Neil &  Company CPAs, PC

A Professional Corporation

1184 North 15th Street, Bozeman, MT 59715

 

Phone: 406-587-9239

 

February 2020

Tax Numbers To Know

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Throughout this newsletter, we’ll focus on numbers you need to know for tax year 2019 and offer a sampling of what’s ahead for 2020. Consult a tax professional for personalized help.


STANDARD DEDUCTION
The Tax Cuts and Jobs Act that became law in 2017, increased the standard deduction significantly.


If you take the standard deduction, you can reduce your taxable income by up to $24,400 in 2019 if married and filing jointly, $18,350 if you file as head of household or $12,200 if you’re single or married and filing separately. Those numbers will increase to $24,800, $18,650 and $12,400 respectively in 2020.


BRACKET INCREASES
Check out the accompanying graphic for both 2020 and 2019. The vast majority of taxpayers will see a tax rate of 22% or lower. Tax brackets rise in 2020 due to inflation adjustments.



https://www.irs.gov/pub/irs-drop/rp-19-44.pdf and https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2020


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