I know this isn’t everyone’s favorite topic… in fact I don’t know if it is ANYONE’S favorite topic!
Regardless, the inflation adjusted 2013 tax rate tables were recently released by the IRS (along with other inflation adjusted items) and this is important information if you do any tax planning at all.
Keep in mind, the information below is for 2013. You’ll file your tax return for 2013 in 2014. The taxes you’ll be filing in early 2013 is actually your 2012 tax return. In case you missed it, I did cover the 2013 IRA, 401(k) and retirement contribution limits here.
2013 Tax Rate Tables
2013 Standard Deduction
- Single – $6,100
- Married Filing Jointly – $12,200
- Head of Household – $8,950
- Married Filing Separately – $6,100
- Additional Standard Deduction Amount for Aged or Blind – $1,200
- Additional Standard Deduction Amount for Aged or Blind if Unmarried and Not a Surviving Spouse – $1,500
2013 Personal Exemptions
Personal exemptions are $3,900 each subject to phase outs.
Other IRS Inflation Adjusted Items for 2013
- Adoption Credit
- Child Tax Credit Refundable Amount
- Hope Scholarship Credit
- Earned Income Credit
- Alternative Minimum Tax (AMT) Exemption Amounts
- Overall Limitation on Itemized Deductions
- Qualified Transportation Fringe Benefit
- Adoption Assistance Programs
- Interest on Education Loans Phase Out
- Unified Credit Against Estate Tax
To find out more about a particular tax item, phase outs or other items make sure to check out IRS Rev Proc 13-15. This is the official IRS announcement for the items discussed in today’s tax update. Make sure to tune in tomorrow when I explain how marginal tax rates work in the United States.
An accountant by day and blogger by night, Lance is the owner of this site. 
I’m always glad when things adjust for inflation. Frankly, I realize prizes rise, but I don’t feel the affects of inflation too much when we purchase things (our budget numbers haven’t changed in years). So, if the govt is going to give me some extra deductions based on inflation, then I’ll all for it!
Jason recently posted..How to Save Money On Your New House
OOO I want rising PriZes! Just kidding of course. I understand what you meant. I agree with your assessment on the inflation adjustments!
Thanks for the info Lance! I for one am glad that they finally put a permanent patch of the AMT.
John S @ Frugal Rules recently posted..Giveaway: Can You Challenge Yourself Not to Spend Money?
Me too! One less headache for tax accountants every year!
I agree with Jason–my budget is still the same in terms of fixed costs, etc, so I don’t mind the inflation adjustments.
The Happy Homeowner recently posted..Do No Spend Days Really Work? (and a CASH GIVEAWAY!)
I don’t either, less taxes to pay on the same income is always nice! I’m glad they don’t adjust the rates for inflation. That’d be a nightmare!
This just reminds me that I need to find a CPA this year haha. Thanks and I don’t mind things going up, it just means you can save more for retirement, HSA, etc
Harry @ PF Pro recently posted..Save $500 on a New iPhone 5 Through Walmart/Straight Talk
And tax brackets going up means you pay less tax! YAY!