INCOM

Mar 21 2020

#2020 #tax #tables #irs-2020 tax tables irs



2020 tax tables irs

IRS Brackets 2020

Each year IRS updates the tax brackets depending on the inflation rate and the changes to the costs of living. Tax brackets represent the taxable amount of your income. The United States uses a progressive tax system which means taxpayers will pay the lowest tax rate if their taxable income falls in the lowest tax bracket. Although the tax rates generally won’t change like the amount of money within the tax brackets, there has been an update last year. After the changes in 2017, tax bracket rates changed to 10%, 12%, 22%, 24%, 32%, 35%, 37% from 10%, 15%, 25%, 28%, 33%, and 35%. This update was after the change to the Tax Cuts and Jobs Act and there have been many updates under the new law. These changes include the elimination of many deductions and exemptions along with a nearly doubled standard deduction. So far the new Tax Brackets for the 2019 tax year(for taxes will be filed in 2020) are listed below.

Tax Rate Single Filers Married-Jointly Filers
10% $0-$9,700 $0-$19,400
12% $9,701-$39,475 $19,401-$78,950
22% $39,476-$84,200 $78,951-$168,400
24% $84,201-$160,725 $168,401-$321,450
32% $160,726-$204,100 $321,451-$408,200
35% $204,101-$510,300 $408,201-$612,350
37% $510,301 and higher $612,350 and higher

There is one thing to watch out when it comes to the Tax Brackets. All of these figures included in the table are after the deductions and exemptions. The numbers represent your taxable income, not your annual income. Let’s say you earned $40,000 in 2019, this alone will not place you in the 22% tax bracket. If you choose to go with the standard deduction which is $12,200 for 2019 tax year, your taxable income will be reduced to approximately $27,800, therefore placing you in the 12% bubble if you are a single individual.

About: Editor

2 thoughts on “IRS Brackets 2020”

Regarding:
“Let’s say you earned $40,000 in 2019, this alone will not place you in the 22% tax bracket. If you choose to go with the standard deduction which is around $12,000, your taxable income will be reduced to approximately $18,000, thus, placing you in the 12% bubble.”

I think you mean’t $28,000, instead of $18,000. And of course that is a 12% bubble for a single person, not married. Plus even if it were $40K, single they would only pay 22% on $525. This is not well understood by many people, so brevity leads to more confusion.

We have corrected the typo. Thank you for your comment!

2020 tax tables irs



2020 tax tables irs

2020 tax tables irs

IRS Brackets 2020 Each year IRS updates the tax brackets depending on the inflation rate and the changes to the costs of living. Tax brackets represent the taxable amount of your income. The
SOURCE: http://www.2020taxbrackets.net/irs-brackets-2020 2020 tax tables irs

Written by admin


%d bloggers like this: