Tax Reference Guide - 2020 Calendar Year

The information presented below is subject to change. Contact your Worth Tax Advisor to discuss the potential application to your particular situation.

Ordinary income tax rates

Tax Rate Single Filer Head of Household Married Filling Jointly Married Filling Separately
10% $0+ $0+ $0+ $0+
12% $9,875+ $14,100+ $19,750+ $9,875+
22% $40,125+ $53,700+ $80,250+ $40,125+
24% $85,525+ $85,500+ $171,050+ $85,525+
32% $163,300+ $163,300+ $326,600+ $163,300+
35% $207,350+ $207,350+ $414,700+ $207,350+
37% $518,400+ $518,400+ $622,050+ $311,025+

Long-term capital gains and qualified dividends

Tax Rate Single Filer Head of Household Married Filling Jointly Married Filling Separately
0% $0+ $0+ $0+ $0+
15% $40,000+ $53,600+ $80,000+ $40,000+
20% $441,550+ $469,050+ $496,600+ $248,300+

General tax benefits

  Tax Benefit Thresholds
Standard deduction
Single and married filing separately $12,400
Head of household $18,650
Married filing jointly $24,800
Additional deduction for aged or blind $1,300
Additional deduction for unmarried aged or blind $1,650
Deduction if you can be claimed by another
(or $350 plus earned income if greater)
$1,100
Transportation Fringe Benefit
Transit $270
Parking $270
Standard Mileage Rates
Business Not Published as of 12/27/2019
Charity (not indexed) Not Published as of 12/27/2019
Medical/moving Not Published as of 12/27/2019
Kiddie Tax (Unearned Income)
First $1,100 not taxed $0+
Next thousand taxed at child’s rate $1,100+
Over $2,200 taxed at parent’s rate $2,200+
Adoption benefits
Adoption credit $14,300
Employer adoption benefit income exclusion $14,300
Expatriation
Average income threshold for determining if subject to tax $171,000
Exclusion from tax $737,000
Foreign earned income exclusion
Per person $105,900
Retirement accounts
401(k)/403(b) deferrals $19,500
401(k)/403(b) catch-up deferral $6,500
IRA contribution $6,000
IRA catch-up contributions $1,000

Medicare and Social Security rate change thresholds

  Rate Change Thresholds
Social Security wage cap (earned income)
Per individual $137,700
Threshold for additional 0.9% Medicare tax (earned income)
Single (not indexed) $200,000
Threshold for 3.8% Medicare tax on investment income (AGI)
Single (not indexed) $200,000
Joint (not indexed) $250,000
Trusts and estates $12,950

2020 filing deadlines for the 2019 calendar year

  Original Extension
Partnerships (Form 1065) March 16 September 15
S corporations (Form 1120-S) March 16 September 15
C corporations (Form 1120) April 15 October 15
Trusts (Form 1041) April 15 September 30
Individuals (Form 1040) April 15 October 15

Qualified retirement plans: 401(k), 403(b) and most 457 plans

  Contribution Limits
Maximum employee contribution/deferral $19,500
Catch-up employee contribution/deferral (age 50 and older) $6,500
Maximum combined employer and employee contributions to a defined contribution plan $57,000
Maximum annual benefit in a defined benefit plan $230,000
Limit on compensation under 401(a)(17) that can be
considered in calculating contributions to qualified plans
$285,000
Limit on compensation under 401(a)(17) for grandfathered
employees for governmental plans under OBRA ’93
$425,000
Threshold for designation as “highly compensated employee”
for nondiscrimination testing
$130,000
Definition of key employee in a top-heavy plan $185,000

Individual retirement account (IRA) contribution limits

  Contribution Limits
Traditional and Roth IRA $6,000
Traditional and Roth IRA catch-up contribution (age 50 and older) $1,000
SIMPLE IRA $13,500
SIMPLE IRA catch-up contribution (age 50 and older) $3,000
SEP IRA (only employer may contribute)* $57,000
Minimum compensation required to participate in SEP $600
Maximum compensation for calculating contributions $285,000

C corporation income tax brackets (not indexed)

Tax Rate
21% Flat Tax Rate