What you need to know when filing your 2013 tax returns

 

 

  • Personal Exemption-Each person or dependent exemption is worth $3,900

 

  • Standard Deduction-$12,400 for married couples filing a joint return, and qualifying widows and widowers-$6,200 for singles and married individuals filing separate returns-$9,100 for heads of household-$Taxpayers who are 65 and older or who may be blind may be eligible for a higher standard deduction.

 

  • Alternative minimum tax threshold-$80,800 for a married couple filing a joint return, and qualifying widows and widowers-$51,900 for singles and heads of household

 

  • Income tax brackets-10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent, 39.6 percent

 

  • Earned income tax creditTo qualify income can be no greater than:-$45,060 ($50,270 married filing jointly) with three or more qualifying children-$41,952 ($47,162 married filing jointly) with two qualifying children-$36,920 ($42,130 married filing jointly) with one qualifying child-$13,980 ($19,190 married filing jointly) with no qualifying children-Investment income cannot be more than $3,200 or less for the yearMaximum credit:-$5,891 with three or more qualifying children-$5,236 with two qualifying children-$3,169 with one qualifying child-$475 with no qualifying children

 

  • Capital gains:-0 percent if taxpayer is in the 10 percent or 15 percent income tax brackets-15 percent top rate if taxed in higher bracketsHolding Period-12 months or less: 39.6%-More than 12 months: 20%-Depreciation recapture on real estate: 25%-Collectibles and certain small business stock: 28%

 

  • Estate tax:-Taxed at a top rate of 35 percent in 2012, with the first $5.25 million in value exempted for individual estates

 

  • IRA contributions:-Traditional IRA contribution limit: $5,500-Additional contribution if over 50: $6,500

 

  • Deferred retirement accounts:-401(k), 403(b),: $17,500-Additional contribution if 50 or over: $5,500

 

  • Standard milage rate:-Business use: 56.5 cents per mile-Medical reasons or qualified move: 24 cents per mile-Charitable purposes: 14 cents per mile

 

 

Courtesy of the Denver Post: http://www.denverpost.com