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These Are the 2020 Tax Brackets

These Are the 2020 Tax Brackets

The IRS launched the federal tax charges and earnings brackets for 2020 right now. The seven tax charges themselves stay the identical as they had been in 2019; nonetheless, the earnings limits for every have been adjusted to account for inflation over the course of the 12 months.

These charges will affect what you pay on the earnings you earn in 2020 that you just file taxes for in 2021. It may be good to notice now what tax bracket you’re prone to fall in, particularly in case you’re a freelancer or earn cash by a gig job, the place you’ll be chargeable for paying estimated taxes all year long.

And take into account that these charges are additionally only for federal taxes. Your state may modify its tax price for 2020 as effectively, so you need to take note of that.

For married people submitting collectively:

10%: As much as $19,750

12%: Earnings between $19,750 to $80,250

22%: Earnings between $80,250 to $171,050

24%: Earnings between $171,050 to $326,600

32%: Earnings between $326,600 to $414,700

35%: Earnings between $414,700 to $622,050

37%: Earnings over $622,050

For single people:

10%: As much as $9,875

12%: Earnings between $9,875 to $40,125

22%: Earnings between $40,125 to $85,525

24%: Earnings between $85,525 to $163,300

32% Earnings between $163,300 to $207,350

35%: Earnings between $207,350 to $518,400

37%: Earnings over $518,400

For heads of households:

10%: As much as $14,100

12%: Earnings between $14,100 to $53,700

22%: Earnings between $53,700 to $85,500

24%: Earnings between $85,500 to $163,300

32%: Earnings between $163,300 to $207,350

35%: Earnings between $207,350 to $518,400

37%: Earnings over $518,400

For married people submitting individually:

10%: As much as $9,875

12%: Earnings between $9,875 to $40,125

22%: Earnings between $40,125 to $85,525

24%: Earnings between $85,525 to $163,300

32%: Earnings between $163,300 to $207,350

35% Earnings between $207,350 to $311,025

37%: Earnings over $311,025

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