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.
