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Estate and Other Tax Changes for 2020
January 08, 2020 | Freya Allen Shoffner, Esquire | Main Office

Estate and Other Tax Changes for 2020


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There will be changes to tax exclusions and deductions in 2020. The estate tax exclusion will go up $180,000 to $11.58 million. Individual estates worth up to $11.58 million will not be subject to federal or gift taxes. Estates for married couples will not be subject to federal or gift taxes if they don't exceed $23.16 million.

Gift tax exclusions will remain at $15,000.

The standard deduction for single taxpayers and married individuals filing separately increases by $200 to $12,400 in 2020. Married couples filing jointly will have deductions of $24,800. The standard deduction will be $18,650 for heads of households which is an increase of $300.

There will also be an increase in 2020 for the Alternative Minimum Tax exemption to $72,900 from $71,700 which begins to phase out at $518,400 from $510,300. For married couples filing jointly the exemption will be $113,400 and will start to phase out at $1,036,800.

The adjusted gross income amount is rising by $2000 to $118,000 for joint filers to determine the reduction in the Lifetime Learning Credit in 2020.

Below are the tax rates:

37% for incomes over $518,400 - $622,050 for married couples filing jointly
35% for incomes over $207,359 - $414,700 for married couples filing jointly
32% for incomes over $163,300 - $326,600 for married couples filing jointly
24% for incomes over $85,525 - $171,050 for married couples filing jointly
22% for incomes over $40,125 - $80,250 for married couples filing jointly
12% for incomes over $9875 - $19,750 for married couples filing jointly






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