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Key Facts 2020

  • Annual Gift Exclusion: $15,000
  • Estate, gift and generation-skipping tax exemption - $11,580,000
  • IRA and Roth IRA Contribution Limits: $6,000 plus another $1,000 for individuals over 50
  • Simple IRA Contributions: $13,500 plus another $3,000 for individuals over 50
  • 401(k) Contribution Limits: $19,500 plus another $6,500 for individuals over 50
  • SEP IRA Contribution Limits: 25% of compensation or maximum of $57,000
  • Top Federal Tax Rate: 37% on income over $518,400 for single taxpayers and $622,050 for married taxpayers
  • Top Federal Tax Rate: 37% on income over $12,950 for Estates & Trusts
  • Long-Term Federal Capital Gains Rate: 20% on maximum taxable income over $441,450 for single taxpayers and maximum taxable income of $496,600 for married taxpayers
  • Long-Term Federal Capital Gains Rate: 15% on maximum taxable income of $40,000-$441,450 for single taxpayers and maximum taxable income of $80,000-$496,600 for married taxpayers
  • Additional 3.8% Medicare Tax on investment Income, dividends and capital gains for single taxpayers with AGI greater than $200,000 and married taxpayers with AGI greater than $250,000
  • Standard Deduction: $12,400 for single taxpayers and $24,800 for married taxpayers
  • State and Local Tax Deductions: Individuals can deduct up to $10,000 which includes a combination of property taxes and state income tax or sales tax
  • Mortgage Interest: The mortgage interest deduction is capped at loans of $750,000 for loans started 1/1/2018
  • Home Equity Loans: Loans for other than home purchase, build or renovation are no longer deductible
  • Annual Benefit Limit under Defined Benefit Plans: $230,000
  • Health Savings Account: $3,550 contribution limit for single taxpayers, $7,100 contribution limit for family, $1,000 Catch-up for taxpayers over 55