Tax Rates

2020 Tax Rates Tables

The Internal Revenue Service (IRS) has announced the annual inflation adjustments for the year 2020, including tax rate schedules, tax tables and cost-of-living adjustments.

There are seven (7) tax rates in 2020. They are: 10%, 12%, 22%, 24%, 32%, 35% and 37% (there is also a zero rate). Here’s how those break out by filing status:


Individual Tax payers

If Taxable Income Is Between: The Tax Due Is:
$0  – $9,875 10% of taxable income
$9,876- $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40,125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount over $163,300
$207,351 – $518,400 $47,367.50 + 35% of the amount over $207,350
$518,400 $156,235 + 37% of the amount over $518,400

 

Married Individuals filling Joint returns and surviving spouses

If Taxable Income Is Between: The Tax Due Is:
$0  – $19,750 10% of taxable income
$19,751 – $80,250 $1,975 + 12% of the amount over $19,750
$80,251 – $171,050 $9,235 + 22% of the amount over $80,250
$171,051 – $326,600 $29,211 + 24% of the amount over $171,050
$326,601 – $414,700 $66,543 + 32% of the amount over $326,600
$414,701 – $622,050 $94,735 + 35% of the amount over $414,700
$622,051 $167,307.50 + 37% of the amount over $622,050

 

Heads Of Household

Taxable income Is Between: The Tax Due Is:
$0 -$14,100 10% of taxable income
$518,401 $1,410 + 12% ofthe amount over $14,100
$14,101 – $53,700 $6,162 + of the amount over $53,700
$53,701 – $85 500 $13,158 + 24% of the amount over $85,500
$85,501 – $163,300 $31 ,830 + 32% of the amount over $163,300
$163,301 – $207,350 $45,926 + 35% of the amount over $207 ,350
$207,351 – $518,400 $154,793.50 + 37% of the amount over $518,400

 

Married Filing Separately

If Taxable Income Is Between: The Tax Due Is:
$0  – $9,875 10% of taxable income
$9,876 – $40,125 $987.50 + 12% of the amount over $9,875
$40,126 – $85,525 $4,617.50 + 22% of the amount over $40, 125
$85,526 – $163,300 $14,605.50 + 24% of the amount over $85,525
$163,301 – $207,350 $33,271.50 + 32% of the amount over $163,300
$207,351 -$311,025 $47,367.50 + 35% of the amount over $207,350
$311 ,026 $83,653.75 + 37% of the amount over $311,025

 

Trusts & Estates

If Taxable Income Is Between: The Tax Due Is:
$0 – $2,600 10% Of taxable income
$2,601 – $9,450 $260 + 24% of the amount over $2,600
$9,451 – $12,950 $1,904 + 35% of the amount over $9,450
$12,951 $3,129 + 37% of the amount over $12,950

 

 

Tax Due Dates

November 2020 – During November

Employers – Income tax withholding. Encourage employees to fill out a new Form W-4 for 2021 if they experienced any personal or financial changes. The 2021 revision of Form W-4 will be available on the IRS website by mid-December.

  • November 10

Employees – who work for tips. If you received $20 or more in tips during October, report them to your employer. You can use Form 4070.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the third quarter of 2020. This due date only applies if you deposited the tax for the quarter timely, properly, and in full.

  • November 16

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in October.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in October.

 

December 2020

  • December 10

Employees – who work for tips. If you received $20 or more in tips during November, report them to your employer. You can use Form 4070.

  • December 15

Corporations – Deposit the fourth installment of estimated income tax for 2020. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in November.

Employers – Non-payroll withholding. If the monthly deposit rule applies, deposit the tax for payments in November.

 

When are 2021 Tax Due Dates?

You have right up until tax day to file for an extension. For individuals, that means you can still file for a tax extension right on April 15. The same goes for businesses: S corps and partnerships can still get an extension on March 15, and the last day for C corps to file for an extension is April 15.

