List of IRS Income Level Triggers

Check out our detailed list of income levels that trigger the various tax rates, tax benefits, credits, and deductions. Updated for 2021.

In most cases Adjusted Gross Income (AGI) or even Modified Adjusted Gross Income (MAGI) factors into many of these programs. We have a separate post that covers what is AGI vs MAGI and how to compute MAGI for each tax program. Note that Federal tax brackets and Long Term Capital Gains are based on taxable income (after subtracting standard / itemized deductions), which AGI and MAGI do not. 

You may view the list below and also download in Excel or LibreOffice format.

Filing Status: Single

AIG / MAGI Tax Impact

$0

Saver’s Credit of 50%

$0

Federal 10% tax bracket starts

$0

0% Long Term Capital Gains Rate

$9,950

Federal 12% tax bracket starts

$12,880

100% of Federal Poverty Level (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$18,960

Max you can earn before Social Security starts getting reduced (under full retirement age)

$19,751

Saver’s Credit reduced to 20%

$21,501

Saver’s Credit reduced to 10%

$25,000

Tax on up to 50% of Social Security Starts

$33,000

Saver’s Credit eliminated

$34,000

Tax on up to 85% of Social Security Starts

$40,401

15% Long Term Capital Gains Rate Starts

$40,526

Federal 22% tax bracket starts

$50,520

Max you can earn before Social Security starts getting reduced (full retirement age)

$51,520

400% of Federal Poverty Level (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$59,000

Education Credits phase out STARTS

$66,000

IRA Contribution (if covered by retirement plan) phase out STARTS

$69,000

Education Credits phase out ENDS

$70,000

Student loan interest deduction phase out STARTS

$75,000

Child Tax Credit phase out STARTS

$75,000

2021 Pandemic Stimulus Money Phase Out STARTS

$76,000

IRA Contribution (if covered by retirement plan) phase out ENDS

$85,000

Child Tax Credit phase out STARTS

$85,000

Student loan interest deduction phase out ENDS

$86,376

Federal 24% tax bracket starts

$88,000

Medicare premium increase IRMAA

$111,000

Medicare premium increase IRMAA

$125,000

Roth IRA Contribution phase out STARTS

$138,800

Medicare premium increase IRMAA

$140,000

Roth IRA Contribution phase out ENDS

$142,800

Max income applicable to Social Security Taxes / Self Employment Taxes

$150,000

Child Tax Credit phase out ENDS

$164,926

Federal 32% tax bracket starts

$164,901

Qualified Business Income (QBI) deduction eliminated

$165,000

Medicare premium increase IRMAA

$200,000

3.8% NIIT LTCG tax starts

$209,426

Federal 35% tax bracket starts

$445,850

20% Long Term Capital Gains Rate Starts

$500,000

Medicare premium increase IRMAA

$523,601

Federal 37% tax bracket starts

Filing Status: Married Filing Jointly

AIG / MAGI Tax Impact

$0

Saver’s Credit of 50%

$0

Federal 10% tax bracket starts

$0

0% Long Term Capital Gains Rate

$17,420

100% of Federal Poverty Level Family of 2 (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$18,960

Max you can earn (per person) before Social Security starts getting reduced (under full retirement age)

$19,901

Federal 12% tax bracket starts

$26,500

100% of Federal Poverty Level Family of 4 (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$34,000

Tax on up to 50% of Social Security Starts

$39,501

Saver’s Credit reduced to 20%

$43,001

Saver’s Credit reduced to 10%

$44,000

Tax on up to 85% of Social Security Starts

$50,520

Max you can earn (per person) before Social Security starts getting reduced (full retirement age)

$66,000

Saver’s Credit eliminated

$68,960

400% of Federal Poverty Level Family of 2 (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$80,801

15% Long Term Capital Gains Rate Starts

$81,051

Federal 22% tax bracket starts

$105,000

IRA Contribution (if covered by retirement plan) phase out STARTS

$106,000

400% of Federal Poverty Level Family of 4 (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$119,000

Education Credits phase out STARTS

$125,000

IRA Contribution (if covered by retirement plan) phase out ENDS

$139,000

Education Credits phase out ENDS

$140,000

Student loan interest deduction phase out STARTS

$142,800

Max income applicable (per person) to Social Security Taxes / Self Employment Taxes

