Numbers for use in 2013 Returns

Every year, the IRS adjusts many of the common tax deductions for inflation.  Among these are the standard deduction for each filing status, the personal exemption allowance, and the maximum allowable Earned Income Credit for qualifying families.  For the tax year 2013, the agency has also added a new tax rate for those who earn $400,000 or more in a single year.

Deduction limits for 2014

The most common deductions and credits used by taxpayers include the personal exemption, the standard deduction, and the Earned Income Credit.  For 2013, the updated amounts for these deductions and credits are as follows:

• The personal exemption allowance will go up to $3,900 per person.  This is an increase of $100 over the previous tax year.
• The maximum amount of Earned Income Credit available to families with three qualifying children will be $6,044.  This amount is available to couples who file a joint return and whose income falls within the middle of the income threshold for the credit.
• The standard deduction for the 2013 tax year will also go up.  Married couples filing a joint return will be eligible for a standard deduction of $12,200, while single filers will be eligible for a standard deduction of $6,100.

2013 Tax Table Rates

Most of the tax rates are unchanged for 2013, but the IRS has added a higher rate for those who earn more than $400,000 each year.  The tax rates are as follows:

• 10 % – for income of up to $17,850 for married couples filing jointly; $8,925 for single filers; $12,750 for head of household filers
• 15% – for income of up to $72,500 for married couples filing jointly; $36,250 for single filers; $48,600 for head of household filers
• 25% – for income of up to $146,400 for married couples filing jointly; $87,850 for single filers; $125,450 for head of household filers
• 28% – for income of up to $223,050 for married couples filing jointly;  $183,250 for single filers; $203,150 for head of household filers
• 33% – for income of up to $398,350 for married couples filing jointly; $398,350 for single filers; $398,350 for head of household filers
• 35% – for income of up to $450,000 for married couples filing jointly; $400,000 for single filers; $425,000 for head of household filers
• 39.6% – for income of $450,000 and over for married couples filing jointly; $400,000 and over for single filers; $425,000 and over for head of household filers

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Pittsburgh, Allison Park, Hampton, Shaler, Glenshaw.

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