--- title: 2021 Cost of Living Adjustments description: 2021 Cost of Living Adjustments image: https://blog.brixeyandmeyer.com/hubfs/Cost%20of%20Living%20Adjustments.png --- [![Brixey Meyer](https://blog.brixeyandmeyer.com/hs-fs/hubfs/raw_assets/public/Brixey_and_Meyer_January2023/images/Brixey-white.png?width=3092&height=1080&name=Brixey-white.png "Brixey Meyer")](https://www.brixeyandmeyer.com/) - [Home](https://www.brixeyandmeyer.com/) - [Our Services](https://brixeyandmeyer.com/#headline-143-59) - [Audit & Assurance](https://www.brixeyandmeyer.com/audit-and-assurance) - [CFO Services](https://www.brixeyandmeyer.com/cfo-services) - [Cyber Risk Management](https://www.brixeyandmeyer.com/cyber-sure) - [Environmental, Social & Governance](https://www.brixeyandmeyer.com/environmental-social-governance-services-esg) - [Human Resources](https://www.brixeyandmeyer.com/human-resources) - [Operations, Technology & Strategy](https://www.brixeyandmeyer.com/operations-technology-strategy) - [Retirement Plan Administration](https://www.brixeyandmeyer.com/retirement-plan-administration) - [State & Local Tax](https://www.brixeyandmeyer.com/state-local-tax) - [Tax Compliance & Consulting](https://www.brixeyandmeyer.com/tax-compliance-and-consulting) - [Transaction Advisory](https://www.brixeyandmeyer.com/transaction-advisory-services) - [Valuation](https://www.brixeyandmeyer.com/valuation-services) - [Insights](https://blog.brixeyandmeyer.com/) - [About](https://brixeyandmeyer.com/?page_id=206) - [About B&M](https://www.brixeyandmeyer.com/about-bm) - [Our Team](https://www.brixeyandmeyer.com/our-team) - [Join Our Team](https://www.brixeyandmeyer.com/join-our-team) - [Contact](https://www.brixeyandmeyer.com/contact) - [Get Started](https://www.brixeyandmeyer.com/get-started) - [Client Portal](https://www.clientaxcess.com/#/login) - [Make a Payment](https://secure.cpacharge.com/pages/brixeyandmeyer/payments) - [Home](https://www.brixeyandmeyer.com/) - [Our Services](https://brixeyandmeyer.com/#headline-143-59) - [Audit & Assurance](https://www.brixeyandmeyer.com/audit-and-assurance) - [CFO Services](https://www.brixeyandmeyer.com/cfo-services) - [Cyber Risk Management](https://www.brixeyandmeyer.com/cyber-sure) - [Environmental, Social & Governance](https://www.brixeyandmeyer.com/environmental-social-governance-services-esg) - [Human Resources](https://www.brixeyandmeyer.com/human-resources) - [Operations, Technology & Strategy](https://www.brixeyandmeyer.com/operations-technology-strategy) - [Retirement Plan Administration](https://www.brixeyandmeyer.com/retirement-plan-administration) - [State & Local Tax](https://www.brixeyandmeyer.com/state-local-tax) - [Tax Compliance & Consulting](https://www.brixeyandmeyer.com/tax-compliance-and-consulting) - [Transaction Advisory](https://www.brixeyandmeyer.com/transaction-advisory-services) - [Valuation](https://www.brixeyandmeyer.com/valuation-services) - [Insights](https://blog.brixeyandmeyer.com/) - [About](https://brixeyandmeyer.com/?page_id=206) - [About B&M](https://www.brixeyandmeyer.com/about-bm) - [Our Team](https://www.brixeyandmeyer.com/our-team) - [Join Our Team](https://www.brixeyandmeyer.com/join-our-team) - [Contact](https://www.brixeyandmeyer.com/contact) - [Get Started](https://www.brixeyandmeyer.com/get-started) ![](https://blog.brixeyandmeyer.com/hubfs/Cost%20of%20Living%20Adjustments.png) # 2021 Cost of Living Adjustments Published by [Steve Hood](https://blog.brixeyandmeyer.com/author/steve-hood) on Nov 17, 2020 10:43:43 AM Get prepared for 2021! Check out the cost of living adjustments and see how you will be affected. **New IRA Income Eligibility Rate for 2021** Income Phase-Out Ranges determine Eligibility to make deductible contributions to Traditional IRA accounts: Traditional IRA phase-out ranges - $66,000 to $76,000 - Single taxpayers covered by workplace retirement plan. - $105,000 to $125,000 - Married Couples Filing Jointly. This applies when the spouse making