The Internal Revenue Service announced on Wednesday the tax year 2020 annual inflation adjustments for a large number of provisions (these figures will be used for tax returns filed in 2021).
None of the individual changes are earth shattering—annual inflation adjustments rarely are—but being aware of the where the numbers stand for your clients may be valuable nonetheless.
The highlights include small increases in the various standard deductions (between $200 and $400 depending on filing status) and a somewhat larger increase, $140,000, in the gift and estate tax exclusion amount. Although even that seemingly large bump is pretty much a drop in the bucket for an exclusion amount that now stands at $11,580,000 (doubled for married couples due to portability).
All of the adjustments can be found here.
