The Internal Revenue Service has released its new tax brackets for the 2019 season and the result will be a difference in the paychecks of many. The Trump administration’s Tax Cuts and Jobs Act have put a number of U.S. tax code reforms into place.
The IRS used a different method to calculate inflation, while the Act requires additional adjustments for inflation. The result is that people will pay more taxes in the 2019 tax year than when they file in 2020.
With the changes, many people want to know how much they’ll be paying this tax season with the new brackets possibly requiring more money from certain people. To learn more about how you will be affected by the 2019 tax brackets, experts at 1-800-Accountants will be able to assist. For years the company has helped individuals and businesses by making taxes simpler.
The 1-800-Accountants team includes certified public accountants, enrolled agents and other experts who can answer nearly any tax-related question someone may have. They have been able to create easy-to-use technology that is mobile friendly and has allowed them to build a network of experts and industry types in all 50 states.
Each year, the IRS adjusts tax rates for inflation and is now utilizing a new approach of gauging inflation that has the potential to increase payments and government revenue when compared to previous approaches as a result of the standard deduction increasing at a slower rate.
Here’s what rates are looking like for 2020:
10% – People with incomes of $9,700 or less and married couples with $19,400 or less
12% – People with incomes over $9,700 or married couples with over $19,400
22% – People with incomes over $39,475 or married couples with over $78,950
24% – People with incomes over $84,200 or married couples with over $168,400
32% – People with incomes over $160,725 or married couples with over $321,450
35% – People with incomes over $204,100 or married couples with over $408,200
37% – People with incomes over $510,300 or married couples with over $612,350