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 |