Standard Deduction Exception Summary for Tax Year 2020 If you are age 65 or older, your standard deduction increases by $1,650 if you file as Single or Head of Household. by Megan Russell on November 24, 2020 with No Comments. The federal tax brackets are broken down into seven (7) taxable income groups, based on your filing status. The IRS announced the standard deduction amount for the taxes filed in 2020. Cumulative Growth of a $10,000 Investment in Stock Advisor, Here's the 2020 IRS Standard Deduction -- And What It Means to You @themotleyfool #stocks, Zions Bancorporation (ZION) Q4 2020 Earnings Call Transcript, Netflix (NFLX) Q4 2020 Earnings Call Transcript, These 3 Companies Will Be Robinhood Stocks in 2021, JB Hunt Transport Services Inc. (JBHT) Q4 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information, State and local taxes (SALT), including property taxes and state income. For the majority of Americans, itemizing is not worthwhile, and that's especially true now, thanks to the higher standard deductions that the Tax Cuts and Jobs Act put in place. You can deduct the amount of the tax year's standard deduction from your taxable income on line 12 of your 2020 Form 1040 tax return. Starting in 2018, the TCJA (Tax Cuts and Jobs Act of 2017) capped the property tax deduction. For 2020, the additional standard deduction amount for the aged or the blind is $1,300. To be clear, this is the amount of your adjusted gross income (AGI) that you can exclude from federal income taxes. Here are the 2020 standard deductions amounts for each filing status: There is an additional standard deduction of $1,300 for taxpayers who are over age 65 or blind. The standard deduction applies to the tax year, not the year in which you file. Des Moines, Iowa – The Iowa Department of Revenue has finalized the 2020 interest rate, individual income tax brackets, and individual income tax standard deduction amounts for the 2020 tax year (applicable for taxes due in 2021). Alicia Adamczyk @AliciaAdamczyk. The amount of the additional standard deduction increases to $1,650 for taxpayers who are unmarried. If the taxpayer or spouse is legally blind and/or born before January 2, 1953, the following additions are added to the standard deduction for each occurrence: $1,250 for Married Filing Joint or Separate and Qualifying Widow (er) filers. There are several itemizable tax deductions, but the bulk of most taxpayers' deductions come from the "big four": For most Americans, adding up these four deductions can be a good indicator of whether itemizing will be worthwhile. Matt is a Certified Financial Planner based in South Carolina who has been writing for The Motley Fool since 2012. In a nutshell, it means you'll get to exclude a little bit more of your money from taxation next year. In 2020 for example, single taxpayers and married taxpayers who file separate returns can claim a $12,400 standard deduction. (1) Single (and cannot be claimed as a dependent on another taxpayer's federal return) $8,000. In general, 2020 personal income tax returns are due by April 15, 2021. If you're in the 22% tax bracket and single, this means that you'll save $44 as compared with the 2019 standard deduction. For 2020, the standard deduction is rising by $200 to $400, depending on your filing status. COVID Relief FAQs. Under federal guidelines, if you are 65 or older and single or a head of household, your standard deduction goes up $1,650 for 2020. There are five standard deductions, based on your filing status and if … Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. For 2020, the standard deduction amounts are as follows: Taxpayers who are at least 65 years old or blind can claim an additional 2020 standard deduction of $1,300 ($1,650 if using the single … Even so, the higher 2020 standard deduction should help keep a little more money in your pocket. For single taxpayers and married individuals … This gives you a total of $15,000 of itemizable deductions, which is substantially less than the $24,800 standard deduction to which you'd be entitled. This is the standard deduction for 2020. For single or married filing separately — $12,200 2. So it's likely that you'll use the standard deduction on your 2020 tax return. Returns as of 01/20/2021. Use our simple IRS search, 2020 Federal Tax Rates, Brackets, & Standard Deductions, $4,617.50 + 22% of the amount over $40,125, $14,605.50 + 24% of the amount over $85,525, $33,271.50 + 32% of the amount over $163,300, $47,367.50 + 35% of the amount over $207,350, $156,235 + 37% of the amount over $518,400, $29,211 + 24% of the amount over $171,050, $66,543 + 32% of the amount over $326,600, $94,735 + 35% of the amount over $414,700, $167,307.50 + 37% of the amount over $622,050, $33,271.50 + 32% of the amount of $163,300, $31,830 + 32% of the amount over $163,300, $45,926 + 35% of the amount over $207,350, $154,793.50 + 37% of the amount over $518,400, Married Filing Jointly or Qualifying Widow(er). The IRS recently announced the updated standard deduction for 2020, so here's what yours will be and what it will mean. In 2019, it increases by $… About Us. Standard deduction amount. If you are looking for 2019 tax rates, you can find them HERE. Filing Status: Standard Deduction 2020: 65 years and older or blind: Single: $12,400: Add $1,650: Married filing jointly: $24,800: Add $1,300: Head of household The 2020 standard deduction amounts for federal income taxes have risen slightly because of inflation. Standard Deduction 2020 Below is the checklist of Internal Revenue Service (IRS) standard deductions for 2020 to be submitted on the next year of 2021, based upon your filing status: Single taxpayers receive $12,400 of deductions, which is a raise from $12,200 in the previous year.

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