2020 IRS Tax Rates & Brackets

Published

The 2020 tax rates that affect your tax filing for 2021, came out on Wednesday 6th Nov 2019 !Find the copy of IRS release on the 2020 tax rates and income brackets. While the seven slabs of tax rates remain unchanged, the income limits have been changed. You can consult 2019 tax brackets for filing in 2020.

Tax Brackets and Rates, 2020

Unmarried Individuals

Rate

Taxable Income Over

10% $0
12% $9875
22% $40.125
24% $85,525
32% $163,300
35% $207,350
37% $518,400

Married Individuals Filing Separately

Rate

Taxable Income Over

10% $0
12% $9875
22% $40.125
24% $85,525
32% $163,300
35% $207,350
37% $311,025

Married Individuals, Filing Joint Returns

Rate

Taxable Income Over

10% $0
12% $19,750
22% $80,250
24% $171,050
32% $326,600
35% $414,700
37% $622,050

Heads of Households

Rate

Taxable Income Over

10% $0
12% $14,100
22% $53,700
24% $85,500
32% $163,300
35% $207,350
37% $518,400

Standard Deduction 2020

Filing Status

Deduction Amount

Single(married or unmarried) $12,400
Married Filing Jointly $24,800
Head of Household $18,650

Alternative Minimum Tax Exemptions, 2020

Filing Status

Deduction Amount

Unmarried Individuals $72,900
Married Filing Jointly $113,400
Married Filing Separately $56,700
Trusts & Estate $25,700

Alternative Minimum Tax Exemption Phaseout Thresholds, 2020

Filing Status

Threshold

Unmarried Individuals(other than surviving spouse) and Married Individuals Filing Separate Returns $518,400
Joint Returns or Surviving Spouses $1,036,800

2020, Earned Income Tax Credit Parameters

Filing Status

No Children

One Child

Two Children

Three or More Children

Single or Head of Household Income at Max Credit $7,030 $10,540 $14,800 $14,800
Maximum Credit $538 $3,584 $5,920 $6,660
Phaseout Begins $8,790 $19,330 $19,330 $19,330
Phaseout Ends (Credit
Equals Zero)
$15,820 $41,756 $47,440 $50,954
Married Filing Jointly Income at Max Credit $7,030 $10,540 $14,800 $14,800
Maximum Credit $538 $3,584 $5,920 $6,660
Phaseout Begins $14,680 $25,220 $25,220 $25,220
Phaseout Ends (Credit Equals Zero) $21,710 $47,646 $53,330 $56,844

2020, Capital Gains Brackets

For Unmarried Individuals, Capital Gains upto

 

For Married Individuals Filing Joint Returns, Capital Gains Upto

For Heads of Households, Capital Gains Upto

For Trusts & Estates

Capital Gains Upto

0% $40,000 $80,000 $53,600 $2,650
15% $441,000 $496,600 $469,050 $13,150
20% exceeding

$441,000

exceeding $496,600 exceeding

$496,050

exceeding

$13,150

2020, Qualified Business Income Deduction Thresholds

Filing Status

Threshold

Unmarried Individuals & all others $163,300
Married Filing Jointly $326,600

Estate Income Tax Rates

Estate’s IncomeTax rate
Upto $2,60010%
$2,601 to $9,45024%
$9,451 to $12,95035%
Over $12,95037%

By Prashant Thakur

Prashant Thakur is a tax advisor . He has written two books on tax laws of India. He regularly writes on his paid-only website http://taxworry.com. He is learning about the Internal Revenue Code of USA as many of clients and readers are of India origin and also are tax resident of USA . So . solving their tax issues require reference to IRC of USA.