10 Jan 2020 Income Tax Brackets: Where You Fall and What it Means
Getting the most out of your taxable income means planning ahead. While you’re probably gearing up for your 2019 return, now is the best time to start planning for your 2020 return. One good way to get started is to familiarize yourself with the 2020 income tax brackets.
The IRS makes changes to its tax brackets every year to adjust for inflation or keep tax equitable for most. If you have an estimate of where your income will fall by the end of this year, then you’ll make great use of these brackets. We’ve also gone over more 2020 tax changes in a previous article if you want to read it.
2020 Income Tax Brackets for Single and Married Taxpayers
|Tax Rate||Taxable Income - Single||Taxable Income - Married Filing Joint|
The numbers have changed slightly from 2019’s income tax brackets, but that’s mostly to adjust for inflation. Additionally, the income amounts double if you’re married filing jointly for most brackets. If you make over $518,400, though, the taxable amount only increases by $100,00 if you’re married filing jointly. As such, it may be more advantageous in that case for a married couple to file separately.
Of course, you won’t know your actual income until Dec. 31 this year, but that doesn’t mean you can make an educated guess. Looking at income from previous years (if you’re a business owner) or noting your salary can give you a good idea of what to expect. This way, you can better plan what you allocate for taxes so you’re not stuck with a massive bill.
2020 Income Tax Brackets for Heads of Household
|Tax Rate||Taxable Income for Heads of Household|
Here are the brackets for heads of household. It’s worth noting that the numbers are very similar to taxpayers filing individually, with the latter half being identical. Keep that in mind if you’re filing as a head of household. That said, you’ll still have access to a higher standard deduction, so it’s often better to file that way overall than filing individually. There are specific qualifications you need to meet to file as head of household, so learn more by clicking this link.
Need Help Planning Your Taxes?
If you want help planning your 2020 taxes or need some help filing your 2019 return, then give us a call at 614-524-4888!