StashLearn
Get the app
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Teach Me

The Biggest Changes to Your 2020 Taxes

November 14, 2019

The IRS tweaked tax brackets and standard deductions.

1 min read

The only thing people hate may hate more than paying taxes is keeping up with changes to tax laws.

And as it turns out, the IRS has just released the inflation adjustments to existing tax brackets for 2020, along with other tweaks to next year’s taxes. These changes follow the sweeping changes to tax laws in 2018 and will apply to the income you earn in 2020.

So you’ll need to know this breakdown for filing time in 2021. Read on to find out more.

What changed?

Like last year, there are seven tax brackets, and the tax rate, or the percentage at which income in these brackets is taxed, also remains the same. However, the income levels for each bracket have changed slightly, to adjust for increases to the cost of living. The standard deduction has also gone up for both single filers and married people who file jointly. The standard deduction is the flat deduction amount you get if you don’t itemize your taxes.

Whether you’re filing individually or jointly, you can see which bracket applies to you below:

2020 Federal Income Tax Rates, Unmarried Individuals

IncomeRate
up to $9,87510%
Over $9,875 to $40,12512%
Over $40,125 to $85,52522%
Over $85,525 to $163,30024%
Over $163,000 to $207,35032%
Over $207,350 to $518,40035%
Over $518,40037%
*Source: IRS

2020 Federal Income Tax Rates, Married Filing Jointly

IncomeRate
Up to $19,75010%
Over $19,750 to $80,25012%
Over $80,250 to $171,05022%
Over $171,050 to $326,60024%
Over $326,600 to $414,70032%
Over $414,700 to $622,05035%
Over $622,05037%
*Source IRS

(You can find how the 2020 tax rates compare to those for 2019 here.)

What else has changed?

How do I figure out my tax bracket?

Remember, though, that while you’ll pay more taxes as your income increases, you don’t pay the full tax amount on your income based on your bracket. For example, if your adjusted gross income (the income you claim after deductions) is $50,000 annually and you’re filing individually, your income would be taxed as follows:

Whether you file your own taxes or outsource the job to a tax professional, it’s important to stay informed as tax laws change so you know what’s happening to your hard-earned money.

Welcome to your new financial home.

Start today with as little as $5.

Get the App

Hooked on Stash? Tell your friends!

Get $5 for every friend you refer to Stash.

Refer friends

Hooked on Stash? Tell your friends!

Get $5 for every friend you refer to Stash.

Refer friends

By Claire Grant
Claire is a content writer for Stash.

This material has been distributed for informational and educational purposes only, and is not intended as tax advice. Consult with your tax professional.

Investment Profile

Bonds Worldwide

An International Bond ETF on Stash

Learn more
Explore more articlesChoose a topic to learn more about
Technology social media politics Retirement love and money
Disclaimers

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.