1. 2020 Tax Rates range from 10%-37%, which is the same as the previous year. Long-term Capital Gain Tax Rates fall into four categories based on income: 0%, 10%, 15%, and 20%.
2. Standard deductions have increased for each filing status:
Head of Household- $18,650
Married filed jointly- $24,800
Married filed separately- $12,400
3. Child Tax credit for qualifying dependent children under age 17 increased from $1,000 to $2,000.
4. Miscellaneous Itemized Deductions (Schedule A) no longer exist. These include tax preparation fees, investment expenses, employee business expense, safe deposit box, qualified legal expenses...
5. Personal casualty losses are no longer deductible except for losses attributed to a Federally declared disaster. Moving expense deductions no longer exist with the exception of members of the Armed Forces on active duty.
6. There is no required minimum distribution from your IRA or retirement plans in 2020. If you withdraw any money from your IRA or retirement plans, there is no longer a penalty for early withdrawals. You also have up to three years to pay the tax bill or replace the funds.
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