Dushyant Pandit
dpandit@dorchesteradvisors.com
 
 




2020 Key Numbers

 

Individual Income Tax Planning

Adoption credit

Adoption credit20192020
Maximum credit$14,080 $14,300
Phaseout threshold amount$211,160$214,520
Completed phaseout amount after$251,160 $254,520

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount20192020
Married filing jointly or surviving spouse$111,700 $113,400
Single or head of household$71,700$72,900
Married filing separately$55,850 $56,700
AMT income exemption phaseout threshold20192020
Married filing jointly or surviving spouse$1,020,600 $1,036,800
Single or head of household$510,300$518,400
Married filing separately$510,300$518,400
AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)20192020
All taxpayers except married filing separately$194,800 $197,900
Married filing separately$97,400$98,950

Charitable deductions

Use of auto20192020
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20192020
Low-cost article (re: unrelated business income)$11.10$11.20
Gifts to donor in return for contribution20192020
Token gift maximum cost1$11.10$11.20
Minimum contribution amount1$55.50$56
2% threshold amount2$111$112

1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum

2 Charitable contribution is fully deductible if the benefit received by the donor doesn't exceed the lesser of the threshold amount or 2% of the amount of the contribution

Child tax credit

Amount of credit20192020
Maximum credit per qualifying child$2,000$2,000
Nonrefundable credit for dependents who are not qualifying children$500$500
Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20192020
Single$200,000$200,000
Married Filing Jointly$400,000$400,000
Married Filing Separately$200,000$200,000
Refundability -- up to specified percentage of earned income in excess of specified amount20192020
Percentage15%15%
Amount$2,500$2,500
Maximum refundable amount of credit$1,400$1,400

Classroom expenses of elementary and secondary school teachers

Classroom expense deduction20192020
Maximum above-the-line deduction$250$250

Earned income tax credit (EITC)

Investment income limit20192020
Excessive investment income limit ("disqualified income limit")$3,600 $3,650
Maximum amount of EITC per number of children20192020
0 children$529 $538
1 child$3,526$3,584
2 children$5,828$5,920
3 or more children$6,557$6,660
Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)20192020
0 children$6,920 $7,030
1 child$10,370$10,540
2 or more children$14,570$14,800
Threshold phaseout amount for joint filers per number of children20192020
0 children$14,450 $14,680
1 child$24,820$25,220
2 children$24,820$25,220
3 or more children$24,820$25,220
Threshold phaseout amount for other filers per number of children20192020
0 children$8,650 $8,790
1 child$19,030$19,330
2 children$19,030$19,330
3 or more children$19,030 $19,330
Completed phaseout amount for joint filers per number of children20192020
0 children$21,370 $21,710
1 child$46,884$47,646
2 children$52,493$53,330
3 or more children$55,952$56,844
Completed phaseout amount for other filers per number of children20182020
0 children$15,270 $15,820
1 child$40,320 $41,756
2 children$45,802$47,440
3 or more children$49,194$50,954

Expatriation

Covered expatriate20192020
An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)$168,000 $171,000
IRC §877A(3) exclusion amount$725,000$737,000

Foreign earned income

Amount excluded from income20192020
Exclusion amount$105,900 $107,600

Itemized deductions

Phaseout threshold20192020
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A

Kiddie tax

Unearned income limit20192020
Amount exempt from tax$1,100 $1,100
Additional amount taxed at child's rate$1,100$1,100
Unearned income over this amount taxed at trust and estate income tax rates$2,200$2,200
Parent's election20192020
Election to include child's income on parent's return -- child's gross income requirement$1,100 - $11,000 $1,100 - $11,000
AMT20192020
AMT exemption for child subject to kiddie taxLesser of $7,750 + child's earned income or $71,700 Lesser of $7,900 + child's earned income or $72,900

Medicare tax (additional payroll tax and unearned income contribution tax)

Payroll tax20192020
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20192020
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20192020
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20192020
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20192020
Domestic employee coverage threshold$2,100$2,200

Personal exemption amount

Amount20192020
Personal exemption amountN/A N/A
Married filing jointly20192020
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Head of household20192020
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Unmarried20192020
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Married filing separately20192020
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/AN/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20192020
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20192020
Joint Return$0 - $38,500 $0 - $39,000
Head of Household$0 - $28,875$0 - $29,250
Other$0 - $19,250$0 - $19,500
Applicable percentage of 20% applies to AGI20192020
Joint Return$38,501 - $41,500 $39,001 - $42,500
Head of Household$28,876 - $31,125$29,251 - $31,875
Other$19,251 - $20,750$19,501 - $21,250
Applicable percentage of 10% applies to AGI20192020
Joint Return$41,501 - $64,000 $42,501 - $65,000
Head of Household$31,126 - $48,000$31,876 - $48,750
Other$20,751 - $32,000$21,251 - $32,500
Applicable percentage of 0% applies to AGI20192020
Joint ReturnOver $64,000 Over $65,000
Head of HouseholdOver $48,000Over $48,750
OtherOver $32,000Over $32,500

Standard deductions

Amounts20192020
Married filing jointly or surviving spouse$24,400 $24,800
Head of household $18,350 $18,650
Unmarried$12,200$12,400
Married filing separately$12,200$12,400
Dependent--Standard deduction cannot exceed the greater of:$1,100 or $350 + earned income$1,100 or $350 + earned income
Additional deduction for aged or blind (single or head of household)$1,650$1,650
Additional deduction for aged or blind (all other filing statuses)$1,300 $1,300

Standard mileage rates

Applicable rates 20192020
Use of auto for business purposes (cents per mile)$0.58TBD
Use of auto for medical purposes (cents per mile)$0.20TBD
Use of auto for moving purposes (cents per mile)$0.20TBD


Dorchester Advisors is a Registered Investment Advisor in NJ and NY. This communication is strictly intended for individuals residing in the state(s) of NJ and NY. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.