BP Administrations

11902 Rosecrans Ave Suite B Norwalk, CA. 90650 Tel (562) 888-1517 Fax (562) 991-5401

2020 will call for many tax changes. Keep in mind the new tax bill is 600 pages. We have complied the highlights of that bill. If you still have questions, please contact us. Thank you.  

Highlights from the 2020 Tax Legislation: 

There are seven federal tax brackets for the 2020 tax year: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your bracket depends on your taxable income and filing status. These are the rates for taxes due in April 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

                    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         

 

 

  • Stimulus Check 

    • ​Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Most  Americans received direct economic recovery rebate payments of $1,200 ($2,400 for couples filing jointly), plus $500 more for each child under age 17.                                                  

    • This stimulus check is an advance refundable tax credit on 2020 taxes. This means no matter how much you owe (or don't owe) in taxes for the 2020 tax year, you get to keep all the money with no taxes due on it.                                                                   

  • Standard Deductions    

    • I​n 2020 the standard deduction is $12,400 for single filers and married filers filing separately, $24,800 for married filers filing jointly and $18,650 for heads of household.                                                                                                                                       ​​

  • Retirement ​   
    • There are a lot of changes in 2020 for retirement plans which from the SECURE Act that was signed into law late in 2019. The CARES Act includes a few provisions affecting retirement accounts as well.

    • Required Minimum Distributions (RMDs)- under the SECURE Act, the beginning age for taking RMDs rises from 70½ to 72. (Keep in mind this change only applies to account owners who turn 70½ after 2019.) The CARES Act allows seniors to skip their RMDs in 2020 without penalty.   

  •  Earned Income and AGI Limits 

    • ​Qualifying Children Claimed if filing Single, Head of Household, or Widowed:                                                                                  

      • Zero:​ $15,820

      • One: $41,756

      • Two: $47,440

      • Three: $50,594      ​​                                                                                                                                                          

    • Qualifying Children Claimed if filing Married Filing Jointly                                                                                                              

      • Zero:​$21,710

      • One:$47,646

      • Two:$53,330

      • Three:$56,844

 

       

 

    (562) 888-1517          bpa.contact@gmail.com      11902 Rosecrans Ave. Unit B, Norwalk, CA 90650