Standard Deductions Increased
The 2020 standard deduction amounts for 2020 have gone up and they are as follows:
- Married Filing Jointly: $24,800
- Married Filing Separately: $12,400
- Head of Household: $18,650
- Single: $12,400
The standard deduction reduces the amount of your income that is subject to Federal taxes. If a single person is eligible for and chooses to take the standard deduction (as opposed to itemizing deductions) on their 2020 tax return, they would not be taxed on the first $12,400 of their income in 2020.
Please call our office if you have any questions!