2020 IRS Tax Brackets! Tax Law Changes

Last Updated on December 11, 2020 by
New tax laws for 2020

As a result of inflation, the IRS adjusts tax brackets to account for that as a way of eliminating what is known as bracket creep. This year (2020) round, it all looks like Indexing has increased the income brackets by roughly 2% across the board as per IRS.

If you are wondering what the IRS tax brackets are for 2020, they are shown below in the table. Take your time and go through it so you can get to know what you have been searching for.

New rates for Federal Income Tax brackets 2020

Tax Bracket / Filing StatusSingleMarried Filing Jointly or Qualifying WidowMarried Filing SeparatelyHead of Household
10%$0 to $9,700$0 to $19,400$0 to $9,700$0 to $13,850
12%$9,701 to $39,475$19,401 to $78,950$9,701 to $39,475$13,851 to $52,850
22%$39,476 to $84,200$78,951 to $168,400$39,476 to $84,200$52,851 to $84,200
24%$84,201 to $160,725$168,401 to $321,450$84,201 to $160,725$84,201 to $160,700
32%$160,726 to $204,100$321,451 to $408,200$160,726 to $204,100$160,701 to $204,100
35%$204,101 to $510,300$408,201 to $612,350$204,101 to $306,175$204,101 to $510,300
37%$510,301 or more$612,351 or more$306,176 or more$510,301 or more

Each income tax bracket corresponds to a particular tax rate. For example, if your income is $84,200, your tax rate isn’t a flat 22%. See chart above to see all the tax brackets with their corresponding tax rate.

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What’s been eliminated?

  • Finding a new job or call it job search fees.
  • Tax prepositional fees.
  • Contributions in form of Charity.

Will post an update on the same post on how to exactly tax brackets work and how you can get into a lower tax bracket and pay a lower federal income tax rate below and more on 2020 tax brackets.

2020 IRS Tax Brackets! Tax Law Changes

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