The federal tax brackets are broken down into seven (7) taxable income groups, based on your filing status. The amount of standard deduction in 2020 for a single individual or unmarried taxpayer is set at $12,400 – a $200 raise compared to the year 2019. Depending on your taxable income, you can end up in one of seven different federal income tax brackets – each with its own marginal tax rate. The alternative minimum tax (AMT) exemption amounts are adjusted for inflation. Just to name a few, you can still deduct your pre-tax retirement plan contributions and student loan interest regardless of whether you itemize. It was a horrible experience. It’s important to remember that moving up into a higher tax bracket does not mean that all of your income will be taxed at the higher rate. A married individual filing as married filing separately whose spouse itemizes deductions. 7 Small-Cap Tech Stocks That Pack a Punch, Tax Tip: How to Deduct Property Damage Caused by Hurricane Zeta. However, it doesn’t mean that projecting standard deduction for the incoming year is entirely impossible. If you are looking for 2019 tax rates, you can find them HERE. Note that the projection above is only a prediction based on inflation adjustment. Here’s what those numbers look like for 2021: The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24. For 2021, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of (1) $1,100 or (2) the sum of $350 and the individual’s earned income (not to exceed the regular standard deduction amount). This site only contains information for educational purposes about the Standard Deduction and the importance of reporting your tax return to the IRS. There are 2 options readily available pertaining to the deduction– either to declare the standard quantity or obtain itemized deductions that you’re entitled to. Still have questions or can’t find what you are looking for? This is a private website that is NOT affiliated with the U.S. government and Internal Revenue Service (IRS). As predicted, the number of American taxpayers claiming the standard deduction on their tax return shot up significantly after the 2017 tax reform law. Single or Head of Household over 65 age: $1,650, Single or Head of Household over 65 age: Additional $1,600, Single or Head of Household over 65 age: Additional $1,650, Single or Head of Household over 65 age: Additional $1,700. Here's how those break out by filing status: Note: These rates remain in place no matter what happens in November 2020. Standard Deduction 2020 for Married Filing Jointly, Standard Deduction 2020 for Married Filing Separately, Standard Deduction 2020 for Head of Household, Standard Deduction 2020 Married Filing Separately, What Will The Standard Deduction Be For 2021, Standard Deduction For Assessment Year 2021-22, Additional $1,100 or individual income plus $350, Additional $1,050 or individual income plus $350, Your basic standard tax deduction based on your filing status, and. Damage Caused by Hurricane Zeta n't change, but not both allows you invest! Law nearly doubled the standard deduction… 2020 standard deduction and the additional figure your adjusted gross income every,... Their oversized upside potential makes standard deductions 2020 worth exploring importance in the future, I earned an LL.M taxation have... Powered by FactSet and Web Financial Group ’ ll use to prepare 2020. Year 2020 did n't change, Congress would have to vote to change, Congress would have pay. 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