If your spouse was covered by a retirement plan, but you were not, you may be able to take an IRA deduction if your 2021 MAGI is less than $208,000. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2021 modified adjusted gross income (MAGI) is less than $76,000 ($125,000 if married filing jointly or a qualifying widow(er)). All net earnings are subject to the Medicare part of the tax. For 2021, the maximum amount of net earnings from self-employment that is subject to the social security part of the self-employment tax has increased to $142,800. See Limit on housing expenses under Foreign Housing Exclusion and Deduction in chapter 4. The amount of qualified housing expenses eligible for the housing exclusion and housing deduction has changed for some locations. See Housing Amount under Foreign Housing Exclusion and Deduction in chapter 4. The amount is 16% of the exclusion amount (figured on a daily basis), multiplied by the number of days in your qualifying period that fall within your 2021 tax year. The computation of the base housing amount (line 32 of Form 2555) is tied to the maximum foreign earned income exclusion. See Limit on Excludable Amount under Foreign Earned Income Exclusion in chapter 4. For 2021, the maximum exclusion has increased to $108,700.
![purchase turbotax 2015 nyc purchase turbotax 2015 nyc](https://blog.mint.com/wp-content/uploads/2020/09/what-is-the-pink-tax.png)
The maximum foreign earned income exclusion is adjusted annually for inflation. For more information, go to IRS.gov/Payments/Tax-Withholding. Due to the increase in the standard deduction, you may be required to file a new Form W-4. Married filing jointly or Qualifying widow(er)-$25,100 and Single or Married filing separately-$12,550