For individuals or residents of the United States, if you meet specific income thresholds you will have to file federal income taxes for the year (the IRS also includes resident of Puerto Rico as having to file U.S. taxes). There may also be other rules at the state level which will be important to look into. The thresholds are based off the individuals gross income, which includes all income that is not exempt from tax. Varying filing status will have different income thresholds, as provided in the image below. For additional information, we recommend consulting page 7 of Publication 17.
Currently there are some rules around including or not including someone in the exemptions category for 1040s when filing federal taxes. In 2014, if the adjusted gross income is $152,525 or less, the individual or family can get $3,950 times the number of exemptions as a deduction. More information is provided on the personal exemptions page.
The IRS currently provides the following explanation around whether or not someone can be included as a depended. There is the qualifying child test which tests to see if the child is truly your child and can be claimed based on age and whether or not they are a student. However, there is also the qualifying relative test, which doesn’t have an age limit but does look at 4 different factors before allowing the individual to claim and exception for a person. The 4 different factors revolve around confirming that a) the person is not part of the child test b) making sure the member is part of the household c) income test of the dependent to see if the income is low enough to be considered a dependent and d) support test to see that you have provided support for this dependent.
We highly recommend that you look through Publication 17 since it will provide additional insights and will help with you making your final decision on whether or not to claim someone as a exemption. Page 31-38 in Pub 17 provides rules around whether or not a person can be claimed as a exemption (dependent) along with multiple examples. The image below provides details from the IRS around age restrictions for claiming exemptions (click on the image to see it in full size).
In the 2013 Form 1040 “U.S. Individual Income Tax Return” there is a section on the first page titled “Exemptions”. For 2013, the personal exemptions deduction is $3,900 per exemption, which is higher than the amount in 2012 ($3,800). The exemption will lower the amount of taxable income for the taxpayer (this will then lower the amount of taxes that have to be paid by the taxpayer). In 2013, this exemption will phase out for the taxpayer if the adjusted gross income (AGI) is above the following according to IRS publication 17:
Married filing jointly: $300,000
Married filing separately: $300,000
Head of Household: $275,000
You can generally claim a personal exemption for yourself (one exception being if you are being claimed on another person’s tax form you can’t claim yourself) and possibly for your wife and kids. The number of exceptions are then totaled up in 6d and then calculated in line 42 in the tax and credits section (screenshot provided below).
Additional details are provided on page 25 of publication 17. I would highly recommend reading this section since there are many rules around whether or not you can claim someone as a personal exemption. If there is any confusion, I would highly recommend reaching out to a professional tax consultant. The image below from page 26 of publication 17 provides additional insights on whether someone can be claimed as a dependent.
The 2013 IRS publication 17 “Your Federal Income Tax For Individuals” notes on page 261 that for taxable income exceeding $100,000, the taxpayer should use the tax computation worksheet instead of using the IRS tax tables.
The IRS tax computation worksheet will provide a tax estimate based on the taxpayers taxable income depending on their filing status (Single, Married filing jointly, Married filing separately, and Head of Household). Provided below is a screenshot of page 262 of the publication 17 (the publication can be downloaded directly from the IRS through the link above or you can request for a copy to be mailed directly to you) which provides the tax computation worksheet.
The 2014 IRS publication 17 “Your Federal Income Tax For Individuals” provides the latest IRS tax tables for tax year 2014 on page 250 of the document. Publication 17 is a comprehensive publication which provides insights for filing your individual federal income tax. We have also provided the tax brackets and rates here which are more for informational purposes. Our “2013 Federal Taxes” page provides additional insights on filing your annual federal taxes and is our most comprehensive page. We recommend using the tax tables rather than the tax brackets to accurately estimate the amount of taxes owed.
The images (a full size image will show when the thumbnail is clicked) provided below show how the IRS tax tables look like. Depending how you plan to file your taxes (Single, Married filing jointly, Married filing separately, and Head of Household), the tax table will provide the taxpayer with the amount of tax for 2014 based on their taxable income. The tax tables are roughly 11 pages long and will provide tax amounts for taxable income between $0-$100,000. If the taxable income is over $100,000 the publication recommends using the tax computation worksheet which is provides on page 262.
The 2014 tax tables are provided below. The IRS provides a separate document which can be downloaded here which provides just the tax tables.
2013 Tax Tables:
The IRS publication 17 “Your Federal Income Tax For Individuals” is available to download here from the IRS website. A copy of the publication can also be mailed directly to you for free through the order page here from the IRS.
IRS Publication 17 is a 288 page document provided by the IRS on an annual basis which provides an overview for filing taxes for the specific tax year. The 2013 version is split into six sections (the income tax return, income, gains and losses, adjustments to income, standard deduction and itemized deductions, and figuring your taxes and credits) and has a tax table towards the end of the publication where the tax payer can compute their tax amount based on their taxable income.
