Inflation Rates and Tax Tables

2020 Inflation Adjustments and Tax Tables

The IRS has issued its annual inflation adjustments for more than 60 tax provisions. These adjusted amounts will be used to prepare tax year 2020 returns in 2021. Revenue Procedure 2019-44 provides details on the adjustments.

2020 Tax Rates

Tax Rate Single Married Filing Jointly
37% $518,400 $622,050
35% $207,350 $414,700
32% $163,300 $326,600
24% $85,525 $171,050
22% $40,125 $80,250
12% $9,875 $19,750
10% $9,875 $19,750

Standard Deductions

Filing Status 2019 Deduction 2020 Adjusted
Single $12,000 $12,400
Married Filing Jointly $24,000 $24,800
Married Filing Single $12,000 $12,400
Head of Household $18,000 $18,650

Alternative Minimum Tax

Filing Status Exemption
Single $72,900
Married Filing Jointly $113,400
Married Filing Single $56,700
Estates and Trusts $25,400

 

Additional Deductions and Credits

  • Medical and Dental: You can deduct expenses that exceed 10% of your adjusted gross income.
  • State and Local: Remains the same and is capped at $10,000 per year for married filing jointly taxpayers, or $5,000 per year for taxpayers filing separately.
  • Charitable Donations: Charitable cash donations to public charities will remain at 60% for 2020.
  • Miscellaneous Deductions: Miscellaneous deductions, including unreimbursed employee expenses and tax preparation expenses, which exceed 2% of your adjusted gross income have been eliminated.
  • Adoption Credit: The maximum amount of the adoption credit will increase to $14,300 up from $14,080 in 2019.
  • Earned Income Tax Credit: For 2020, the maximum EITC amount available is $6,660 for married taxpayers filing jointly who have three or more qualifying children (it’s $538 for married taxpayer with no children).
  • Foreign Earned Income Exclusion: The foreign earned income exclusion has increased from $105,900 to $107,600.
  • The personal exemption for tax year 2020 remains at 0, as it was for 2019. This elimination was a provision in the Tax Cuts and Jobs Act.
  • As in 2019 and 2018, for tax year 2020 there is no limitation on itemized deductions.

Our Individual & Family Tax Practice is up-to-date on these and other inflation adjustments and ready to assist you in optimizing your tax return. Connect with us today.

Contact Us

Related posts
Person Writing Check

Individual Tax Planning Tip: Use Donor-Advised Funds to Plan Charitable Donations

As individuals look for year-end planning opportunities to see benefits on their 2019 taxes, one…

Read More
Midsection Of Colleagues Discussing Graphs On Desk While Sitting In Office

Family Office Structuring in Light of Lender Ruling

Recent court rulings and tax reform legislation has an impact on family office expense deduction.…

Read More