1,040,000
Deduction reduced by the amount by which the cost of §179 property placed in service during the year exceeds this amount	$2,550,000	$2,590,000

Small business tax credit for providing health-care coverage

Amount of credit	2019	2020
Maximum credit percentage	50%	50%

Partial credit	2019	2020
Number of full-time equivalent employees (FTEs) fewer than:	25	25
Maximum average annual wages less than:	$54,200	$55,200

Full credit	2019	2020
Number of full-time equivalent employees (FTEs) no more than:	10	10
Maximum average annual wages less than or equal to:	$27,100	$27,600

Special additional first-year depreciation allowance

Bonus depreciation	2019	2020
"Bonus" depreciation for qualified property acquired and placed in service during specified time periods	100%	100%

Standard mileage rate (per mile)

Business use of auto	2019	2020
Use of auto for business purposes	$0.58	$0.575

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The information contained herein is based on sources believed to be reliable, but its accuracy cannot be guaranteed. The articles, information, calculators, and opinions presented herein are for general information only and are not intended to provide specific advice or recommendations for any individual. New Capital Management does not provide tax, accounting, or legal advice. All decisions regarding the tax or legal implications of your investments and finances should be made with your tax or legal advisor. New Capital Management is not a bank, mortgage lender, or broker. Nothing herein should be construed as an offer or commitment to lend. Any calculations are provided as educational tools, are hypothetical in nature, depend wholly on information you provide, do not assume the effects of all pertinent factors, and are not intended to provide investment advice or serve as a financial plan.

This communication is strictly intended for individuals residing in the state(s) of TX. No offers may be made or accepted from any resident outside the specific states referenced.