January 15, 2021

Estimated quarterly payments

Say a final goodbye to 2020. The fourth (and final) estimated quarterly tax payment for the previous tax year is due today.

Note: Individuals, you do not have to file this payment due on January 15, 2021—so long as you file your 2020 tax return by January 31, 2021 and pay the remaining balance owed with your return.

Forms:

February 1, 2021

Form W-2 filing deadline

If you have employees, you’ll need to fill out two copies of Form W-2 for each one.

One W-2 must be submitted to the IRS. The other must be sent to the employee. The deadline for both is February 1, 2021.

Forms:

Form 1099-NEC Copy A filing deadline

If you work with independent contractors, the new 1099-NEC form is due February 1, 2021.

Copy A must be filed with the IRS by this date. Copy B must be furnished to the contractor on this date, as well.

Forms:

March 1, 2021

Form 1099-MISC paper filing deadline

Some 1099s will require a 1099-MISC form.

This due date will only be for paper filing. If you file electronically or miss the paper filing deadline, you can file on March 31, 2021.

You must deliver Copy A to the IRS, and Copy B to your recipient.

Forms:

 

How to prepare your books for tax filing?

Our experts will explain how to make sure the books are in order for your small business ahead of upcoming tax deadlines, and answer any bookkeeping questions you have.

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March 15, 2021

S corporation and partnership tax returns due

Note that S corporations and Partnerships do not pay taxes on their income. That tax is paid on the individual incomes of the shareholders or partners, respectively.

March 15 is also the deadline to file for an extension for S corp and partnership tax returns.

Forms:

March 31, 2021

Form 1099-MISC Copy A filing deadline

Some 1099s will require a 1099-MISC form. This includes payments to an individual or LLC of at least $600 during the year in rent paid, legal settlements, or prize or award winnings.

This due date will only be for electronic filing.

You must deliver Copy A to the IRS, and Copy B to your recipient.

Forms:

April 15, 2021

Estimated quarterly payments

So it begins. If your business pays taxes on a quarterly basis, the first 2021 estimated quarterly tax payment is due today.

Forms:

Individual tax returns due

If you income is below $66,000 for the tax year, you can e-file for free using IRS Free File. If your income was above that, you can use the IRS’ free, fillable forms.

If you’re a sole proprietor filing Schedule C on your personal tax returns, the April 15, 2021 deadline applies to you too.

July 15 is also the deadline to file for an extension to file your individual tax return.

C corporation tax returns due

April 15 is also the deadline to file for an extension to file your corporate tax return.

Forms:

State tax returns

Each state determines their own tax deadlines. To find a list of current state tax deadlines, click here.

June 15, 2021

Estimated quarterly payments

The second 2021 estimated quarterly tax payment is due today.

Forms:

September 15, 2021

Estimated quarterly payments

The third 2021 estimated quarterly tax payment is due today.

If you are an S corporation or partnership that successfully filed for an extension, your tax return is now due.

Forms:

October 15, 2021

If you are a C corporation that filed for an extension, your income tax return is now due.

Forms:

November 1, 2021

Start making tax moves

End of year tax moves can help grow your business and reduce your taxable income for the calendar year. If you haven’t done so already, now’s the time to plan and take action.

December 31, 2021

Tax moves deadline

Today is the final day to make any tax moves for the 2021 tax year.

Set up a solo 401 (k)

If you are self-employed, today is the deadline to set up a solo 401 (k).

When can I start filing taxes for 2021?

You can start filing next year’s tax return on January 1, 2021.

When will I get my tax refund?

In 2018, 9 out of 10 e-filers received their refund less than 21 calendar days after their return was received by the IRS.

That’s not an IRS promise or anything. But in general, you can expect to get your tax refund 3-4 weeks after filing your return. That being said, these are unprecedented times. It’s impossible to say when you’d get your tax refund in 2021.

 

 

IRS Tax Forms and Publications

https://www.irs.gov/forms-instructions

 

 

Record Retention Guide

 

How long should I keep records?