The IRS has announced the tax rates and income brackets for 2019, and besides slight adjustments in the income ranges for inflation, they look the same as this past year’s.
Remember, these are the brackets for the 2019 tax year, which means they will affect the taxes you file in 2020.
The seven brackets and marginal rates are unaffected from 2018, when the Tax Cuts & Jobs Act took effect. The income ranges have changed, however, are slightly different, as noted above.
The standard deduction, which was doubled under the tax law, will also increase by $200 for single filers and by $400 for married couples filing jointly, to $12,200 and $24,400, respectively.
And if you want to know a few more important financial numbers for 2019, here are your 401(k), IRA and SEP IRA contribution limits. Your 401(k) contributions will reduce your taxable income: Multiply your contributions for the year by your marginal tax rate, and you’ll have the amount of money you’ll save on taxes (for example, if you’re putting $5,000 in your 401(k) and you’re in the 24 percent tax bracket, you’ll save $1,200 on taxes).