Many tax rates are inflation adjusted each year.  The IRS recently announced 2019 inflation adjusted amounts.  Here are some of the key changes from 2018 to 2019:

• Cents per mile for business mileage- 54.5 cents to 58 cents
• Cents per mile for medical mileage- 18 cents to 20 cents
• Annual IRA contribution limit – $5,500 to $6,000 ($1,000 extra for age 50 or over)
• Annual SIMPLE deferral limit- $12,500 to $13,000 ($3,000 extra for age 50 or over)
• Annual defined contribution limit- $55,000 to $56,000
• Annual 401(k) and 403(b) limit- $18,500 to $19,000 ($6,000 extra for age 50 or over)
• Social Security wage base- $128,400 to $132,900
• Qualified business income threshold for pass through entities- $315,000 to $321,400 for married taxpayers and from $157,500 to $160,700 for unmarried taxpayers

Please note that this is not an exhaustive list, but merely highlights of changes.  With the annual changes in various tax limits, you will need expert professional advice to navigate through this confusing process.   Contact us to discuss.