2020 Tax Updates

Federal Income Tax Brackets

Rate Single Married Head of household
10%
$0-9,875
$0-$19,750
$0-14,100
12%
$9,876-$40,125
$19,751-$80,250
$14,101-$53,701
22%
$40,126-$85,525
$80,251-$171,050
$53,701-$85,500
24%
$85,526-$163,300
$171,051-$326,600
$85,501-$163,300
32%
$163,301-$207,350
$326,601-$414,700
$163,301-$207,350
35%
$207,351-$518,400
$414,701-$622,050
$207,350-$518,400
37%
>$518,401
>$622,051
>$518,401

 

Standard Deductions

Filing Status Deduction Amount
Single $12,400
Married $24,800
Head of Household $18,650

 

*Please note Advizr uses the standard deduction for all plans. There are no itemized deductions in Advizr. 

Capital Gains Tax Rates

  Individuals Married Head of Household
0% $0 $0 $0
15% $40,000 $80,000 $53,600
20% $441,450 $496,600 $469,050


Social Security Limits

  2020
Maximum Taxable Earnings  
Social Security Income Earnings Limit $137,700
Earnings Test Annual Exempt Amount  
Under Full Retirement Age for Entire Year $18,240

For Months Before Reaching Full Retirement Age in Given Year

$48,600

Beginning with Month Reaching Full Retirement Age

No limit

 

Account Contribution Limits

  2020
RETIREMENT PLANS  
Annual Compensation Limits - 401(a)(17)/404(l) 285,000
Elective Deferrals 401(k)/403(b) - 402(g)(1) 19,500
Catch-up Contributions - 414(v)(2)(B)(i) 6,500
457 Elective Deferrals - 457(e)(15) 19,500
Defined Contribution Limits - 415(c)(1)(A) 57,000
IRAs  
IRA Contribution Limit - 219(b)(5)(A) 6,000
IRA Catch-Up Contributions - 219(b)(5)(B) 1,000
SEP  
SEP Minimum Compensation - 408(k)(2)(C) 600
SEP Maximum Compensation - 408(k)(3)(C) 285,000
SIMPLE Plans  
SIMPLE Maximum Contributions - 408(p)(2)(E) 13,500
SIMPLE Catch-up Contributions - 414(v)(2)(B)(ii) 3,000

Note: Advizr has been updated to reflect the SECURE Act, changing RMD age from 70 1/2 to 72, and being able to contribute to a Traditional IRA past 70 1/2 if still working.