Planning for next year’s taxes
by St. John & Associates on Aug 20, 2020
Now that most of us have filed our 2019 Federal Tax returns, it's not too early to plan for our 2020 tax returns, since the end of the year is only 4 months away!
Most people are not aware of the slight changes that have taken place in the tax regulations, such as the following:
1. The standard deduction amount increased to $24,800 for joint returns, plus $1,300 for each spouse age 65 or older, $14,050 if at least 65 for single filers
2. Maximum taxable earning increased to $137,700 from $132,900, subject to Social Security taxes
3. Maximum Social Security Benefit increased from $2,861 to $3,011 per month
4. 401(k) employee contribution increased from $19,000 to $19,500, plus a catch-up of from $6,000 to $6,500 for individuals 50 or older
5. There is an increase in monthly Part B premiums for all taxable income brackets
6. There is some increase in the deductible and co-insurance amounts for Medicare Part A (hospital costs)
7. There is a slight increase in the income tax threshold for long term capital gains and qualified dividends
8. Non-tax itemizers can now write-off up to $300 of charitable cash contributions
If you have questions concerning these or other tax matters, it’s always a good idea to ask a tax professional. Although St John & Associates does not prepare taxes (we are not accountants,) we do provide our financial planning clients with individual tax planning based on previous returns and their specific circumstances. See our website at www.StJohnFinancial.com for a complete list of services.
- By Richard St. John, Founder & President