The 2013 tax brackets and rates can be found here and in the publication (however, these are more for reference purposes). Our “2013 Federal Taxes” page provides additional insights on filing your annual federal taxes.
Provided below are the 2013 federal income tax brackets and tax rates for taxes due April 15th 2014 for the filer’s taxable income. Additional insights can be found in the annual copy of the IRS publication 17 “Your Federal Income Tax For Individuals”. Further below we have provided the full tax brackets and rates from page 263 of the publication.
The IRS recommends that the taxpayer use the 2013 tax table which is provided on page 250 of the publication (these brackets are more for reference purposes). For further insights around filing your 2013 federal income taxes, please visit our main 2013 guide here.
|Tax Rate||Single||Married Filing
|Head of Household|
|10%||Up to $8,925||Up to $17,850||Up to $8,925||Up to $12,750|
|15%||$8,926 to $36,250||$17,851 to $72,500||$8,926 to $36,250||$12,751 to $48,600|
|25%||$36,251 to $87,850||$72,501 to $146,400||$36,251 to $73,200||$48,601 to $125,450|
|28%||$87,851 to $183,250||$146,401 to $223,050||$73,201 to $111,525||$125,451 to $203,150|
|33%||$183,251 to $398,350||$223,051 to $398,350||$111,526 to $199,175||$203,151 to $398,350|
|35%||$398,351 to $400,000||$398,351 to $450,000||$199,176 to $225,000||$398,351 to $425,000|
|39.6%||Over $400,001||Over $450,001||Over $225,001||Over $425,001|
For further insights around filing your 2013 federal income taxes, please visit our main 2013 guide here. For insights around the 2013 federal income tax brackets And rates, please visit our page here.
The standard deduction is the deduction which a individual (or family) can take if they forgo the ability to itemize their expenses (Form Schedule A) from a list of allowable expenses. Generally, it is best to choose the option which will allow the individual to pay lower taxes (therefore, it is generally recommended to choose the option which has more deductions). These deduction will lower your income tax expense by lowering the taxable income. Below are the standard deduction for 2013 tax year for federal tax returns. You may not take a standard deduction if you are being claimed as a dependent on another person’s tax form.
|Married, Filing Jointly||$12,200|
|Head of Household||$8,950|
|Married, Filing Separately||$6,100|
The IRS provides full details in their Publication 501 “Exemptions, Standard Deduction, and Filing Information” for 2013. Provided below is the 2013 filing requirements chart for most taxpayers from the publication which provides the standard deduction. There are specific conditions which can increase your standard deduction such as being over the age of 65. The IRS provides this page to help decide your standard deduction.
The standard deduction is the deduction which the individual can take if they forgo the ability to itemize their expenses (Form Schedule A) from a list of allowable expenses. Generally, it is best to choose the option which will allow the individual to pay lower taxes (therefore, generally choose the option which has more deductions). These deductions help to lower your income tax expense by lowering the taxable income which can be put into the 2011 federal tax brackets. Below are the standard deduction for 2011 tax year for federal tax returns. You may not take a standard deduction if you are being claimed as a dependent on another tax form.
|Married, Filing Jointly||$11,600|
|Head of Household||$8,500|
|Married, Filing Separately||$5,800|
There are specific conditions which can also increase your standard deduction such as being blind or being over the age of 65. If you are unmarried, you can add $1,450 to your standard deduction for each condition met. If you are married, you can add $1,150 for each condition met. The IRS provides full details in their Publication 501.
The following is the 2011 Federal Tax Brackets for income tax. Income tax in the United States is accessed after taking specific deductions, which can include your standard deduction or itemized deductions (Schedule A), and your personal exemptions. Your standard deduction will vary depending on whether you are filling as an individual, married filing jointly, or head of household. When filing taxes, the individual will need to choose whether to take the standard deduction or itemize deductions from a list provided in Schedule A. The amount of income tax paid can vary widely depending on whether the individual is filing as an individual, as married filing jointly, or as head of household since the tax brackets will vary (as shown in the table below). If you have any questions, please feel free to ask.
|Tax Rate||Single||Married Filing Jointly||Head of Household|
|10%||$0 – $8,500||$0 – $17,000||$0 – $12,150|
|15%||$8,500 – $34,500||$17,000 – $69,000||$12,150 – $46,250|
|25%||$34,500 – $83,600||$69,000 – $139,350||$46,250 – $119,400|
|28%||$83,600 – 174,400||$139,350 – $212,300||$119,400 – $193,350|
|33%||$174,400 – $379,150||$212,300 – $379,150||$193,350 – $379,150|