The following tables show the annual inflation adjustments for the 2020 federal tax rates.
Filing Rates |
||||
| Individual Tax Rate | Married Filing Jointly (MFJ) | Single | Married Filing Separately | Head of Household |
| 10% | Up to $19,750 | Up to $9,875 | Up to $9,875 | Up to $14,100 |
| 12% | $19,751 – $80,250 | $9,876 – $40,125 | $9,876 – $40,125 | $14,101 – $53,700 |
| 22% | $80,251 – $171,050 | $40,126 – $85,525 | $40,126 – $85,525 | $53,701 – $85,500 |
| 24% | $171,051 – $326,600 | $85,526 – $163,300 | $85,526 – $163,300 | $85,501 – $163,300 |
| 32% | $326,601 – $414,700 | $163,301 – $207,350 | $163,301 – $207,350 | $163,301 – $207,350 |
| 35% | $414,701 – $622,050 | $207,351 – $518,400 | $207,351 – $311,025 | $207,351 – $518,400 |
| 37% | More than $622,050 | More than $518,400 | More than $311,025 | More than $518,400 |
Standard Deduction |
|
| Standard deduction — single and married filing separately | $12,400 |
| Additional deduction age 65 or older — single | $1,650 |
| Standard deduction — married filing jointly | $24,800 |
| Additional deduction age 65 or older — married filing jointly and married filing separately | $1,300 |
| Standard deduction — head of household | $18,650 |
| Additional deduction age 65 or older — head of household | $1,650 |
Retirement Plan |
|
| Maximum annual benefit for defined benefit plan | Up to $230,000 |
| Defined contribution annual addition | $57,000 |
| Defined contribution compensation limit | $285,000 |
| 401(k) maximum exclusion | $19,500 |
| 401(k) catch-up contribution (for individuals 50 or older) | $6,500 |
| SIMPLE contribution limit | $13,500 |
| SIMPLE catch-up contribution (for individuals 50 or older) | $3,000 |
| IRA contribution limitation (in general) | $6,000 |
| IRA catch-up contribution (for individuals 50 or older) | $1,000 |
Payroll Taxes |
|
| Social Security (self-employed) combined rate (OASDI + Medicare) | (6.2% + 1.45%) x 2 = 15.3% |
| Social Security (employee) rate (OASDI + Medicare) | (6.2% + 1.45%) = 7.65% |
| OASDI contribution base | $137,700 |
| Medicare contribution base | Unlimited |
| Additional Medicare payroll tax on earnings more than $200,000 (single) and $250,000 (combined, married filing jointly) | 0.90% |
| FUTA wage base | $7,000 |
| FUTA rate | 6% |
Social Security |
|
| Under full retirement age | $18,240 |
| In the year you reach full retirement age | $48,600 |
| Full retirement age | No limit |
Education Phase-Outs |
|
| American Opportunity Credit (formerly Hope Credit) | MFJ: $160,000 – $180,000 Other filers: $80,000 – $90,000 |
| Lifetime Learning Credit | MFJ: $118,000 – $138,000 Other filers: $59,000 – $69,000 |
| Student loan interest deduction
|
MFJ: $140,000 – $170,000 Single: $70,000 – $85,000 |
Health Savings Accounts |
|
| HSA contribution limit (single insurance coverage) | $3,550 |
| HSA contribution limit (family insurance coverage) | $7,100 |
| HSA catch-up contribution (age 55 or older) | $1,000 |
179 Limitation, Gift and Estate Tax Exclusions, and Kiddie Tax |
|
| Section 179 limitation | $1,040,000 |
| Annual gift tax exclusion | $15,000 |
| Estate tax exclusion amount | $11,580,000 |
Travel |
|
| High cost per diem travel rate within continental United States (high/low method) | $297 |
| Low cost per diem travel rate within continental United States (high/low method) | $200 |
Mileage Rates |
|
| Business | $0.575 |
