![]() Taxpayers Filing Joint Returns, Head of Household, or Qualifying Widows/Widowers The maximum contribution to Individual Retirement Accounts (IRAs) remains unchanged at $6,000 ($7,000 for employees aged 50 and over).2022 Maryland Income Tax Rates Taxpayers Filing as Single, Married Filing Separately, Dependent Taxpayers or Fiduciaries ![]() In 2020, the contribution limit for employees who participate in 401(k) plans will increase by $500 to $19,500, and the catch-up contribution limit for employees aged 50 and over who participate in these plans will increase from $6,000 to $6,500. The Catchup Maximum Contribution Limit for taxpayers aged 55 and older remains unchanged at $1,000. Maximum contributions to Health Savings Accounts (HSAs) will be $3,550 (up $50 from 2019) for taxpayers insured with self-only coverage and $7,100 for taxpayers with family coverage (up $100 from 2019). The refundable portion that can be given to a taxpayer with no tax liability is indexed but will remain at $1,400. The Child Tax Credit, which is not indexed, will remain at $2,000. The exclusion is essentially doubled for married couples, so a couple could pass down $23.2 million before being subject to the estate tax. The estate tax exclusion for calendar year 2020 will be $11.58 million, up from $11.4 million in calendar year 2019. This means the first $15,000 in gifts received are tax-free. Table 5: 20 Earned Income Tax Credit Parameters Filing StatusĢ019 Single, Married Filing Jointly, or Head of HouseholdĢ020 Single, Married Filing Jointly, or Head of Householdįor calendar year 2020, the gift tax exclusion will be $15,000, the same as in calendar year 2019. The maximum Earned Income Tax Credit (EITC) increased modestly from the 2019 EITC parameters by about $10 for childless filers and about $60-$100 for filers with children. Table 4: 20 Standard Deduction Filing Status Taxpayers can choose to take either the standard deduction or the sum of all their itemized deductions, such as the mortgage interest deduction, state and local taxes (up to $10,000), charitable contributions, and medical expenses. Table 3: 20 Tax Rates for Heads of Households Rateįor tax year 2020, the standard deduction will increase by $200 for single taxpayers and for married individuals filing separate returns, by $400 for married couples filing joint returns, and by $300 for heads of households. Table 2: 20 Tax Rates for Married Individuals Filing Jointly and Surviving Spouses Rate ![]() Table 1: 20 Tax Rates for Single Individuals Rate The top marginal tax rate of 37 percent will now apply to single individuals and heads of households earning over $518,400 instead of $510,300 and to married couples filing jointly earning more than $622,050 instead of $612,350. ![]() Income thresholds for all tax brackets are adjusted upward to account for inflation and to limit "bracket creep," which would otherwise push taxpayers into higher tax brackets over time. The 2019 figures will be used for income earned in 2019 (tax returns filed in 2020), while the 2020 figures will be used for income earned in 2020 (tax returns filed in 2021). To make these adjustments, the IRS used the Chained Consumer Price Index (C-CPI) – as required by the Tax Cuts and Jobs Act – to calculate the past year’s inflation at 1.6 percent. The Internal Revenue Service (IRS) has released its tax year 2020 inflation adjustments for more than 60 federal tax provisions. ![]()
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