- Tax Day is April 15, 2021
- Standard deduction has changed for all filers (2020 Tax Year)
- $12,550 Single taxpayers
- $25,100 Married taxpayers
- $18,800 Head of Household taxpayers
- Personal exemptions eliminated for 2020
- There will be no personal exemption for dependents or taxpayers on the 2020 tax return
- Contribution limits on health savings accounts are going up.
- Health savings accounts (HSA) let people with high-deductible health plans set money aside on a pre-tax basis to cover the costs of their healthcare. For 2020, the contribution limit for individual policies be $3,550, but the maximum contribution for family policies is $7,100. A catch-up contribution of $1,000 for those 55 or older will continue to apply.
- Health savings accounts limits for 2021:
- $3,600 for individual coverage
- $7,200 for family coverage
- The Earned Income Credit is rising.
- The maximum allowable Earned Income Credit will go up slightly in 2020. For those with three or more qualifying children, the maximum credit will rise to $6,728, up $68.