IRS releases updated income tax brackets for 2020
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The IRS on Wednesday released the updated tax brackets for the 2020 filing season, which have been modified to keep pace with inflation.
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The 2020 filing season refers to taxes that need to be filed in April 2021.
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Here’s a look at the new rates:
Single filers
- 10 percent for incomes up to $9,875
- 12 percent for incomes over $9,875
- 22 percent for incomes over $40,125
- 24 percent for incomes over $85,525
- 32 percent for incomes over $163,300
- 35 percent for incomes over $207,350
- 37 percent for incomes over $518,400
Married couples filing jointly
- 10 percent for incomes up to $19,750
- 12 percent for incomes over $19,750
- 22 percent for incomes over $80,250
- 24 percent for incomes over $171,050
- 32 percent for incomes over $326,600
- 35 percent for incomes over $414,700
- 37 percent for incomes over $622,050
For the 2019 rates, click here.
Married individuals filing separately
- 10 percent for incomes up to $9,875
- 12 percent for incomes over $9,875
- 22 percent for incomes over $40,125
- 24 percent for incomes over $85,525
- 32 percent for incomes over $163,300
- 35 percent for incomes over $207,350
- 37 percent for incomes over $311,025
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Additionally, the standard deduction will increase to $24,800 in tax year 2020, a $400 increase, for married taxpayers filing jointly. For single taxpayers, it will rise by $200 to $12,400.
The maximum amount for the Earned Income Tax Credit will rise to $6,660.
The Alternative Minimum Tax exemption will rise to $72,900 (from $71,700) and will begin to phase out at $518,400 (from $510,300). For married taxpayers filing jointly, the exemption will be $113,400 and the phase out will begin at $1,036,800.