![]() ![]() For 2020, those amounts will look like this:įor 2020, the standard deduction amount for an individual who may be claimed as a dependent by another taxpayer cannot exceed the greater of $1,100 or the sum of $350 and the individual’s earned income (not to exceed the regular standard deduction amount). The deduction is subject to threshold and phased-in amounts. Section 199A deduction (also called the pass-through deduction)Īs part of the TCJA, sole proprietors and owners of pass-through businesses are eligible for a deduction of up to 20% to bring the tax rate lower for qualified business income. However, as a result of the TCJA, there are no Pease limitations in 2020 (though there are rumblings in Congress about changing that-click here for more). The additional standard deduction amount will increase to $1,650 if the individual is also unmarried and not a surviving spouse.įor those high-income taxpayers who itemize their deductions, the Pease limitations, named after former Representative Don Pease (D-OH) used to cap or phase out certain deductions. The additional standard deduction amount for the aged or the blind will be $1,350. ![]()
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