By Sally P. Schreiber, J.D.
The IRS issued the 2020 annual inflation adjustments for many tax provisions as well as the 2020 tax rate tables for individuals and estates and trusts (Rev. Proc. 2019-44). These adjusted amounts will be used to prepare tax year 2020 returns in 2021.
Many amounts will increase for inflation in 2020. The standard deduction will increase to $24,800 for married individuals filing joint returns or surviving spouses, $18,650 for heads of household, and $12,400 for unmarried individuals (other than surviving spouses) and married individuals filing separate returns.
The maximum amount of the earned income tax credit (for taxpayers with three or more children) will increase to $6,660 from $6,557 in 2019.