What Uncle Sam’s IRS has in store for you in 2013

By Dian Vujovich

If you’ve been holding your breathe in anticipation of how the new tax laws will impact everything from your income to any inheritance that may come your way, what follows are a few of the details.

I’m figuring no drum roll is necessary. So in no particular order, here are some details from Uncle Sam about the annual inflation adjustments for 2013 with respect to the new American Taxpayer Relief Act of 2012:

•The tax rates.  Starting this year and for tax returns that will be filed in 2014, the rate of 39.6 percent impacts individuals with incomes over $400,000 and married taxpayers filing jointly with income over $450,000.

•The other marginal tax rates have not been changed and remain as they have been at 10, 15, 25, 28, 33 and 35 percent.

A couple of particulars about those income tax rates:  For married individuals filing joint returns and surviving spouses, if their  taxable income is not over $17,850, the tax rate  is 10 percent of the taxable income. But,  if their income is over $450,000, the tax is $125,846 plus 39.6 percent of the excess over $450,000.

For the head of a household, if  taxable income is not over $12,750, the tax rate  is 10 percent. If it is over $425,000,  the tax is $121,394.50 plus 39.6% of the excess over $425,000.

For  unmarried individuals, other than surviving spouces and heads of households the taxable income rate is 10 percent for those with taxable incomes under $8925. For taxable incomes over $400,000, the tax would be $116,163.75 plus 39.6% of the excess over $400,000.

•Standard deductions have gone up 150 bucks from individuals. It now is $6,100 —up from $5,950. For married filing jointly, the deduction is now $12,200—that’s up 300 bucks.

•The personal exemption is up $100.  It is now $3,900. But beginning this year, 2013, it is subject to a phase-out for those with adjusted gross incomes of $250,000 ($300,000 for married filing jointly). Have taxable income of more that $372,500 and the exclusion disappears completely for individuals and at the taxable income level of $422,500 it’s gonzo for those who are married and file jointly.

•Basic exclusions on estates from those who leave us in 2013 is $130,000 more than it was. It now is $5,250,000 up from $5,120,000 last year.

•The Alternative Minimum Tax exemption for 2013 has also been increased. It is now $51,9000 for individuals and $80,800 for married couples filing jointly

And of course there is much more.

My source: An IRS email received Friday. For additional details see Revenue Procedure 2013-15.