What's New For 2020

You may need a paycheck checkup

The new tax law could affect how much tax someone should have their employer withhold from their paycheck. To help with this, the IRS urged taxpayers to visit the Withholding Calculator on IRS.gov. The Withholding Calculator can help prevent employees from having too little or too much tax withheld from their paycheck. Having too little tax withheld can mean an unexpected tax bill or potentially a penalty at tax time in 2020. And with the average refund topping $2,500, some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks.

Table 1.2020 Filing Requirements Chart for Most Taxpayers IF your filing status is...AND at the end of 2020 you were...*THEN file a return if your gross income was at least...**

single under 65 $12,400 

65 or older $14,050

head of household under 65 $18,650

65 or older $20,300

married, filing jointly***under 65 (both spouses)$24,800

65 or older (one spouse)$26,100

65 or older (both spouses)$27,400

married, filing separately any age $5

qualifying widow(er) under 65 $24,80065 or older$26,100

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Deduction for personal exemptions suspended

For 2020, you can’t claim a personal exemption deduction for yourself, your spouse, or your dependents.

Changes to itemized deductions. For 2019, the following changes have been made to itemized deductions that can be claimed on Schedule A.

  • Your itemized deductions are no longer limited if your adjusted gross income is over a certain amount.

  • You can deduct the part of your medical and dental expenses that is more than 7.5 percent of your adjusted gross income.

  • Your deduction of state and local income, sales, and property taxes is limited to a combined, total deduction of $10,000 ($5,000 if married filing separately).

  • You can no longer deduct job-related expenses or other miscellaneous itemized deductions that were subject to the 2 percent of AGI floor. You may still deduct certain other items on Schedule A, such as gambling losses.

  • For indebtedness incurred after December 15, 2017, the deduction for home mortgage interest is limited to interest on up to $1,000,000 of home acquisition indebtedness. This new limit doesn’t apply if you had a binding contract to close on a home after December 15, 2017, and closed on or before April 1, 2018, and the prior limit would apply.

  • You can no longer deduct interest on home equity indebtedness, which means indebtedness not incurred for the purpose of buying, building, or substantially improving the qualified residence secured by the indebtedness.

  • The limit on charitable contributions of cash has increased from 50 percent to 60 percent of your adjusted gross income.

Moving expenses no longer deductible. For 2019, you can no longer deduct your moving expenses unless you are a member of the Armed Forces on active duty.