| | Individual Income Tax Planning
Adoption credit
| Adoption credit | 2019 | 2020 |
|---|
| 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 amount | 2019 | 2020 |
|---|
| 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 threshold | 2019 | 2020 |
|---|
| 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) | 2019 | 2020 |
|---|
| All taxpayers except married filing separately | $194,800
| $197,900
| | Married filing separately | $97,400 | $98,950 |
Charitable deductions
| Use of auto | 2019 | 2020 |
|---|
| Deductible standard mileage rate | $0.14 | $0.14 |
| Charitable fundraising "insubstantial benefit"
limitation | 2019 | 2020 |
|---|
| Low-cost article (re: unrelated business income) | $11.10 | $11.20 |
| Gifts to donor in return for contribution | 2019 | 2020 |
|---|
| 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 credit | 2019 | 2020 |
|---|
| 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: | 2019 | 2020 |
|---|
| 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 amount | 2019 | 2020 |
|---|
| Percentage | 15% | 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 deduction | 2019 | 2020 |
|---|
| Maximum above-the-line deduction | $250 | $250 |
Earned income tax credit (EITC)
| Investment income limit | 2019 | 2020 |
|---|
| Excessive investment income limit ("disqualified income
limit") | $3,600
| $3,650
|
| Maximum amount of EITC per number of children | 2019 | 2020 |
|---|
| 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) | 2019 | 2020 |
|---|
| 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
children | 2019 | 2020 |
|---|
| 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
children | 2019 | 2020 |
|---|
| 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
children | 2019 | 2020 |
|---|
| 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
children | 2018 | 2020 |
|---|
| 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 expatriate | 2019 | 2020 |
|---|
| 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 income | 2019 | 2020 |
|---|
| Exclusion amount | $105,900
| $107,600
|
Itemized deductions
| Phaseout threshold | 2019 | 2020 |
|---|
| Married filing jointly | N/A | N/A | | Head of household | N/A | N/A | | Unmarried | N/A | N/A | | Married filing separately | N/A | N/A |
Kiddie tax
| Unearned income limit | 2019 | 2020 |
|---|
| 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 election | 2019 | 2020 |
|---|
| Election to include child's income on parent's return --
child's gross income requirement | $1,100 - $11,000
| $1,100 - $11,000
|
| AMT | 2019 | 2020 |
|---|
| AMT exemption for child subject to kiddie tax | Lesser 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 tax | 2019 | 2020 |
|---|
| Additional Medicare payroll tax (and self-employment tax)
percentage rate | 0.90% | 0.90% |
| Applies to wages/self-employment income exceeding | 2019 | 2020 |
|---|
| Individuals | $200,000 | $200,000 | | Married filing jointly
| $250,000 | $250,000 | | Married filing separately | $125,000 | $125,000 |
| Tax on unearned income | 2019 | 2020 |
|---|
| Unearned income Medicare contribution tax rate | 3.80% | 3.80% |
| Applies to lesser of (a) net investment income or (b)
modified adjusted gross income exceeding | 2019 | 2020 |
|---|
| Individuals | $200,000 | $200,000 | | Married filing jointly
| $250,000 | $250,000 | | Married filing separately | $125,000 | $125,000 |
Nanny tax
| Compensation threshold | 2019 | 2020 |
|---|
| Domestic employee coverage threshold | $2,100 | $2,200 |
Personal exemption amount
| Amount | 2019 | 2020 |
|---|
| Personal exemption amount | N/A
| N/A
|
| Married filing jointly | 2019 | 2020 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
|
| Head of household | 2019 | 2020 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
|
| Unmarried | 2019 | 2020 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A
| N/A
|
| Married filing separately | 2019 | 2020 |
|---|
| Phaseout threshold amount | N/A
| N/A
| | Completed phaseout amount after | N/A | N/A |
"Saver's Credit"
| Elective Deferrals and IRA or ABLE Contributions by Certain
Individuals | 2019 | 2020 |
|---|
| Maximum credit amount | $1,000 | $1,000 |
| Applicable percentage of 50% applies to AGI | 2019 | 2020 |
|---|
| 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 AGI | 2019 | 2020 |
|---|
| 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 AGI | 2019 | 2020 |
|---|
| 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 AGI | 2019 | 2020 |
|---|
| Joint Return | Over $64,000
| Over $65,000
| | Head of Household | Over $48,000 | Over $48,750 | | Other | Over $32,000 | Over $32,500 |
Standard deductions
| Amounts | 2019 | 2020 |
|---|
| 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
| 2019 | 2020 |
|---|
| Use of auto for business purposes (cents per mile) | $0.58 | TBD | | Use of auto for medical purposes (cents per
mile) | $0.20 | TBD | | Use of auto for moving purposes (cents per mile) | $0.20 | TBD |
|