Updated: Feb 4, 2021
For tax year 2020, there are seven tax rates: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The tax brackets adjusted for inflation and the tax owed for different filing statuses are listed below (Source: IRS).
1. Tax Rates & Brackets
Married Filing Jointly and Surviving Spouse
Married Filing Separately
Head of Household
The tax rates for trusts and estates are 10%, 24%, 35%, and 37%. The tax brackets and tax owed are as follows:
Trusts and Estates
2. Adjusted Standard Deduction
The standard deduction for single taxpayers and those married filing separately increased by $200 to $12,400. For taxpayers who have married filing jointly, the standard deduction increased by $400 to $24,800, and for heads of the household the amount increased by $300 to $18,650
For taxpayers who are 65 years old or older, the standard deduction amounts have been increased. For single filers and head of household filers, the standard deduction increases by $1,650. For those married filing jointly, the standard deduction increases by $1,300 (if one spouse is 65 or older) and $2,600 (if both spouses are 65 or older).
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