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| 10% | 0 to $9,875 | |
| 12% | $9,875 to $40,125 | |
| 22% | $40,125 to $85,525 | |
| 24% | $85,525 to $163,300 | |
| 32% | $163,300 to $207,350 | |
| 35% | $207,350 to $518,400 | |
| 37% | Over $518,400 | |
| 2020 Tax Rates – Married Jointly & Surviving Spouses – Standard Deduction $24,800 | ||
| 10% | 0 to $19,750 | |
| 12% | $19,750 to $80,250 | |
| 22% | $80,250 to $171,050 | |
| 24% | $171,050 to $326,600 | |
| 32% | $326,600 to $414,700 | |
| 35% | $414,700 to $622,050 | |
| 37% | Over $622,050 | |
| 2020 Tax Rates – Married Filing Separately – Standard Deduction $12,400 | ||
| 10% | 0 to $9,875 | |
| 12% | $9,875 to $40,125 | |
| 22% | $40,125 to $85,525 | |
| 24% | $85,525 to $163,300 | |
| 32% | $163,300 to $207,350 | |
| 35% | $207,350 to $311,025 | |
| 37% | Over $311,025 | |
| 2020 Tax Rates – Head of Household – Standard Deduction $18,650 | ||
| 10% | 0 to $14,100 | |
| 12% | $14,100 to $53,700 | |
| 22% | $53,700 to $85,500 | |
| 24% | $85,500 to $163,300 | |
| 32% | $163,300 to $207,350 | |
| 35% | $207,350 to $518,400 | |
| 37% | Over $518,400 | |
| 2020 Tax Rates – Estates & Trusts | ||
| 10% | 0 to $2,600 | |
| 24% | $2,600 to $9,450 | |
| 35% | $9,450 to $12,950 | |
| 37% | Over $12,950 | |
| Social Security | 2020 Tax Rates |
| Social Security Tax Rate: Employers | 6.2% |
| Social Security Tax Rate: Employees | 6.2% |
| Social Security Tax Rate: Self-Employed | 15.3% |
| Maximum Taxable Earnings | $137,700 |
| Medicare Base Salary | Unlimited |
| Medicare Tax Rate: Employers | 1.45% |
| Medicare Tax Rate: Employees | 1.45% |
| Additional Medicare Tax for income above $200,000 (single filers) or $250,000 (joint filers) | 0.9% |
| Medicare tax on net investment income ($200,000 single filers, $250,000 joint filers) | 3.8% |
| Miscellaneous | 2020 Tax Rates |
| Business expensing limit: Cap on equipment purchases | $2,590,000 |
| Business expensing limit: New and Used Equipment and Software | $1,040,000 |
| Qualified Business Income threshold amount: | $163,300 (single and head of household); $326,600 (married filing joint return) |
| Qualified Small Employer Health Reimbursement Arrangement limit: | $5,250 (single coverage); $10,450 (family coverage) |
| Prior-year safe harbor for estimated taxes of higher-income | 110% of your 2019 tax liability |
| Standard mileage rate for business driving | 57.5 cents |
| Standard mileage rate for medical driving | 17 cents |
| Standard mileage rate for moving driving – Members of the Armed Forces on active duty who move because of a permanent change of station | 17 cents |
| Standard mileage rate for charitable driving | 14 cents |
| Child Tax Credit | $2,000 |
| Unearned income maximum for children under 19 before kiddie tax applies | $1,100 |
| Maximum capital gains tax rate for taxpayers with income up to $40,000 for single filers, $80,000 for married filing jointly | 0% |
| Maximum capital gains tax rate for taxpayers with income above $40,000 for single filers, $80,000 for married filing jointly | 15% |
| Maximum capital gains tax rate for taxpayers with income above $441,450 for single filers, $496,600 for married filing jointly | 20% |
| Capital gains tax rate for unrecaptured Sec. 1250 gains | 25% |
| Capital gains tax rate on collectibles | 28% |
| Maximum contribution for Traditional/Roth IRA | $6,000 if under age 50 $7,000 if 50 or older |
| Maximum employee contribution to SIMPLE IRA | $13,500 if under age 50 $16,500 if 50 or older |
| Maximum Contribution to SEP IRA | 25% of eligible compensation up to $57,000 |
| 401(k) maximum employee contribution limit | $19,500 if under age 50 $26,000 if 50 or older |
| Estate tax exemption | $11,580,000 |
| Annual Exclusion for Gifts | $15,000 |
| Education | 2020 Tax Rates |
| American Opportunity Credit (Hope) | $2,500 |
| Lifetime Learning Credit | $2,000 |
| Student Loan Interest Deduction | $2,500 |
| Coverdell Education Savings Contribution | $2,000 |
| Source: IRS Revenue Procedure 2019-44 |
| Standard Meal Rates for Family Child Care Providers for income tax returns | |
| Continental U.S. | 2020-21 Tax Rates (July 1, 2020-June 30, 2021) |
| For each breakfast | $1.39 |
| For each lunch or supper | $2.61 |
| For each snack (up to 3 per day for each child) | $0.78 |
| Alaska | 2020-21 Tax Rates (July 1, 2020-June 30, 2019) |
| For each breakfast | $2.22 |
| For each lunch or supper | $4.24 |
| For each snack (up to 3 per day for each child) | $1.26 |
| Hawaii | 2020-21 Tax Rates (July 1, 2020-June 30, 2021) |
| For each breakfast | $1.62 |
| For each lunch or supper | $3.06 |
| For each snack (up to 3 per day for each child) | $0.91 |
| Source: Federal Register | |
Tax Artisans An Accountancy Corporation
150 S. Los Robles Ave., Suite 860
Pasadena, CA 91101
Office: 626-662-1175
Fax: 626-628-1188