10%

0 – $9,875

12%

$9,876 – $40,125

22%

$40,126 – $85,525

24%

$85,526 – $163,300

32%

$163,301 – $207,350

35%

$207,351 – $518,400

37%

Over $518,400

2020 Tax Rates - Married Jointly & Surviving Spouses - Standard Deduction $24,800

10%

0 – $19,750

12%

$19,751 – $80,250

22%

$80,251 – $171,050

24%

$171,051 – $326,600

33%

$326,601 – $414,700

35%

$414,701 – $622,050

39.6%

Over $622,050

2020 Tax Rates - Married Filing Separately - Standard Deduction $12,400

10%

0 – $9,700

12%

$9,876 – $40,125

22%

$40,126 – $85,525

24%

$85,526 – $163,300

32%

$163,301– $207,350

35%

$207,351 – $311,025

37%

More than $311,025

2020 Tax Rates - Head of Household - Standard Deduction $18,650

10%

0 to $14,100

12%

$14,101 – $53,700

22%

$53,701 – $85,500

24%

$85,501– $163,300

32%

$163,301 – $207,350

35%

$207,351 – $518,400

37%

Over $518,400

2020 Tax Rates

Estates & Trusts

10%

0 to $2,600

24%

$2,600 to $9,450

35%

$9,450, to $12,950

37%

Over $12,950

2020 Tax Rates

Social Security

Social Security Tax Rate: Employers

6.2%

Social Security Tax Rate: Employees

6.2%

Social Security Tax Rate: Self-Employed

15.3%

Maximum Taxable Earnings

$137,700

Medicare Base Salary

Unlimited

Medicare Tax Rate

1.45%

Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers)

0.9%

Medicare Tax on net investment income ($200,000 single filers, $250,000 joint filers)

3.8%

2020 Tax Rates

Miscellaneous

Personal Exemption

none

Business expensing deduction limit: Cap on equipment purchases

$2,590,000

Business expensing deduction limit: New and Used Equipment and Software

$1,040,000

Qualified Business Income threshold amount:

$163,300 (single and head of household); $326,600 (married filing joint return)

Qualified Small Employer Health Reimbursement Arrangement limit:

$5,250 (single coverage); $10,450 (family coverage)

Prior-year safe harbor for estimated taxes of higher-income

110% of your 2019 tax liability

Standard mileage rate for business driving

57.5 cents

Standard mileage rate for medical/moving

17 cents

Standard mileage rate for charitable driving

14 cents

Child Tax Credit

$2,000

Unearned income maximum for children under 19 before kiddie tax applies

$1,100

Maximum capital gains tax rate for taxpayers in the 10% or 15% bracket

0%

Maximum capital gains tax rate for taxpayers above the 15% bracket but below 39.6%

15%

Maximum capital gains tax rate for taxpayers in the 39.6% bracket

20%

Capital gains tax rate for unrecaptured Sec. 1250 gains

25%

Capital gains tax rate on collectibles

28%

Maximum contribution for Traditional/Roth IRA

$6,000 if under age 50
$7,000 if 50 or older

Maximum employee contribution to SIMPLE IRA

$13,500 if under age 50
$16,500 if 50 or older

Maximum Contribution to SEP IRA

25% of eligible compensation
up to $57,000

401(k) maximum employee contribution limit

$19,500 if under age 50
$26,000 if 50 or older

Estate tax exemption

$11,580,000

Annual Exclusion for Gifts

$15,000

2020 Tax Rates

Education

American Opportunity Credit (Hope)

$2,500

Lifetime Learning Credit

$2,000

Student Loan Interest Deduction

$2,500

Coverdell Education Savings Contribution

$2,000