The IRS has published its official 2013 changes reflecting annual inflation adjustments and tax table updates from the recently passed Fiscal Cliff legislation, officially known as the American Taxpayer Relief Act of 2012. Key changes include:
- For 2013 the 39.6 percent tax rate has been reinstated for individuals whose income exceeds $400,000 ($450,000 for married taxpayers filing a joint return). The other 2013 marginal tax rates remain the same as in prior years with some tax bracket adjustments for inflation.
- The standard deduction in 2013 rises to $6,100/$12,200 (single/married) up from $5,950/$11,900. However the fiscal cliff legislation (ATRA act of 2012) reinstated limitations for itemized deductions claimed on 2013 returns of individuals with incomes greater than $250,000/$300,000 (single/married).
- The personal exemption rises to $3,900, up from the 2012 exemption of $3,800. However beginning in 2013, the exemption is subject to a phase-out that begins with adjusted gross incomes of $150,000 ($300,000 for married couples filing jointly). It phases out completely at $211,250 ($422,500 for married couples filing jointly).
- The Alternative Minimum Tax (AMT) exemption amount for tax year 2013 is $51,900 ($80,800, for married couples filing jointly). The 2012 exemption amount was $50,600 ($78,750 for married couples filing jointly).
- The maximum Earned Income Credit (EITC) amount is $6,044 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $5,891 for tax year 2012.
- Estates of decedents who die during 2013 have a basic exclusion amount of $5,250,000, up from a total of $5,120,000 for estates of decedents who died in 2012.
- For tax year 2013, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transit passes and transportation in a commuter highway vehicle is $245, up from $240 for tax year 2012 (the legislation provided a retroactive increase from the $125 limit that had been in place).
Here is the final 2013 tax table:
Source : IRS