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    2020 Tax Brackets and Limits Announced

    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.