That means that you can gift $15,000 per person to as many people as you want with no federal gift tax consequences in 2019 if you split gifts with your spouse, that total is $30,000 per person. The annual exclusion for federal gift tax purposes will remain at $15,000 in 2020. The federal estate tax exclusion for decedents dying will increase to $11.58 million per person or $23.16 million per married couple. (For more on the kiddie tax, click here.) Under the TCJA, your child must pay taxes on their unearned income, but if that amount is more than $1,100, but less than $11,000, you may be able to elect to include that income on your return rather than file a separate return for your child. 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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