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1 Amir El-Sibaie, 2020 Tax Brackets 1 (2019)

handle is hein.taxfoundation/txbrkts0001 and id is 1 raw text is: 2020 Tax Brackets FISCAL FACT No. 676 Nov. 2019 Amir EI-Sibaie Economist On a yearly basis the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called bracket creep, when people are pushed into higher income tax brackets or have reduced value from credits and deductions due to inflation, instead of any increase in real income. The IRS used to use the Consumer Price Index (CPI) to calculate the past year's inflation.' However, with the Tax Cuts and Jobs Act of 2017, the IRS will now use the Chained Consumer Price Index (C-CPI) to adjust income thresholds, deduction amounts, and credit values accordingly.2 Income Tax Brackets and Rates In 2020, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows (Table 1). The top marginal income tax rate of 37 percent will hit taxpayers with taxable income of $518,400 and higher for single filers and $622,050 and higher for married couples filing jointly. TABLE 1. Tax Brackets and Rates, 2020 Rate 10% 12% 22% The Tax Foundation is the nation's leading independent tax policy research organization. Since 1937, our research, analysis, and experts have informed smarter tax policy at the federal, state, and local levels. We are a 501(c)(3) nonprofit organization. @2019 Tax Foundation Distributed under Creative Commons CC-BY NC 4.0 For Single Individuals, Taxable Income Over $0 $9,875 $40,125 24% $85,525 32% $163,300 35% $207,350 37% $518,400 Source: Internal Revenue Service For Married Individuals Filing Joint Returns, Taxable Income Over $0 $19,750 $80,250 $171,050 $326,600 $414,700 $622,050 For Heads of Households, Taxable Income Over $0 $14,100 $53,700 $85,500 $163,300 $207,350 $518,400 Editor, Rachel Shuster Designer, Dan Carvajal Tax Foundation 1325 G Street, NW, Suite 950 Washington, DC 20005 202.464.6200 1 Internal Revenue Service, Revenue Proc. 2019-44,' https://www.irs.gov/pub/irs-drop/rp-19-44.pdf. 2 Robert Cage, John Greenlees, and Patrick Jackman, Introducing the Chained Consumer Price Index,' U.S. Bureau of Labor Statistics, May 2003, https://www.bls.gov/cpi/additional-resources/chained-cpi-introduction.pdf. taxfoundation.org

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