Elementor #1138

1402 East Center St. / Kingsport, TN 37664 423-247-1152 / Toll Free 877-247-1152 To: B&H Clients From: Jeff Bingham B&H Wealth Strategies Subject: Key Financial Data Sheet Date: April 1, 2025 As the 2024 tax season comes to a close it’s time to start thinking about how to minimize your 2025 taxes. So, it is our pleasure to provide you with the 2025 edition of Key Financial Data. You can use this information to determine your income tax rate, income effects on Social Security, capital gains tax rates and much more. Additional updates from the firm include: • Updated website: bhretire.com • 4 Seasons Podcast that can easily be accessed through the website • Updated Facebook page: B&H Wealth Strategies • Biblically Responsible Investment Platform – We call this the 4 Seasons Beatitudes Series We believe “The best is yet to come” and we are committed to serving our clients and this region with financial expertise we acquired over the last 6 decades and a “4 Seasons” service experience that our clients expect. If you have any questions or concerns please reach out to myself or the B&H team @ 423.247.1152 or email Jeff@bhretire.com. Keep the Faith & God Bless America! Jeff Bingham & the B&H Team Enclosure Securities and Registered Investment Advisory Services offered through Silver Oak Securities Inc./Member FINRA/SIPC B&H Wealth Strategies and Silver Oak Securities, Inc. are not affiliated
KEY FINANCIAL DATA 2025 2025 Tax Rate Schedule Taxable income ($) Base amount of tax ($) Plus Marginal tax rate Of the amount over ($) Single 0 to 11,925 + 10.0 11,926 to 48,475 1,192.50 + 12.0 11,925.00 48,476 to 103,350 5,578.50 + 22.0 48,475.00 103,351 to 197,300 17,651.00 + 24.0 103,350.00 197,301 to 250,525 40,199.00 + 32.0 197,300.00 250,526 to 626,350 57,231.00 + 35.0 250,525.00 Over 626,350 188,769.75 + 37.0 626,350.00 Married filing jointly and surviving spouses 0 to 23,850 + 10.0 23,851 to 96,950 2,385.00 + 12.0 23,850.00 96,951 to 206,700 11,157.00 + 22.0 96,950.00 206,701 to 394,600 35,302.00 + 24.0 206,700.00 394,601 to 501,050 80,398.00 + 32.0 394,600.00 501,051 to 751,600 114,462.00 + 35.0 501,050.00 Over 751,600 202,154.50 + 37.0 751,600.00 Head of household 0 to 17,000 + 10.0 17,001 to 64,850 1,700.00 + 12.0 17,000.00 64,851 to 103,350 7,442.00 + 22.0 64,850.00 103,351 to 197,300 15,912.00 + 24.0 103,350.00 197,301 to 250,500 38,460.00 + 32.0 197,300.00 250,501 to 626,350 55,484.00 + 35.0 250,500.00 Over 626,350 187,031.50 + 37.0 626,350.00 Married filing separately 0 to 11,925 + 10.0 11,926 to 48,475 1,192.50 + 12.0 11,925.00 48,476 to 103,350 5,578.50 + 22.0 48,475.00 103,351 to 197,300 17,651.00 + 24.0 103,350.00 197,301 to 250,525 40,199.00 + 32.0 197,300.00 250,526 to 375,800 57,231.00 + 35.0 250,525.00 Over 375,800 101,077.25 + 37.0 375,800.00 Estates and trusts 0 to 3,150 + 10.0 3,151 to 11,450 315.00 + 24.0 3,150.00 11,451 to 15,650 2,307.00 + 35.0 11,450.00 Over 15,650 3,777.00 + 37.0 15,650.00 Tax Deadlines January 15 – 4th installment of the previous year’s estimated taxes due April 15 – Tax filing deadline, or request extension to Oct. 15. 1st installment of 2025 taxes due. Last day to file amended return for 2021. Last day to contribute to: Roth or traditional IRA for 2024; HSA for 2024; Keogh or SEP for 2024 (unless tax filing deadline has been extended). June 16 – 2nd installment of estimated taxes due September 15 – 3rd installment of estimated taxes due October 15 – Tax returns due for those who requested an extension. Last day to contribute to SEP or Keogh for 2024 if extension was filed. December 31 – Last day to: 1) pay expenses for itemized deductions; 2) complete transactions for capital gains or losses; 3) establish a Keogh plan for 2025; 4) establish and fund a solo 401(k) for 2025; 5) complete 2025 contributions to employer-sponsored 401(k) plans; 6) correct excess contributions to IRAs and qualified plans to avoid penalty. Giſt and Estate Tax Exclusions and Credits Maximum estate, giſt & GST rates 40% Estate, giſt & GST exclusions $13,990,000 