Tax Brackets and Rates
2020
Federal Income Tax Brackets and Rates
| Rate | For Single Individuals, Taxable Income Over | For Married Individuals Filing Joint Returns, Taxable Income Over | For Heads of Households, Taxable Income Over |
| 10% | $0 | $0 | $0 |
| 12% | $9,875 | $19,750 | $14,100 |
| 22% | $40,125 | $80,250 | $53,700 |
| 24% | $85,525 | $171,050 | $85,500 |
| 32% | $163,300 | $326,600 | $163,300 |
| 35% | $207,350 | $414,700 | $207,350 |
| 37% | $518,400 | $622,050 | $518,400 |
| Source: Internal Revenue Service | |||
Standard Deduction and Personal Exemption
The standard deduction for single filers will increase by $200, and by $400 for married couples filing jointly.
The personal exemption for 2020 remains eliminated.
| Filing Status | Deduction Amount |
| Single | $12,400 |
| Married Filing Jointly | $24,800 |
| Head of Household | $18,650 |
| Source: Internal Revenue Service | |
Annual Exclusion for Gifts
In 2020, the first $15,000 of gifts to any person is excluded from tax. The exclusion is increased to $157,000 for gifts to spouses who are not citizens of the United States.
Child Tax Credit
The child tax credit totals at $2,000 per qualifying child and is not adjusted for inflation. However, the refundable portion of the Child Tax Credit is adjusted for inflation but will remain at $1,400 for 2020.
Earned Income Tax Credit
The maximum Earned Income Tax Credit in 2020 for single and joint filers is $538, if there are no children. The maximum credit is $3,584 for one child, $5,920 for two children, and $6,660 for three or more children. All these are relatively small increases from 2019.
| Filing Status | No Children | One Child | Two Children | Three or More Children | |
|
Single or Head of Household
|
Income at Max Credit | $7,030 | $10,540 | $14,800 | $14,800 |
| Maximum Credit | $538 | $3,584 | $5,920 | $6,660 | |
| Phaseout Begins | $8,790 | $19,330 | $19,330 | $19,330 | |
| Phaseout Ends (Credit Equals Zero) | $15,820 | $41,756 | $47,440 | $50,954 | |
|
Married Filing Jointly
|
Income at Max Credit | $7,030 | $10,540 | $14,800 | $14,800 |
| Maximum Credit | $538 | $3,584 | $5,920 | $6,660 | |
| Phaseout Begins | $14,680 | $25,220 | $25,220 | $25,220 | |
| Phaseout Ends (Credit Equals Zero) | $21,710 | $47,646 | $53,330 | $56,844 | |
| Source: Internal Revenue Service | |||||