The standard deduction basically is a flat-dollar, no-questions-asked reduction in your AGI. The amount you qualify for depends on your filing status.
Tax Information
How long should I keep records?
The length of time you should keep a document depends on the action, expense, or event the document records. Generally, you must keep your records that support an item of income or deductions on a tax return until the period of limitations for that return runs out.
The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund, or that the IRS can assess additional tax. The below information contains the periods of limitations that apply to income tax returns. Unless otherwise stated, the years refer to the period after the return was filed. Returns filed before the due date are treated as filed on the due date.
Note: Keep copies of your filed tax returns. They help in preparing future tax returns and making computations if you file an amended return.
- You owe additional tax and situations (2), (3), and (4), below, do not apply to you; keep records for 3 years.
- You do not report income that you should report, and it is more than 25% of the gross income shown on your return; keep records for 6 years.
- You file a fraudulent return; keep records indefinitely.
- You do not file a return; keep records indefinitely.
- You file a claim for credit or refund* after you file your return; keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later.
- You file a claim for a loss from worthless securities or bad debt deduction; keep records for 7 years.
- Keep all employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later.
The following questions should be applied to each record as you decide whether to keep a document or throw it away.
What should I do with my records for nontax purposes?
When your records are no longer needed for tax purposes, do not discard them until you check to see if you have to keep them longer for other purposes. For example, your insurance company or creditors may require you to keep them longer than the IRS does.
Documentation you may have that is needed for your tax preparation:
IF YOU HAVE DOCUMENTS THAT YOU ARE NOT SURE ABOUT PLEASE BRING WITH YOU AT TIME OF YOUR APPOINTMENT FOR MY REVIEW.
The Standard Deduction
Filing Status | 2019 Tax Year | 2020 Tax Year |
|---|---|---|
| Single | $12,200 | $12,400 |
| Married Filing Joint | $24,400 | $24,800 |
| Married Filing Separately | $12,200 | $12,400 |
| Head of Household | $18,350 | $18,650 |
Earned Income and AGI Limits
Earned income and adjusted gross income (AGI) must each be less than:
If Filing for 2019 | Qualifying Children Claimed | |||
|---|---|---|---|---|
| Zero | One | Two | Three or more | |
| Single, Head of Household or Widowed | $15,570 | $41,094 | $46,703 | $50,162 |
| Married Filing Jointly | $21,370 | $46,884 | $52,493 | $55,952 |
If Filing for 2020 | Qualifying Children Claimed | |||
|---|---|---|---|---|
| Zero | One | Two | Three or more | |
| Single, Head of Household or Widowed | $15,820 | $41,756 | $47,440 | $50,594 |
| Married Filing Jointly | $21,710 | $47,646 | $53,330 | $56,844 |
Maximum Credit Amounts
Qualifying Children Claimed | 2019 Tax Year | 2020 Tax Year |
|---|---|---|
| Zero | $529 | $538 |
| One | $3,526 | $3,584 |
| Two | $5,828 | $5,920 |
| Three or more | $6,557 | $6,660 |
Investment Income Limit
Filing for 2019:
Investment income must be $3,600 or less for the year.
Filing for 2020:
Investment income must be $3,650 or less for the year.
Reference 2019
Beginning on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 58 cents per mile driven for business use, and
- 20 cents per mile driven for medical or moving purposes, and
- 14 cents per mile driven in service of charitable organizations.
Reference 2020
Beginning on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 57.5 cents per mile driven for business use, and
- 17 cents per mile driven for medical or moving purposes, and
- 14 cents per mile driven in service of charitable organizations.
Tax Withholding
The Tax Cuts and Jobs Act changed the way tax is calculated. The IRS encourages taxpayers to perform a quick “paycheck checkup” by using the Withholding Calculator to check if they have the right amount of withholding for their personal situation.