2020 Federal Tax Brackets

What changed in 2020

2020 was year 3 of the TCJA 7-bracket structure with thresholds inflation-indexed about 1.8% over 2019. The standard deduction rose to $12,400 single / $24,800 MFJ ($200 / $400 above 2019). The 37% bracket began at $518,400 single / $622,050 MFJ. For a single filer with $60,000 taxable income, 2020 federal income tax was approximately $6,790, an effective rate of 11.32%. The legislative story of 2020 was the CARES Act (March 2020), which delivered the first round of COVID-era tax responses. Stimulus payments of $1,200 per adult and $500 per child (under 17) were issued mid-year and reconciled on the 2020 return as the Recovery Rebate Credit. Required Minimum Distributions were waived for 2020. Pre-59.5 retirement-account withdrawals up to $100,000 could be repaid over 3 years without the 10% early-withdrawal penalty or with income tax spread over 3 years. A new $300 above-the-line charitable deduction was created for non-itemizers (the only year that provision applied; it was extended to $600 for joint filers in 2021 then expired). Net Operating Loss carryback rules were temporarily relaxed.