The IRS recently updated tax brackets and some limits for 2020, using information based on the Consumer Price Index published by the Department of Labor. Use these early figures to start developing your tax strategies for next year.
Tax Brackets in 2020
| Marginal Rate | Single Filers | Joint Filers |
|---|---|---|
| 0% | Less than $9,875 | Less than $19,750 |
| 12% | $9,875 to $40,124 | $19,750 to $80,249 |
| 22% | $40,125 to $85,524 | $80,250 to $171,049 |
| 24% | $85,525 to $163,299 | $171,050 to $326,599 |
| 32% | $163,300 to $207,349 | $326,600 to $414,699 |
| 35% | $207,350 to $518,399 | $414,700 to $622,049 |
| 37% | $518,400 or more | $622,050 or more |
Standard Deduction in 2020
| Filing Status | Standard Deduction |
|---|---|
| Single | $12,400 |
| Head of Household | $18,650 |
| Married Filing Jointly | $24,800 |
| Married Filing Separately | $12,400 |
| Dependents (kiddie tax) | $1,100 |
| Age 65 or Blind (Married) | Add $1,300 |
| Age 65 or Blind (Single) | Add $1,650 |
Other Limits in 2020
| Limit | Amount |
|---|---|
| Estate & Gift Tax Exclusion | $11.58 million |
| Annual Gift Tax Exclusion | $15,000 |
| Roth and Traditional IRA Contribution Limit | $6,000 |
| Roth and Traditional IRA Contribution Limit (if age 50 or older) | $7,000 |
This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.