For the early planners, the IRS announced updated 2020 income tax rates this week. There are 6 federal income tax brackets for 2020 – 12%, 22%, 24%, 32%, 35%, and 37%.
The standard deduction for married couples filing jointly will rise from $24,400 to $24,800 for the tax year 2020. For single taxpayers and married individuals filing separately the standard deduction rises from $12,200 to $12,400 in 2020. And, for heads of households, the standard deduction will climb from $18,350 to $18,650 for the 2020 tax year.
For tax year 2020, the top tax marginal tax rate remains 37% for individual single taxpayers with incomes greater than $518,400 ($622,050 for married couples filing jointly). The other rates are:
- 35%, for incomes over $207,350 ($414,700 for married couples filing jointly);
- 32% for incomes over $163,300 ($326,600 for married couples filing jointly);
- 24% for incomes over $85,525 ($171,050 for married couples filing jointly);
- 22% for incomes over $40,125 ($80,250 for married couples filing jointly);
- 12% for incomes over $9,875 ($19,750 for married couples filing jointly).
You can read more at the IRS 2020 tax rates on their website.
Also, be sure to check out our other articles on how you can save on income taxes:
- Smart ways to save money when you file your income taxes
- How to check for errors in your tax returns
1 Comment
Could you please provide the exact date of effectivity this tax rate. Thank you very much.