The Internal Revenue Service has updated various tax parameters for the year 2013 in IR-2013-4 and Revenue Procedure 2013-15. As Robert Flach points out, "Now that the American Taxpayer Relief Act of 2012 has become law the IRS has issued the balance of the annual inflation adjustments for 2013."
The following items were updated for the year 2013:
- 2013 tax rates were released, including the new 39.6% tax bracket.
- The standard deduction is set at $6,100 for singles and $12,200 for married couples filing jointly.
- Itemized deductions will start to be reduced at $250,000 of income for singles and at $300,000 for married couples filing jointly.
- Personal exemptions are set at $3,900 per taxpayer or dependent, and personal exemptions will start to be reduced at $250,000 of income for singles and at $300,000 for married couples filing jointly.
- The alternative minimum tax exemption amount is set at $51,900 for single and head of household filers and at $80,800, for married couples filing jointly. One of the provisions in the American Taxpayer Relief Act is that AMT exemption amounts are to be indexed for inflation annually by the IRS.
- The maximum earned income tax credit is $6,044 for married couples filing jointly with three or more eligible dependents.
- The unified estate and gift tax credit is $5.25 million.
- Up to $245 per month can be provided as a tax-free employee benefit for mass transit and commuter highway vehicles.