Here are your new income tax brackets for 2020

Published Wed, Nov 6 201912:23 PM EST Updated Wed, Nov 6 20193:56 PM EST

Alicia Adamczyk @ALICIAADAMCZYK

The IRS released the federal tax rates and income brackets for 2020 on Wednesday. The seven tax rates remain unchanged, while the income limits have been adjusted for inflation.

Tax rates in the U.S. are marginal, meaning that different levels of the same person’s income are taxed at different rates. If you and your spouse earn $80,000 in 2020 and are married filing jointly, for example, the first $19,750 of that will be taxed at 10%, and the income over $19,750 will be taxed at 12%.

The 2020 tax brackets affect the taxes that will be filed in 2021. These are the 2019 brackets.

Here are the new brackets for 2020, depending on your income and filing status.

For married individuals filing jointly:

·    10%: Taxable income up to $19,750

·    12%: Income between $19,750 to $80,250

·    22%: Income between $80,250 to $171,050

·    24%: Income between $171,050 to $326,600

·    32%: Income between $326,600 to $414,700

·    35%: Income between $414,700 to $622,050

·    37%: Income over $622,050

For unmarried individuals:

·    10%: Up to $9,875

·    12%: Income between $9,875 to $40,125

·    22%: Income between $40,125 to $85,525

·    24%: Income between $85,525 to $163,300

·    32% Income between $163,300 to $207,350

·    35%: Income between $207,350 to $518,400

·    37%: Income over $518,400

For heads of households:

·    10%: Up to $14,100

·    12%: Income between $14,100 to $53,700

·    22%: Income between $53,700 to $85,500

·    24%: Income between $85,500 to $163,300

·    32%: Income between $163,300 to $207,350

·    35%: Income between $207,350 to $518,400

·    37%: Income over $518,400

For married individuals filing separately:

·    10%: Up to $9,875

·    12%: Income between $9,875 to $40,125

·    22%: Income between $40,125 to $85,525

·    24%: Income between $85,525 to $163,300

·    32%: Income between $163,300 to $207,350

·    35% Income between $207,350 to $311,025

·    37%: Income over $311,025

The IRS also released information on the 2020 standard deduction.

These are the rates and income brackets for federal taxes. Your state may have different brackets, no taxes at all or a flat rate.

Credit:  CNBC Make It

Published Wed, Nov 6 201912:23 PM ESTUpdated Wed, Nov 6 20193:56 PM ESTAlicia Adamczyk@ALICIAADAMCZYK

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