Child Tax Credit

The child tax credit totals are $2000.00 per qualifying child and is not adjusted for inflation. However, the refundable portion of the Child Tax Credit is adjusted for inflation but will remain at $1400.00 for 2020.

Annual Gift Tax Exclusion Amount

The annual federal gift tax exclusion allows you to gift up to $15,000.00 to as many people as you wish without those gifts counting against your $11.58 million lifetime exemption. The exclusion is increased to $157,000.00 for gifts to spouses who are not citizens of the United States.

2020 Tax Rates for Long Term Capital Gains

Long term capital gains are taxed using different brackets and rates than ordinary income.

Single Individuals:

The first $40,000.00 of long term capital gains is taxed at 0%.

Long term capital gain income from $40,001.00 to $441,450.00 is taxed at 15%.

Long term capital gain income of $441,451.00 or more is taxed at 20%.

Short term capital gain income is taxed as ordinary income.

Married Filing Jointly:

The first $80,000.00 of long term capital gains is taxed at 0%.

Long term capital gain income from $80,000.00 to $496,000.00 is taxed at 15%.

Long term capital gain income of $496,601.00 or more is taxed at 20%.

Short term capital gain income is taxed as ordinary income.

Head of Household:

The first $53,600.00 of long term capital gains is taxed at 0%.

Long term capital gain income from $53,601.00 to $469,050.00 is taxed at 15%.

Long term capital gain income of $469,051 or more is taxed at 20%.

Short term capital gain income is taxed as ordinary income.

Married Filing Separately:

The first $40,000.00 of long term capital gains is taxed at 0%.

Long term capital gain income of $40,001.00 to $248,300.00 is taxed at 15%.

Long term capital gain income of $248,301.00 or more is taxed at 20%.

Short term capital gain income is taxed as ordinary income.

Additional Net Investment Income Tax.

Single Individuals and Head of Households:

Modified Adjusted Gross Income (MAGI) above $200,000.00 is taxed an additional 3.8%.

Married Filing Jointly:

Modified Adjusted Gross Income (MAGI) above $250,000.00 is taxed an additional 3.8%.