Eggert Financial Management, Inc.

Cultivating Wealth, Shaping Legacies
Bill Eggert, CFP®, NSSA®
President
7200 S. Alton Way
Suite A-210
Centennial, CO 80112
303-414-0400
info@eggertfinancial.net
www.eggertfinancial.net

February 24, 2020

2020 Key Numbers
 

Individual Income Tax Planning

Adoption credit

Adoption credit20202021
Maximum credit$14,300 $14,440
Phaseout threshold amount$214,520$216,660
Completed phaseout amount after$254,520 $256,660

Alternative Minimum Tax (AMT)

Maximum AMT exemption amount20202021
Married filing jointly or surviving spouse$113,400 $114,600
Single or head of household$72,900$73,600
Married filing separately$56,700 $57,300
AMT income exemption phaseout threshold20202021
Married filing jointly or surviving spouse$1,036,800 $1,047,200
Single or head of household$518,400$523,600
Married filing separately$518,400$523,600
AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount)20202021
All taxpayers except married filing separately$197,900 $199,900
Married filing separately$98,950$99,950

Charitable deductions

Use of auto20202021
Deductible standard mileage rate$0.14$0.14
Charitable fundraising "insubstantial benefit" limitation20202021
Low-cost article (re: unrelated business income)$11.20$11.30
Gifts to donor in return for contribution20202021
Token gift maximum cost1$11.20$11.30
Minimum contribution amount1$56$56.50
2% threshold amount2$112$113

1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum

2 Charitable contribution is fully deductible if the benefit received by the donor doesn't exceed the lesser of the threshold amount or 2% of the amount of the contribution

Child tax credit

Amount of credit20202021
Maximum credit per qualifying child$2,000$2,000
Nonrefundable credit for dependents who are not qualifying children$500$500
Phaseout -- credit reduced by $50 for each $1,000 or fraction thereof of MAGI over:20202021
Single$200,000$200,000
Married Filing Jointly$400,000$400,000
Married Filing Separately$200,000$200,000
Refundability -- up to specified percentage of earned income in excess of specified amount20202021
Percentage15%15%
Amount$2,500$2,500
Maximum refundable amount of credit$1,400$1,400

Classroom expenses of elementary and secondary school teachers

Classroom expense deduction20202021
Maximum above-the-line deduction$250$250

Earned income tax credit (EITC)

Investment income limit20202021
Excessive investment income limit ("disqualified income limit")$3,650 $3,650
Maximum amount of EITC per number of children20202021
0 children$538 $543
1 child$3,584$3,618
2 children$5,920$5,980
3 or more children$6,660$6,728
Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received)20202021
0 children$7,030 $7,100
1 child$10,540$10,640
2 or more children$14,800$14,950
Threshold phaseout amount for joint filers per number of children20202021
0 children$14,680 $14,820
1 child$25,220$25,470
2 children$25,220$25,470
3 or more children$25,220$25,470
Threshold phaseout amount for other filers per number of children20202021
0 children$8,790 $8,880
1 child$19,330$19,520
2 children$19,330$19,520
3 or more children$19,330$19,520
Completed phaseout amount for joint filers per number of children20202021
0 children$21,710 $21,920
1 child$47,646$48,108
2 children$53,330$53,865
3 or more children$56,844$57,414
Completed phaseout amount for other filers per number of children20202021
0 children$15,820 $15,980
1 child$41,756$42,158
2 children$47,440$47,915
3 or more children$50,954$51,464

Expatriation

Covered expatriate20202021
An individual with "average annual net income tax" of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1)$171,000 $172,000
IRC §877A(3) exclusion amount$737,000$744,000

Foreign earned income

Amount excluded from income20202021
Exclusion amount$107,600 $108,700

Itemized deductions

Phaseout threshold20202021
Married filing jointlyN/AN/A
Head of householdN/AN/A
UnmarriedN/AN/A
Married filing separatelyN/AN/A

Kiddie tax

Unearned income limit20202021
Amount exempt from tax$1,100 $1,100
Additional amount taxed at child's rate$1,100$1,100
Unearned income over this amount generally taxed at parents' tax rates1$2,200$2,200
Parent's election20202021
Election to include child's income on parent's return -- child's gross income requirement$1,100 - $11,000 $1,100 - $11,000
AMT20202021
AMT exemption for child subject to kiddie taxLesser of $7,900 + child's earned income or $72,900 Lesser of $7,950 + child's earned income or $73,600
1 Taxed at parents' tax rates in 2020 and 2021. In 2019, taxed at trust and estate income tax rates (special rules apply to alternative minimum tax purposes) but retroactive election may be made to tax at parents' tax rates.

Medicare tax (additional payroll tax and unearned income contribution tax)

Payroll tax20202021
Additional Medicare payroll tax (and self-employment tax) percentage rate0.90%0.90%
Applies to wages/self-employment income exceeding20202021
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000
Tax on unearned income20202021
Unearned income Medicare contribution tax rate3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding20202021
Individuals$200,000$200,000
Married filing jointly $250,000$250,000
Married filing separately$125,000$125,000

Nanny tax

Compensation threshold20202021
Domestic employee coverage threshold$2,200$2,300

Personal exemption amount

Amount20202021
Personal exemption amountN/A N/A
Married filing jointly20202021
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Head of household20202021
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Unmarried20202021
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/A N/A
Married filing separately20202021
Phaseout threshold amountN/A N/A
Completed phaseout amount afterN/AN/A

"Saver's Credit"

Elective Deferrals and IRA or ABLE Contributions by Certain Individuals20202021
Maximum credit amount$1,000$1,000
Applicable percentage of 50% applies to AGI20202021
Joint Return$0 - $39,000 $0 - $39,500
Head of Household$0 - $29,250$0 - $29,625
Other$0 - $19,500$0 - $19,750
Applicable percentage of 20% applies to AGI20202021
Joint Return$39,001 - $42,500 $39,501 - $43,000
Head of Household$29,251 - $31,875$29,626 - $32,250
Other$19,501 - $21,250$19,751 - $21,500
Applicable percentage of 10% applies to AGI20202021
Joint Return$42,501 - $65,000 $43,001 - $66,000
Head of Household$31,876 - $48,750$32,251 - $49,500
Other$21,251 - $32,500$21,501 - $33,000
Applicable percentage of 0% applies to AGI20202021
Joint ReturnOver $65,000 Over $66,000
Head of HouseholdOver $48,750Over $49,500
OtherOver $32,500Over $33,000

Standard deductions

Amounts20202021
Married filing jointly or surviving spouse$24,800 $25,100
Head of household $18,650$18,800
Unmarried$12,400$12,550
Married filing separately$12,400$12,550
Dependent--Standard deduction cannot exceed the greater of:$1,100 or $350 + earned income$1,100 or $350 + earned income
Additional deduction for aged or blind (single or head of household)$1,650$1,700
Additional deduction for aged or blind (all other filing statuses)$1,300 $1,350

Standard mileage rates

Applicable rates 20202021
Use of auto for business purposes (cents per mile)$0.575TBD
Use of auto for medical purposes (cents per mile)$0.17TBD
Use of auto for moving purposes (cents per mile)$0.17TBD
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Eggert Financial Management, Inc. is an Investment Advisory firm regulated by the State of Colorado.

 

Prepared by Broadridge Advisor Solutions Copyright 2020.