$150,000

Child Tax Credit phase out STARTS

$150,000

2021 Pandemic Stimulus Money Phase Out STARTS

$170,000

Student loan interest deduction phase out ENDS

$172,751

Federal 24% tax bracket starts

$176,000

Medicare premium increase IRMAA

$198,000

Roth IRA Contribution phase out STARTS

$198,000

IRA Contribution (if spouse has retirement plan) phase out STARTS

$208,000

Roth IRA Contribution phase out ENDS

$208,000

IRA Contribution (if spouse has retirement plan) phase out ENDS

$222,000

Medicare premium increase IRMAA

$250,000

3.8% NIIT LTCG tax starts

$276,000

Medicare premium increase IRMAA

$329,801

Qualified Business Income (QBI) deduction eliminated

$329,851

Federal 32% tax bracket starts

$330,000

Medicare premium increase IRMAA

$418,851

Federal 35% tax bracket starts

$440,000

Child Tax Credit phase out ENDS

$501,601

20% Long Term Capital Gains Rate Starts

$628,301

Federal 37% tax bracket starts

$750,000

Medicare premium increase IRMAA

Filing Status: Head Of Household

AIG / MAGI Tax Impact

$0

Saver’s Credit of 50%

$0

Federal 10% tax bracket starts

$0

0% Long Term Capital Gains Rate

$12,880

100% of Federal Poverty Level

(varies by location and family size)

For Affordable Care Act Premium Tax Credit

$14,201

Federal 12% tax bracket starts

$18,960

Max you can earn before Social Security starts getting reduced (under full retirement age)

$29,626

Saver’s Credit reduced to 20%

$32,251

Saver’s Credit reduced to 10%

$25,000

Tax on up to 50% of Social Security Starts

$34,000

Tax on up to 85% of Social Security Starts

$49,500

Saver’s Credit eliminated

$50,520

Max you can earn before Social Security starts getting reduced (full retirement age)

$51,520

400% of Federal Poverty Level (varies by location and family size)

For Affordable Care Act Premium Tax Credit

$54,101

15% Long Term Capital Gains Rate Starts

$54,201

Federal 22% tax bracket starts

$66,000

IRA Contribution (if covered by retirement plan) phase out STARTS

$70,000

Student loan interest deduction phase out STARTS

$76,000

IRA Contribution (if covered by retirement plan) phase out ENDS

$85,000

Student loan interest deduction phase out ENDS

$86,351

Federal 24% tax bracket starts

$88,000

Medicare premium increase IRMAA

$111,000

Medicare premium increase IRMAA

$112,500

Child Tax Credit phase out STARTS

$112,500

2021 Pandemic Stimulus Money Phase Out STARTS

$119,000

Education Credits phase out STARTS

$125,000

Roth IRA Contribution phase out STARTS

$138,800

Medicare premium increase IRMAA

$139,000

Education Credits phase out ENDS

$140,000

Roth IRA Contribution phase out ENDS

$142,800

Max income applicable to Social Security Taxes / Self Employment Taxes

$164,901

Qualified Business Income (QBI) deduction eliminated

$164,901

Federal 32% tax bracket starts

$165,000

Medicare premium increase IRMAA

$209,401

Federal 35% tax bracket starts

$240,000

Child Tax Credit phase out ENDS

$250,000

3.8% NIIT LTCG tax starts

$473,751

20% Long Term Capital Gains Rate Starts

$500,000

Medicare premium increase IRMAA

$523,601

Federal 37% tax bracket starts


 

Disclaimer: We double checked everything and we think this information is correct. However you will need to verify on your own, given your own unique situation. Make sure to consult with your tax professional on these matters. The numbers and rules above change often. We will try to keep it updated but offer no guarantee of accuracy. Keep in mind that we are not CPAs, accountants, financial advisors or tax preparation professionals. 

This material is for educational purposes only. Nothing here should be taken as tax, legal, or investment advice. Thank you.

 

Downloads:

Tax Triggers - AIG MAGI table 2021.ods

LibreOffice / OpenOffice download

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