The IRS recently extended the deadline for all federal tax returns and payments to May 17, 2021. The standard deduction for 2020 increased to $12,400 for single filers and $24,800 for married couples filing jointly. Income tax brackets increased in 2020 to account for inflation.
The new tax law nearly doubles the standard deduction amount. Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,200 for 2019 taxes (the ones you file in 2020). Married couples filing jointly see an increase from $12,700 to $24,400 for 2019.
Business taxpayers should recalculate estimated tax payments
The new law changed tax rates and brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the Child Tax Credit and limited or discontinued certain deductions.
In tax year 2020, the IRS is also raising the standard deduction to $12,400 for individuals (from $12,200) and to $24,800 for married joint filers (from $24,400). The standard deduction has become more important than ever since 2018, when it rose to a high enough level that many taxpayers chose to stop itemizing.
Another reason why some folks refund is actually less than the amount they were expecting or provided by their e-filing tool is that the federal government has “offset” or deducted monies from your tax refund to cover debts you owe other federal agencies.
20 popular tax deductions and tax credits for individuals
Updated for Tax Year 2019
You can stop filing income taxes at age 65 if: You are a senior that is not married and make less than $13,850.
TurboTax and H&R Block updated their online software to account for a new tax break on unemployment benefits received in 2020. The American Rescue Plan, a $1.9 trillion Covid relief bill signed this month by President Joe Biden, waived federal tax on up to $10,200 of jobless benefits per person.
For those who are single (or married filing separately), the standard deduction for 2020 is increasing $200 to $12,400. ... With an increase in the standard deduction, we may see even fewer people itemize deductions in 2020. Many homeowners will still find it beneficial to itemize their tax deductions.
President Trump then signed the bill into law on Dec. 22, 2017. Most of the tax changes in the TCJA went into effect in January 2018, for the 2018 tax year. That means the changes didn't affect many 2017 tax returns (you filed 2017 taxes in early 2018).
giving property tax breaks to corporations. reducing the minimum wage. decreasing the sales tax. exempting individuals from income taxes.
Among other reforms, the new law changed the tax rates and brackets, revised business expense deductions, increased the standard deduction, removed personal exemptions, increased the child tax credit and limited or discontinued certain deductions.
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