the IRA contribution is covered by a workplace retirement plan. - $198,000 to $208,000 – A taxpayer not covered by a workplace retirement plan married to someone who is covered - $0 to $10,000 - Married Filing Separately Income Phase-Out Ranges for Taxpayers making contributions to a Roth IRA accounts: - $125,000 to $140,000 - Single taxpayers and Heads of Household - $198,000 to $208,000 - Married Couples Filing Jointly - $0 to $10,000 - Married Filing Separately Income limits for Saver's Credit, also called Retirement Savings Contributions Credit - $66,000 – Married, filing jointly. - $49,500 – Head of household. - $33,000 – Singles and married individuals filing separately **Education and Child-Related Breaks** *The American Opportunity Credit*- Phase out ranges for this education (maximum $2,500 per eligible student) remain the same for 2021: $160,000 - $180,000 for joint filers and $80,000 - $90,000 for all other filers *The Lifetime Learning Credit* - The phaseout ranges for this education credit (maximum $2,000 per tax return) increase for 2021. They are $119,000-$139,000 for joint filers and $59,000-$69,000 for other filers — up $1,000 for joint filers, but the same as 2020 for others *The adoption credit -* The phaseout ranges for eligible taxpayers adopting a child will also increase for 2021 — by $2,140 to $216,660-$256,660 for joint, head-of-household and single filers. The maximum credit increases by $140, to $14,440 for 2021. **Gift and Estate Taxes** The unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption are both adjusted annually for inflation. For 2021, the amount is $11.7 million (up from $11.58 million for 2020). The annual gift tax exclusion remains at $15,000 for 2021. It is adjusted only in $1,000 increments, so it typically increases only every few years. (It increased to $15,000 in 2018.) **Retirement Plans** Not all of the retirement-plan-related limits increase for 2021. Thus, you may have limited opportunities to increase your retirement savings if you have already been contributing the maximum amount allowed: ![Type of Limitations 2021](https://blog.brixeyandmeyer.com/hs-fs/hubfs/Type%20of%20Limitations%202021.png?width=1339&name=Type%20of%20Limitations%202021.png) Please feel free to reach out to Brixey & Meyer to help navigate 2021. You can simply comment below, visit our [website](https://info.brixeyandmeyer.com/e2t/c/*VspZXt8ZLRnkV9cdlF6qtWNy0/*W6SP_Dx2y2lYQW4j6qJp6SvpQH0/5/f18dQhb0Sjv98XJ9c2W3gKrw65VQHvDW6bMYRp4VSZjFW4R4G2g57mvFqW3BJFQw8Vm6N7W60Smq27NTcV6W5rKNCK7MzhxWW9cYnPW7NqMJVW5mBCg04CB5ysW83_Pyq834DLzW8XWFyv7gKbswW4PCnc53tT46_W5JB8vz5ZpycSW57-ZBT83C5JPW1Z66s183KHrFW7J39pB2przrYN6W3RDgHd1f4Mz74JcYSX-5W7m_B1R5c8d-SN377W4Dc4VMpW3t7YXs5v_HQRW8SfFNM8ngV-XW7Yp8dJ3t3d18W1qYTWK8xdBYDW4WnMFS7xYBCtW8pm9SQ61LjnkW1wrGh325_Nn5MXS4CgFv169W4CNDgJ7d-82lW6Q_tNV1wWp8vW4rKQCS4Vqq31W49kJ936fV57YN11rnNb4VjkzW6NjsDd32Gpp0W14XRk-1CZgJFW5mRgWy3f5MfrW6_tFND5Ky5QPW8PSM4L8-FZSDW7BSPVF3rYwDNN3GP1LMtJCL4M3_BVMKkxLx111) or call us at 866.760.0940.  Tags: [ohio](https://blog.brixeyandmeyer.com/topic/ohio), [year-end planning](https://blog.brixeyandmeyer.com/topic/year-end-planning), [Tax](https://blog.brixeyandmeyer.com/topic/tax), [Tax Team](https://blog.brixeyandmeyer.com/topic/tax-team), [Tax updates](https://blog.brixeyandmeyer.com/topic/tax-updates), [workplace productivity](https://blog.brixeyandmeyer.com/topic/workplace-productivity), [Management](https://blog.brixeyandmeyer.com/topic/management), [New Year](https://blog.brixeyandmeyer.com/topic/new-year), [2021](https://blog.brixeyandmeyer.com/topic/2021) [Back to Blog](https://blog.brixeyandmeyer.com) - [Tweet](https://twitter.com/share) ## Related Articles ## [IRS Updates ERC Processing and Addresses Backlog](https://blog.brixeyandmeyer.com/irs-updates-erc-processing-and-addresses-backlog) On June 20, 2024, the IRS issued news release IR-2024-169 announcing the next stage of Employee... 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