2021 Standard Mileage Rates

Business..................58.5 cents per mile                                                                              Depreciation.........................27 cents per mile

Charitable...............14    cents per mile                                                                              Medical and moving............ 18 cents per mile

2021 Earned Income Credit - Maximum Income Limits

                                                                                                                                          No Children       1 Child       2 Children      3 Children

Married Filing Joint............................................................................................................$27,380             $48,108         $53,865         57,414

Single, Head of Household, Qualifying Widow(er)............................................................$21,430             $42,158         $47,915         51,464

Investment Income Limit:  $3,800

Maximum Credit Amounts (the maximum amount of credit you can claim)

No qualifying children: $1,502

1 qualifying child:  $3,618

2 qualifying children:  $5,980

3 or more qualifying children:  $6,728

Taxpayers claiming the EITC who file Married Filing Separately must meet the eligibility requireents under the special rule in the

American Rescue Plan Act (ARPA) of 2021.

2021 IRA Contribution limit

  • $6,000 ($7,000 if you're age 50 or older), or

  • If less, your taxable compensation for the year

Student Loan Interest

Student loan interest is interest you paid during the year on a qualified student loan. It includes both required and voluntarily pre-paid interest payments. You may deduct the lesser of $2,500 or the amount of interest you actually paid during the year. The deduction is gradually reduced and eventually eliminated by phaseout when your modified adjusted gross income (MAGI) amount reaches the annual limit for your filing status.

You claim this deduction as an adjustment to income, so you don't need to itemize your deductions.

You can claim the deduction if all of the following apply:

  • You paid interest on a qualified student loan in tax year 2019;

  • You're legally obligated to pay interest on a qualified student loan;

  • Your filing status isn't married filing separately;

  • Your MAGI is less than a specified amount which is set annually; and

  • You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return.