Each year, the Internal Revenue Service (IRS) makes rounded inflationary adjustments to the federal income tax brackets and the income phase-outs for various tax deductions and tax credits. Although IRS Publication 17, Your Federal Income Tax, and IRS Publication 970, Tax Benefits for Education, won’t be updated until 2021, the IRS usually publishes the updated numbers in a Revenue Procedure in late October or early November. Tax BracketsThe tax-rate tables include seven tax brackets, with the following income ranges. The maximum Earned Income Tax Credit is $543 for no children, $3,618 for one child, $5,980 for two children and $6,728 for three or more children. The income limit for the Saver's Credit is $33,000 (single and married filing separately), $66,000 (married filing jointly) and $49,500 (head of household).

Source: Forbes November 01, 2020 18:22 UTC