2020 Tax Facts

  1. For 2020, the standard deduction is $12,400 for single individuals and to $24,800 for married couples. You'll benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include medical expenses (over 7.5% of AGI), state, local, sales and real estate taxes (up to $10K), mortgage interest, charitable contributions and investment interest expense.
  2. For 2020, the personal exemption is $0.
  3. The maximum earnings subject to social security taxes for 2020 is $137,700.
  4. The standard mileage rate is $.57.5 per business mile for 2020.
  5. The maximum annual contribution into a 401(k) plan or a 403(b) plan is $19,500 for 2020. And if you’re 50 or older by December 31, 2020 you can contribute an extra $6,500 into your 401(k) or 403(b) account this year through salary deferrals.
  6. The maximum contribution into an IRA is $6,000 per individual for 2020. And if you’re 50 or older, you can contribute an extra $1,000 for 2020. You have until April 15, 2021 to contribute to your IRA for 2020.