to all clients of Le's Office and friend! It is time to begin preparing for the 2021 income tax filing season. Start by collecting
and keeping track of your income and deduction documentation.
KEY 2020 EXEMPTION AND DEDUCTIONS :
1.NO PERSONAL EXEMPTIONS :
The personal exemption for each qualifying dependent for 2020 :
: 2020 : $ 0
2. STANDARD DEDUCTIONS : for tax
Married Filing Joint $24,800
Head of Household $18,650
Married Filing Sep $12,400
Elderly / Blind : married + $1300
Elderly / Blind
: unmarried + $1650
3. STANDARD MILEAGE RATES :
mileage rates for 2020 are :
a. Business :
$.575 / mile
b. Charitable work : $ .14 / mile
c. Medical/Moving : $ .17 / mile
HEALTH INSURANCE PENALTY in 2020 : No penalty in tax year 2020
Self Employment : Can deduct health insurance premium in tax year 2020
2020 TAX RATES :
Income Tax Brackets
1. TAX RATE 10% : Single(S) , Married Joint(MJ), Head of Household (H)
$1 - $9225(S)
* $1 - $18150(MJ) * $1 - $ 12950(H)
2. TAX RATE 15% :
$9076 - $36950(S) * $18151
- $73800(MJ) * $12951 - $49400 (H)
3. TAX RATE 25% :
- $89350(S) * $73801 - $148850(MJ) * $ 49401 - $ 127550(H)
CREDIT 2020 - DO YOU QUALIFY ?
Each year taxpayers claim a variety of tax credits for which they
are eligible. Tax credits are valuable because they are a dollar -for-dollar reduction of taxes owned.
1. The Earned Income Tax
Credit : is a refundable credit for low -income working individuals and families.
Maximum Credit : $538(none children ), $3584 (One Child), $5920(Two children), $6660 (Three or more Children).
You can claim EITC for Max 3 Children.
*** Investment income Limit
for EIC : $3650
2. The Child and Dependent
Care Credit : is for expenses paid for the care of children under age 13, or for a disable spouse or dependent.
3. The Child Tax Credit : is for people
who have a qualifying child. The maximum amount of the credit is $2000 for each qualifying in 2020.
4. The Adoption Credit : is
a tax credit of up to $14300 in 2020 for qualifying expenses paid to adopt a child.
5. The Credit for the Elderly or the Disablle : is a credit
available to individuals who are either age 65 or older or under age 65 and retired on permanent and total disability.
NEW 2020 TAX LAWS
- TAX SAVING FOR 2020
-Energy Tax Credits :
- First-Time Homebuyer Credit : none
- Education Credit : You may qualify for maximum annual credit of $2500 per
Earn Income Tax Credit : you may claim
up to 3 children ( Max $6660). Taxpayer must be older than the Child in order to claim EITC.
MORE 2020 TAX UPDATE . If you want more
2020 tax update, please link the line below, you will be automatic link direct
to IRS web site :I R S Web SiteIf you need more information or have any question, please call Tom at 585-330-9263 or email us : email@example.com