Yesterday the IRS released inflation adjustments for the 2020 tax year.
The standard deduction for married filing jointly taxpayers is increasing $400 to $24,800. It will be $12,400 ($200 increase) and $18,650 ($300 increase) for single and head of household taxpayers, respectively.
The standard deduction for married filing jointly taxpayers is increasing $400 to $24,800. It will be $12,400 ($200 increase) and $18,650 ($300 increase) for single and head of household taxpayers, respectively.
The annual gift exclusion remains the same at $15,000, but the estate exclusion increases $180,000, up to $11,580,000.
The maximum annual contribution to FSAs (flexible spending arrangements) increases $50 to $2,750.
Tax brackets have also increased: (note the increase amount is based off the high end of the threshold)
The maximum annual contribution to FSAs (flexible spending arrangements) increases $50 to $2,750.
Tax brackets have also increased: (note the increase amount is based off the high end of the threshold)
Except for the 10% threshold, the increases are not as large as they were in the prior year.
For additional changes as a result of the inflation adjustments, see the IRS News Release or view all details included in Revenue Procedure 2019-44.
For additional changes as a result of the inflation adjustments, see the IRS News Release or view all details included in Revenue Procedure 2019-44.
