Personal Exemptions – 2013 Federal IRS Taxes

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
Single: $250,000
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.

IRS Tax Computation Worksheet

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.

2013 IRS Tax Tables

The 2013 IRS publication 17 “Your Federal Income Tax For Individuals” provides the latest IRS tax tables for tax year 2013 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.

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 2013 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.

IRS Publication 17 – “Your Federal Income Tax”

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.

2013 Federal Income Tax Brackets And Rates

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
Jointly
Married Filing
Separately
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

From the IRS 2013 Publication 17:

Standard Deduction For 2013 – Federal Taxes

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.

Tax Rate Single
Single $6,100
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.

Federal Standard Deduction 2011

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.

Tax Rate Single
Single $5,800
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.

Federal Tax Brackets 2011

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
33% $379,150+ $379,150+ $379,150+

$8000 Tax Credit For Home Buyers

As part of the American Recovery and Reinvestment Act of 2009, new home owners may be able to get a $8,000 tax credit if they qualify. The tax credit is worth $8,000, or 10% of the home value, whichever is lower. Qualifications include:

CNN also provides additional details here on the tax credit.

If you have any questions, please don’t hesitate to comment below.

President Obama’s Homeowner Affordability and Stability Plan

What is the tax benefit that you might have from this plan?

This Stability Plan is part of the President’s comprehensive strategy to get the economy back on track. The plan will help many home owners restructure their home mortgages and avoid foreclosure or help save money on their mortgage. Every MORTGAGEE should try and see if this act helps them reduce payment. Every reduction in payment will help the economy.

As a second piece of the Home price stablization plan, government is offering $8000 tax credit for the first time home buyers. First time home buyer is defined as one who has not owned a home for last three years. This is HUGE, imagine your price from the purchase cut down $8,000; in other words, it is like uncle sam is paying $8,000 towards your new house. One should not lose this golden opportunity, once in a life time opportunity.

This is differnt than one from 2008, in 2008 tax credit of $7,500 was offered, but that was to be paid back to the government over five year. This $8,000 creadit for year 2009 does not have to be re-paid to the government. This a true $8K credit to your tax bill, and not to be re-paid to the givernment. Your openion is importatnt please share with the other readers. Good luck with the credit, go out and buy a HOME!