قالب وردپرس درنا توس
Home / Business / What are the 2020 tax brackets?

What are the 2020 tax brackets?



We haven't even finished 2019 yet, but already people are now looking forward to 2020. As the tax season kicks off in late January, taxpayers will begin to look at how much they are likely to owe the federal government in income taxes for fiscal year 2019.

Still, though it is still a while to go before the tax season gets underway, the IRS has already released the 2020 income tax brackets that will apply to the next year's income. They are very similar to what the 2019 tax brackets did, except that they reflect some inflation adjustments that take place almost every year.

  Pencil and fee forms on top of a scattered pile of money.

Image Source: Getty Images.

How to read your bracket ̵
1; and what it means for your taxes

Many people think that their tax class determines the tax rate they will pay on all . But that's not how it works. Tax brackets only apply to revenue that falls within their reach. For example, if you are single with a taxable income of $ 9,850, you are in the tax bracket of 10% and you pay tax of 10% of $ 9,850 or $ 985. However, if your taxable income goes up to $ 10,000, you move up to the 12% group. Some fear it means paying $ 1200 in taxes. But you only pay 12% tax on your income from $ 9,875 to $ 10,000, or $ 125 of your income. That leads to taxes of $ 987.50 plus $ 15, or $ 1,002.50 in total.

Below we will look at the tax brackets that will apply for the tax year 2020 for different filing status.

2020 tax brackets for singles [19659006] If you are not married and do not qualify as a household or surviving spouse, you pay taxes using the following brackets:

Bracket

Tax is this amount plus this percentage [19659010] Of the amount over

$ 0 to $ 9,875

$ 0 plus 10%

$ 0

$ 9,875 to $ 40,125

$ 987.50 plus 12%

$ 9,875 [19659015] $ 40,125 to $ 85,525 $ 4,667.50 plus 19659015%

$ 40,125

$ 85,525 to $ 163,300

$ 14,605.50 plus 24%

$ 85,525

$ 163,300 to $ 207,350 [19659013] $ 33,271.50 plus 32%

$ 163,300 $ 163,300 $ $ 203,300 35%

$ 207,350

Over $ 518,400

$ 156,235 plus 37%

$ 518,400

Data source : IRS.

2020 tax law kits for householders

Special head of household status comes if you are unmarried and provides a home and financial support to a qualified relative, most often children or parents. If you qualify, your brackets are wider than for individual filers, which leads to lower taxes in many cases.

Bracket

Tax is this amount plus this percentage

of amount over

$ 0 to $ 14,100 [19659014] $ 0 plus 10%

$ 0

$ 14,100 to $ 53,700

$ 410 plus 12%

$ 14,100

$ 53,700 to $ 85,500

$ 6,162 plus 22%

$ 53,700 $ 53,700 $ 85,700 $ 16600 $

$ 13 158 plus 24 %

$ 85,500

$ 163,300 to $ 207,350

$ 31,830 plus 32%

$ 163,300

$ 207,350 to $ 518,400

$ 45,926 plus AI $ 5200 $ $ $ 5200 $ $ 5200

$ 154,793.50 plus 37%

$ 518,400

Data Source: IRS.

2020 Tax Consoles for Married Common Filers

Married couples filing jointly use the following tax brackets. They also apply to surviving spouses for a period after death of a deceased spouse.

Bracket

Tax is this amount plus this percentage

Of the amount above

$ 0 to $ 19,750

$ 0 plus 10%

$ 0

$ 19,750 to $ 80,250 [19659013] $ 1,975 plus 12%

$ 19,750

$ 80,250 to $ 171,050

$ 9,235 plus 22%

$ 80,250

$ 1966 $ 29,211 plus 24%

$ 171,050 [19659015] $ 326,600 to $ 414,700

$ 66,543 plus 32%

$ 326,600

$ 414,700 to $ 622,050

$ 94,735 plus 35%

$ 167 307.50 plus 37%

$ 622,050

Data Source: IRS.

2020 Tax Consoles for Married Separate Filers

If you are married, you also have the right to file separate returns. If you do, different parentheses apply where each threshold level is half the corresponding number for joints.

Bracket

Tax is this amount plus this percentage

Of the amount above

$ 0 to $ 9,875

$ 0 plus 10%

$ 0

$ 9,875 to $ 40,125 [19659013] $ 987.50 plus 12%

$ 9,875

$ 40,125 to $ 85,525

$ 4,617.50 plus 22%

$ 65,125 $ 6501 $ 163,300

$ 14,605.50 plus 24%

$ 85,525

$ 163,300 to $ 207,350

$ 33,271.50 plus 32%

$ 163,300

$ 207,350 to $ 311,025 [19659017650] $ 1963 $ 203 $ 311,025

$ 83,653 , 75 plus 37%

$ 311,025

Data Source: IRS.

2020 Tax Cuts for Foundations and Properties

Many people are unaware that chairs and properties also have to pay income tax. Sometimes trust and real estate revenue is made to those who receive distributions from them, but retained income is usually taxed at the rate of trust. These brackets are also relevant for those who have children with unearned income above certain thresholds.

Bracket

Tax is this amount plus this percentage

Of the amount above

$ 0 to $ 2,600

$ 0 plus 10%

$ 0

$ 2,600 to $ 9,450 [19659013] $ 260 plus 24%

$ 2,600

$ 9,450 to $ 12,950

$ 1,904 plus 35%

$ 9,450

over $ 12,950 $ 12,950 $ 12,950%

$ 12,950 [19659030] Data Source: IRS.

Note that all of these tax brackets apply because of tax reform efforts that took place in late 2017. However, these reform laws had sunset provisions, but it eventually required them after the 2025 tax year. If nothing happens in the future, the old brackets with higher income tax rates will automatically apply from 2026.

Get ready for 2020

The tax season for the 2019 tax year starts in January, but it is not too early to do tax planning for the 2020 tax year now. Taking these tax brackets into consideration in 2020 can help you estimate what your tax bill might look like in the coming year.


Source link