Pay Now

2020 Pocket Tax Guide

The Original – Often Imitated, But Never Duplicated
Handy Reference Table

Social Security
Wage Base
FICA Base137,700$132,900
Medicare BaseNo LimitNo Limit
Tax Rates
FICA (employer/employee)6.20%6.20%
Medicare (employer/employee)1.45%1.45%
Self-employed (combined)15.30%15.30%
Maximum FICA tax$8,537$8,240
Maximum Medicare taxNo LimitNo Limit
Maximum annual earnings
before benefits are withheld

Max Earnings - Under Full Retirement Age$18,240$17,640
Max Earnings - Year of Full Retirement Age$48,600$46,920
Max Earnings - Over Full Retirement AgeNo LimitNo Limit
Estate Tax Exemption$11.58 MM$11.4 MM
Gift Tax Annual Exclusion$15,000$15,000
IRS Standard Mileage Rate
Business Mileage57.5¢58.0¢
Charitable Mileage14¢14¢
Medical and Moving Mileage17¢20¢
Retirement Plans
Defined contribution plan
Annual contribution limit $57,000$56,000
Annual compensation limit$285,000$280,000
Annual elective deferral limit$19,500$19,000
Catch-up for age 50 and over$6,500$6,000
SIMPLE Contribution limit$13,500$13,000
SIMPLE Catch-up for age 50 and over$3,000$3,000
IRA Plan
IRA Contribution limit$6,000$6,000
IRA Catch-up for age 50 and over$1,000$1,000
Code Sec. 179 Expense Election
Section 179 Maximum deduction$1,040,000$1,020,000
Investment-based deduction
phase out
Unemployment Tax Earnings Base
Federal Unemployment Base$7,000$7,000
Michigan Unemployment Base$9,000$9,000
Michigan Minimum Wage
Minimum Wage - Age 18 and older$9.65$9.45
Minimum Wage - Age 16 & 17$8.20$8.03
Health Savings Account (HSA)
Contribution Limits
HSA Contribution - Single Coverage$3,550$3,500
HSA Contribution - Family Coverage$7,100$7,000
HSA Contribution - Catch up for age 55 and over$1,000$1,000
Health flexible spending contribution limit$2,750$2,700

Information is current as of December 20, 2019.

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