2021 Tax Brackets and Other Tax Changes
December 15, 2020
On October 26, 2020, the Internal Revenue Service published the 2021 tax rates, allowances, and thresholds applicable for the tax law provisions that are adjusted annually for inflation.
For 2021 returns filed by individual taxpayers in 2022, the top tax rate will continue to be 37% but the standard deduction, tax bracket ranges, other deductions, and phase-outs will increase.
- Tax rates remain constant for 2021
- Tax brackets, phase-outs for deductions and credits, thresholds, and ceilings increase
- Contribution levels for retirement plans are unchanged
- CARES Act RMD waiver, distribution and loan rules lapse after 2020
Read this article for details about changes in the standard deduction, tax brackets, capital gains, tax credits, the Alternative Minimum Tax (AMT), retirement plans, and 2020 retirement plan provisions that disappear in 2021.
Stout Bowman regularly posts important and interesting information on our blog. Current topics include credit/debit/loans, estate planning, insurance, investing, Medicare, retirement, Social Security and taxes, as well as general information that we think you might find of interest. 
We have been publishing an email newsletter for our clients and friends since 2016. Links to all of the newsletters can be found on our newsletter page, with the most recent listed first. We try to keep our emails short, so there are typically only three articles in each one, most of which link to other articles in the financial and mainstream press. 
We also have a page on our site for the latest news about our company, notice of any upcoming events, and a market commentary to discuss what our advisors and other financial industry experts conclude about the previous investment performance and what we might expect the markets and the economy will do in the coming months. 
Many news organizations offer what is called a Rich Site Summary (RSS) feed, a listing of the latest changes to their site's content. We have subscribed to several of these news feeds and present a list of their latest ten articles on a page on this website to save our clients the hassle of going to multiple websites just to see what is available. Currently, we subscribe to 
At Stout Bowman every investment client is first a financial planning client; it's important to go through that process before we make any professional investment recommendations. Therefore, we strive to make financial planning understandable and comfortable every step of the way. One way to do that is to provide our clients access to financial education resources. To that end, we have subscribed to educational websites to receive their news feeds and present a list of their latest ten articles on a page on this website. Currently, we subscribe to