2020 Tax Fast Facts

Federal Income Tax Rates for 2020

Married Filing Jointly

Taxable Income Tax Rate
$0 to $19,750 10%
$19,751 to $80,250 12%
$80,251 to $171,050 22%
$171,051 to $326,600 24%
$326,601 to $414,700
32%
$414,701 to $622,050 35%
More than $622,050 37%

Single

Taxable Income Tax Rate
$0 to $9,875 10%
$9,876 to $40,125 12%
$40,126 to $85,525 22%
$85,526 to $163,300 24%
$163,301 to $207,350 32%
$207,351 to $518,400 35%
More than $518,400 37%

Capital Gain Tax Rates for 2020

Short Term

Tax Bracket Asset Holding Period Rate
10% 10%
12% 12%
22% 22%
24% 24%
32% 32%
35% 35%
37% 37%

Long Term

Asset Holding Period Rate Married Filing Jointly* Single*
0% $0 to $80,000 $0 to $40,000
15% $80,001 to $496,600 $40,001 to $441,450
20% More than $496,600 More than $441,450

* Could increase due to inflation adjustment. Source: Internal Revenue Service.

Estate and Gift Tax Exemptions for 2020

  • Estate Tax Exempt Amount: $11.58 Million*
  • Gift Tax Exempt Amount: $11.58 Million*
  • Gift Tax Annual Exclusion Amount: $15,000*

* Could increase due to inflation adjustment. Source: Internal Revenue Service.

IRA and Retirement Plan Limits for 2020

Maximum IRA Contributions

The maximum amount you and/or your spouse can contribute to an IRA is1:

Account Type Maximum Amount
Roth IRA (single) $6,000
Roth IRA (married filing jointly) $12,000
Traditional IRA (single) $6,000
Traditional IRA (married filing jointly) $12,000
Catch-up contributions2 (single) $1,000
Catch-up contributions2 (married filing jointly) $2,000

1 Or compensation if less.
2 Age 50 or older
.

Deductible Traditional IRA Phaseouts

Deductibility depends on MAGI and whether you or your spouse is covered by an employer-sponsored retirement plan. You must figure your deduction and your spouse's deduction separately. The deduction for contributions to traditional IRAs phases out over the following MAGI levels:

Covered by employer plan and:

Filing Status AGI Level
Single $65,000-$75,000
Married filing jointly $104,000-$124,000

Not covered by employer plan and:

Filing Status AGI Level
Single or married filing jointly with a spouse who also is not covered No Limit
Married filing jointly with a spouse who is covered $196,000-$206,000

There is no income limit for contributions to a non-deductible traditional IRA.

Roth IRA Eligibility Phaseouts

Eligibility for Roth IRAs is phased out over the following MAGI levels:

Filing Status AGI Level
Single $124,000-$139,500
Married filing jointly $196,000-$206,000
Married filing separately $0-$10,000

Maximum Retirement Plan Contributions

The maximum amount you can contribute to an employer-sponsored retirement plan; generally is the lesser of 100% of your salary or:

Plan Type Maximum Amount
401(k) and 403(b) $19,500
SIMPLE-IRA $13,500
401(k) and 403(b) Catch-up contributions3 $6,500
SIMPLE-IRA Catch-up contributions3 $3,000


3 Age 50 or older

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IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.

This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.

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