IRS Tax changes for 2020
Bottom Line: I’ve had to rewrite the opening sentence to this story five times because there are few thoughts that make me unhappier than thinking about federal income taxes. So, I’ll just jump in and say that the updated tax tables and changes are out for the upcoming tax season. Now to be clear, this is for 2020 taxes that will be due by 2021. Here’s the lay of the land:
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
Joint filers
- 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
Incidentally for those who aren’t aware, this is how and why the top 1% of earners account for 37% of all federal income taxes paid while the bottom 50% of earners account for only 5% of federal incomes taxes paid. The standard deduction is rising to $12,400 (double for joint filers) meaning that the first $12,400 of one’s income isn’t subject to any federal income tax upon filing. Now back to cursing under my breath or something like that...