Giſt tax annual exclusion $19,000 Exclusion on giſts to non-citizen spouse $190,000 Copyright © 2025 Horsesmouth, LLC. All Rights Reserved. Horsesmouth is an independent organization providing unique, unbiased insight into the critical issues facing financial professionals and their clients. Horsesmouth, LLC is not affiliated with the reprint licensee or any of its affiliates. Check with your financial professional for updates. Tax Rates on Long-Term Capital Gains and Qualified Dividends If taxable income falls below $48,350 (single/married-filing separately), $96,700 (joint), $64,750 (head of household), $3,250 (estates) 0% If taxable income falls at or above $48,350 (single/married-filing separately), $96,700 (joint), $64,750 (head of household), $3,250 (estates) 15% If income falls at or above $533,400 (single), $300,000 (married-filing sepa- rately), $600,050 (joint), $566,700 (head of household), $15,900 (estates) 20% 3.8% Tax on Lesser of Net Investment Income or Excess of MAGI Over Married, filing jointly $250,000 Single $200,000 Married, filing separately $125,000 Education Credits, Deductions, and Distributions Credit/Deduction/ Account Maximum credit/ deduction/ distribution Income phaseouts begin at AGI of: American Opportunity Tax Credit/Hope $2,500 credit $160,000 joint $80,000 all others Lifetime learning credit $2,000 credit $160,000 joint $80,000 all others Savings bond interest tax-free if used for education Deduction limited to amount of qualified expenses $149,250 joint $99,500 all others Coverdell $2,000 maximum; not deductible $190,000 joint $95,000 all others 529 plan (K-12) $10,000 distribution None 529 plan (Higher Ed.) † Distribution limited to amount of qualified expenses None Exemption Amounts for Alternative Minimum Tax** Married, filing jointly or surviving spouses $137,000 Single $88,100 Married, filing separately $68,500 Estates and trusts $30,700 28% tax rate applies to income over: Married, filing separately $119,550 All others $239,100 Exemption amounts phase out at: Married, filing jointly or surviving spouses $1,252,700 Single and married, filing separately $626,350 Estates and trusts $102,500 * Greater of $1,350 or $450 plus the individual’s earned income. ** Indexed for inflation and scheduled to sunset at the end of 2025. † $10,000 lifetime 529 distribution can be applied to student loan debt. Standard Deductions & Child Tax Credit Filing status Standard deduction Married, filing jointly and qualifying widow(er)s $30,000 Single or married, filing separately $15,000 Head of household $22,500 Dependent filing own tax return $1,350* Additional deductions for non-itemizers Blind or over 65 Add $1,600 Blind or over 65, unmarried & not a surviving spouse Add $2,000 Child Tax Credit Credit per child under 17 $2,000 ($1,700 refundable) Income phaseouts begin at AGI of: $400,000 joint, $200,000 all other Jeff & Jake Bingham B&H Wealth Strategies 1402 E. Center St Kingsport, TN 37664 423-247-1152 jeff@BHRetire.com www.BHRetire.com License #: 6100817 Reprint Licensee: Jeff & Jake Bingham Jeff & Jake Bingham B&H Wealth Strategies 1402 E. Center St Kingsport, TN 37664 423-247-1152 jeff@BHRetire.com www.BHRetire.com License #: 6100817 Reprint Licensee: Jeff & Jake Bingham
Social Security Benefits Estimated maximum monthly benefit if turning full retirement age (66 years and 10 months) in 2025 $4,018 Retirement earnings exempt amounts $23,400 under FRA $62,160 during year reach FRA No limit aſter FRA Tax on Social Security benefits: income brackets Filing status Provisional income* Amount of Social Security subject to tax Married filing jointly Under $32,000 $32,000-$44,000 Over $44,000 0 up to 50% up to 85% Single, head of household, qualifying widow(er), married filing separately and living apart from spouse Under $25,000 $25,000-$34,000 Over $34,000 0 up to 50% up to 85% Married filing separately and living with spouse Over 0 up to 85% Tax (FICA) SS tax paid on income up to $176,100 % withheld Maximum tax payable Employer pays 6.2% $10,918.20 