2020 Key Tax Facts
- Tax Foundation 2020 Tax Brackets
- Charitable - .14 per mile, .14 for 2021
- Moving - .17 per mile, .16 for 2021
- Medical - .17 per mile, .16 for 2021
- Business-related - .575 per mile, .56 for 2021
- Depreciation component - .27 per mile, .26 for 2021
2020 Income Limits & Phaseouts Begin
- Foreign Earned Income Exclusion: 107,600
- Itemized Deductions: (Does Not Apply)
- State & Local tax deduction limit: Single 5,000, MfJ 10,000
- Personal Exemption §151 : -0- (Does Not Apply)
- Standard Deduction §63 : Single 12,400, MfJ 24,800
- 24% Tax Bracket starts at: Single 85,525, MfJ 171,050
- 37% "Top Rate" starts at: Single 518,400, MfJ 622,050
- 15% Capital Gains start at: Single 40,000, MfJ 80,000
- 20% Capital Gains start at: Single 441,450, MfJ 496,600
- plus 3.8% Medicare surtax (NIIT) on lessor of Net Investment Income or MAGI Single > 200,000, MfJ > 250,000
- Tax on "§1250 gain" depreciation recapture: 25%
- Capital gains tax rate on collectibles: (gold, coins, art, antiques) & Qualified Small Business Stock §1202 : 28%
- Wage Limit for FICA Tax: 137,700
- Monthly transit and parking benefits: 270
2020 Child Related Income Phaseouts Begin
- Adoption Credit Income: 214,520
- Adoption credit amount: 14,300
- Child Tax Credit Income: Single 200,000, MfJ 400,000
- Kiddie Tax exemption §1(g)(4): 2,200
- Unearned income up to 2,200 is taxed at the child’s rate and avoids Kiddie Tax. Income above 2,200 is subject to Kiddie Tax and taxed at the parent’s highest tax rate.
- EITC is Zero @ AGI:
- with 3+ children: Single 50,954, MfJ 56,844
- with 2 children: Single 47,440, MfJ 53,330
- with 1 child: Single 41,756, MfJ 47,646
- with no children: Single 15,820, MfJ 21,710
- EITC Investment Income limit: 3,650
- EITC max credit (Single or MFJ):
- with 3+ children: 6,660
- with 2 children: 5,920
- with 1 child: 3,584
- with no children: 538
- Child Tax Credit: 2,000 per child. (1,400 refundable) (per child under age 17; max refundable: 3 kids).
2020 Medical & Health Care Related Limits
- Flexible Spending Account Contributions: 2,750
- FSA unused carryover amount : 550
- HSA Plan Contributions: Single plan 3,550, Family plan 7,100, Age 55+ catch-up: 1,000
2020 Gift & Estate Limits
- Annual Exclusion: 15,000
- 529 Plan Gifts: 75,000
- Unified Gift & Estate (Lifetime) Exemption: Single 11,580,000, MfJ 23,160,000
- Gift & Estate tax rates: 40%
2020 Education Related Income Phaseouts Begin
- Lifetime Learning Credits: Single 59,000, MfJ 118,000
- American Opportunity Credit: Single 80,000, MfJ 160,000
- Savings Bond Interest exclusion for education: Single 82,350, MfJ 123,550
- American Opportunity Tax Credit (AOTC) (modified HOPE Credit) per Student (1st 4-years of college) (40% refundable: 1,000): 2,500
- Lifetime Learning Credit (20% of 1st $10K tuition) per family: 2,000
2020 Retirement Related Contribution & Income Phaseouts Begin
- Simple Plan contribution limit: 13,500, Age 50+ catch-up: 3,000
- 401-K, 403b, 457 & SAR-SEP contribution limit: 19,500, Age 50+ catch-up: 6,500
- Solo 401-K/SEP/Profit-Sharing total contribution (§415 ) limit: (profit sharing limited to 25% of comp): 57,000, Age 50+ catch-up: 6,500
- IRA & Roth contribution limit: 6,000, Age 50+ catch-up: 1,000
- Roth compensation: Single 124,000, MfJ 196,000
- Traditional IRA compensation, if covered by a plan: Single 65,000, MfJ 104,000, 196,000 (one spouse covered)
- Traditional IRA (non-deductible) compensation: No limit
2020 AMT Exemption Amount & Income Phaseouts Begin
- AMT Exemption: Single 72,900, MfJ 113,400
- AMT Exemption phaseout: Single 518,400, MfJ 1,036,800
- 28% AMT rate starts at AMTI: Single 98,950, MfJ 197,900
2020 Property exempt from levy §6334(a)(2):
- Furniture & Personal Effects: 9,690
- Tools/Books: 4,850
2020 Attorney fee award limitation (per hour) §7430(c)(1)(B)(iii): 210/hour
2020 §179 Property:
- Maximum deduction year placed in service: 1,040,000
- Phase-out threshold (Total equipment purchased): 2,590,000
- TCJA allows 100% first-year "Bonus Depreciation" in Year-1 for qualifying assets placed in-service between September 28, 2017, and December 31, 2022.
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