Frequently Asked Questions

What are the Standard Deduction amounts for 2020?

  • Married Filing Joint – $24,800
  • Head of Household – $18,650
  • Single / Married Filing Separately – $12,400

What is the maximum Section 179 deduction for 2020?

  • $1,020,000 – and the deduction is limited for total fixed asset purchases over $2,550,000

What are the standard mileage rates for 2020?

  • Business – 57.5 cents per mile
  • Charitable – 14 cents per mile
  • Medical / Moving – 17 cents per mile

Do I have to run my bonus checks to employees through payroll?

  • Yes, the IRS requires you to run all bonus checks through your payroll system. If you did not do this and are not sure what to do, give us a call, and we will help you fix it.

What is the Personal Exemption amount for 2020?

  • The Tax Cuts and Jobs Act eliminated all personal exemptions.

What is the bonus depreciation percentage for 2020?

  • 100% of qualified new and used assets

What is the gift tax exclusion for 2020?

  • $15,000

How much earned income may I make in 2020 before I affect my social security payment amount?

  • All earned income below $18,240 will not affect your payment amount.
  • If you are under full retirement age, all earned income over $18,240 will reduce your social security benefit $1 for every $2 earned.
  • In the year you reach full retirement age, all earned income over $48,600 will reduce your social security benefit $1 for every $3.
  • After you reach full retirement age, your social security payments will not be reduced by your earned income, no matter how much money you make.
  • (see: Retirement Planner: Getting Benefits While Working)