IRS Releases Inflation Adjustments for 2020
11.7.19 | The IRS announced annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules, and other tax changes.
The tax year 2020 adjustments are generally used on tax returns filed in 2021.
Here are the highlights:
- Marginal tax rates are unchanged for 2020, but brackets have been adjusted for inflation.
- Standard deductions have increased to $24,800 if MFJ while the personal exemption remains at zero.
- Various thresholds were also adjusted for inflation, including the thresholds for the foreign earned income exclusion, estate exclusion, and Lifetime Learning Credit.
- Various exemptions and limits were also adjusted, including the exemption for the Alternative Minimum Tax.
For complete details, check out the news release.