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PARTNER FOR

With over 100 years of community service and knowledge, HCF seeks to mobilize large-scale change for people and communities in Hawai‘i. To achieve this goal, HCF created the CHANGE Framework that zeroes in on six essential areas that constitute the overall well-being in our state. C – Community & Economy H – Health & Wellness A – Arts & Culture N – Natural Environment G – Government & Civics E – Education CHANGE is informed by data and works to identify gaps and opportunities so that partners can create shared goals for greater impact. Let us help you help your clients reach their giving goals, ensuring that their generosity is transformed into lasting change. www.hawaiicommunityfoundation.org/change

Amplify the power of giving

Contact us to learn more about how we can help you and your clients create the greatest impact with their charitable giving:              

O‘ahu    808‐537‐6333   Hawai‘i Island    Hilo   808‐935‐1206    Kamuela    808‐885‐2174   Kaua‘i    808‐245‐4585    Maui    808‐242‐6184   HawaiiCommunityFounda on.org 

Tax Reference Guide 2019


2019 Tax Reference Guide Federal Estate, Gi & GST Taxes

Federal Income Taxes

Estate & Gi Tax Exclusion Amount for U.S. Individual (indexed)

$11.4 million 

GST Tax Exclusion Amount for U.S. Individual (indexed)

$11.4 million  Top Income Tax Rate: Everyone Else

Top Federal Estate/Gi Tax Rate Portability? 

40% YES, for Estate & Gi  Tax  Exclusion Amount 

Top Trust & Estate Income Tax Rate Basis Step‐Up? 

Top Income Tax Rate: “High Income Taxpayers” (taxable income over $510,300 individuals; $612,350 joint)

37% (over $12,750)  YES, for gi s at death 

State Death Tax Deduc on?

$15,000

Annual Exclusion – Non‐U.S. Ci zen Spouse (indexed) 

$155,000

20% , if taxable income is  less than $160,700  individuals; $321,400  joint.  Otherwise, limited  

20% LTCG & Dividend Rate: On LTCG  and qualified dividends which results in  taxable income over... 

$434,550 single  $461,700 HOH  $488,850 Joint (1/2 for MFS)  $12,950 Estates & Trusts 

15% LTCG & Dividend Rate: On LTCG  and qualified dividends which results in  taxable income over... 

$39,375 single  $52,750 HOH  $78,750 Joint (1/2 for MFS)  $2,650 Estates & Trusts 

0% LTCG & Dividend Rate

Hawai‘i Estate & GST Taxes Time to File

Same day as federal return

Filing Extension Payment Extension

Granted if federal filing extended Granted if federal payment  extended

Estate Tax Exclusion Amount (subject to change)

Applicable GST Tax Rate Portability?

15.7% 2.25% x inclusion ra o

Civil Union Marital Deduc on?

YES

Gi Tax?

NO

Hawai‘i Income & General Excise Taxes

LTCG Rate

11% 7.25%

Top Dividend Rate

11%

General Excise Tax

4%

O‘ahu County Surcharge

Standard Deduc on

AMT Exemp on Amount (Indexed)

YES, for Estate Tax   Exclusion Amount

Top Income Tax Rate

Itemized Deduc on Limita ons: Mortgage Interest (debt on or a er 12/15/17)  Charitable Contribu ons of Cash  State & Local Taxes 

$5.49 million 

Top Estate Tax Rate

0.5%

10 ‐35%

Tax Deduc on on S Corp, Partnerships, LLCs and Sole Prop “qualified business income” (QBI)

YES

Annual Exclusion (indexed)

IRA & Pension Limits 37%

Personal Exemp on

Anyone under the 15%  breakpoint     Interest on $750,000  60% of AGI  $10,000 

Catch‐up Contribu on for Employees 50 and Older

$7,000

IRA Annual Contribu on Limit

$6,000

IRA Deduc on Phase‐Out (Based on MAGI for Taxpayers Covered by Workplace Re rement Plan)

$64,000 ‐ $74,000 single, HOH $103,000 ‐ $123,000 Joint

Roth IRA Deduc on Phase‐ Out (Based on MAGI)

$122,000 ‐ $137,000 single, HOH  $193,000 ‐ $203,000 Joint

AGI Limit for Re rement Savings Contribu on Credit

$32,000 single, MFS $48,000 HOH $64,000  Joint

Tax‐Free Charitable Roll‐over from IRA for Individuals 70½ and older

$100,000

Hawai‘i Community Founda on Charitable Fund Types Donor Advised Fund/Signature Fund – Allows a donor (or someone the  donor selects) the right to recommend grants from the fund over  me.  An inexpensive alterna ve to private founda ons. 

$71,700 single, HOH $111,700 Joint (1/2 for MFS)

Designated Fund –  For  donors  who  want  to  support  a  specific  charitable organiza on while ensuring the funds are u lized consistent  with the donor’s wishes.   

21%

Health Care Taxes Health Care Surtax: $200,000 of MAGI for  individuals; $250,000 for Joint (1/2 for MFS);  $12,750 for trusts

3.8% on the lesser of  (1) net investment  income; or (2) the  excess of MAGI over  the threshold amount.

Addi onal Medicare Surtax: On wages in  excess of $200,000 single, HOH; $250,000  Joint (1/2 for MFS); not indexed

0.9%

Medical Expense Deduc on Limita on

$19,000

$12,200 single, MFS  $18,350 HOH  $24,400 Joint 

None, suspended 

Corpora on Tax Rate

Annual Contribu on Limits 401(k), 403(b), most 457 Plans and Federal Government Thri Savings Plan

7.5% of AGI

The informa on in this handout is provided “as is” and is for general educa onal purposes only. Hawai‘i Community Founda on, their respec ve employees, and agents specifically disclaim any and all liability and loss of risk incurred as a result of the use and applica on, either directly or indirectly, of the material contained in this educa onal handout, whether or not negligently provided.

Field of Interest Fund – Allows a donor to define one or more areas of  charitable concern. The field may be as broad as  “Maui County”, “girls  & women”, “the environment”, or “health and welfare”, or as specific  as “early childhood literacy”.  Catalyst Fund  –  This  fund  enables  the  development  of  strategies  to  grapple  with  important  local  challenges,  strengthen  leadership  within  Hawai‘i’s nonprofit community, and promote collabora ve partnerships  among donors to make the greatest impact.    Scholarship Fund – Provides post‐secondary educa on scholarships to  individual recipients. Grants may be awarded to the individuals or they  may be awarded to educa onal ins tu ons.  Charitable Gi Annuity (CGA) – A gi  through a CGA to the Hawai‘i  Community Founda on provides the donor and/or a loved one a fixed  payment for life.  At the death of the last annuitant, the remainder  establishes a fund to fulfill the donor’s charitable wishes.     

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Tax Reference Guide 2019  

Tax Reference Guide 2019  

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