Employee pays 6.2% $10,918.20 Self-employed pays 12.4% $21,836.40 Medicare tax Employer pays 1.45% varies per income Employee pays 1.45% plus 0.9% on income over $200,000 (single) or $250,000 ( joint) varies per income Self-employed pays 2.90% plus 0.9% on income over $200,000 (single) or $250,000 ( joint) varies per income Deductibility of Long-Term Care Premiums on Qualified Policies Attained age before close of tax year Amount of LTC premiums that qualify as medical expenses in 2025 40 or less $480 41 to 50 $900 51 to 60 $1,800 61 to 70 $4,810 Over 70 $6,020 Health Savings Accounts Annual limit Maximum deductible contribution Expense limits (deductibles and co-pays) Minimum annual deductible Individuals $4,300 $8,300 $1,650 Families $8,550 $16,600 $3,300 Catch-up for 55 and older $1,000 Medicare Deductibles Part B deductible $257.00 Part A (inpatient services) deductible for first 60 days of hospitalization $1,676.00 Part A deductible for days 61-90 of hospitalization $419.00/day Part A deductible for more than 90 days of hospitalization $838.00/day Medicare Premiums 2023 MAGI single 2023 MAGI joint Part B Premium Part D income adjustment $106,000 or less $212,000 or less $185.00 $0 106,001-133,000 212,001-266,000 $259.00 $13.70 133,001-167,000 266,001-334,000 $370.00 $35.30 167,001-200,000 334,001-400,000 $480.90 $57.00 200,001-500,000 400,001-750,000 $591.90 $78.60 Above 500,000 Above 750,000 $628.90 $85.80 Uniform Lifetime Table (partial) Age of IRA owner or plan participant Life expectancy (in years) Age of IRA owner or plan participant Life expectancy (in years) 73 26.5 89 12.9 74 25.5 90 12.2 75 24.6 91 11.5 76 23.7 92 10.8 77 22.9 93 10.1 78 22.0 94 9.5 79 21.1 95 8.9 80 20.2 96 8.4 81 19.4 97 7.8 82 18.5 98 7.3 83 17.7 99 6.8 84 16.8 100 6.4 85 16.0 101 6.0 86 15.2 102 5.6 87 14.4 103 5.2 88 13.7 104 4.9 Retirement Plan Contribution Limits Annual compensation used to determine contribution for most plans $350,000 Defined-contribution plans, basic limit $70,000 Defined-benefit plans, basic limit $280,000 401(k), 403(b), 457(b), Roth 401(k) plans elective deferrals $23,500 Catch-up provision for individuals 50-59 and 64+, 401(k), 403(b), 457(b), Roth 401(k) plans $7,500 Catch-up provision for individuals 60-63, 401(k), 403(b), 457(b), Roth 401(k) plans $11,250 SIMPLE plans, elective deferral limit $16,500 SIMPLE plans, catch-up contribution for individuals 50 and over $3,500 Information contained herein is current as of 12/30/24. It is subject to legislative changes and is not intended to be legal or tax advice. Consult a qualified tax advisor regarding specific circumstances. This material is furnished “as is” without warranty of any kind. Its accuracy and completeness is not guaranteed and all warranties expressed or implied are hereby excluded. *Provisional income = adjusted gross income (not incl. Social Security) + tax-exempt interest + 50% of Social Security benefit Individual Retirement Accounts IRA type Contribu- tion limit Catch-up at 50+ Income limits Traditional nondeductible $7,000 $1,000 None Traditional deductible $7,000 $1,000 If covered by a plan: $126,000 - $146,000 joint $79,000 - $89,000 single, HOH 0 - $10,000 married filing separately If one spouse is covered by a plan: $236,000 - $246,000 joint Roth $7,000 $1,000 $236,000 - $246,000 joint $150,000 - $165,000 single & HOH 0 - $10,000 married filing separately Roth conversion No income limit Copyright © 2025 Horsesmouth, LLC. All Rights Reserved. Sources: IRS, Affordable Care Act, Social Security Administration, Centers for Medicare & Medicaid Services, Misc IRS documents. Securities and Registered Investment Advisory Services offered through Silver Oak Securities, Inc. Member FINRA/SIPC. B&H Wealth Strategies and Silver Oak Securities, Inc. are not affiliated. Securities and Registered Investment Advisory Services offered through Silver Oak Securities, Inc. Member FINRA/SIPC. B&H Wealth Strategies and Silver Oak Securities, Inc. are not affiliated.
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