• Beginning in tax year 2013 (generally for tax returns filed in 2014), a new tax rate of 39.6 percent has been added for individuals whose income exceeds $400,000 ($450,000 for married taxpayers filing a joint return).
The other marginal rates 10, 15, 25, 28, 33 and 35 percent remain the same as in prior years.
• The standard deduction rises to $6,100, or $12,200 for married couples filing jointly. That is up from $5,950, or $11,900 for married couples filing jointly, for tax year 2012.
• The American Taxpayer Relief Act of 2012 added a limitation for itemized deductions claimed on 2013 returns of individuals with incomes of $250,000 or $300,000 for married couples filing jointly.
• The personal exemption rises to $3,900, up from the 2012 exemption of $3,800. However beginning in 2013, the exemption is subject to a phase-out that begins with adjusted gross incomes of $150,000 for individuals and $300,000 for married couples filing jointly. It phases out completely at $211,250 for individuals and at $422,500 for married couples filing jointly.
• The Alternative Minimum Tax exemption amount for tax year 2013 is $51,900, or $80,800, for married couples filing jointly, set by the American Taxpayer Relief Act of 2012, which indexes future amounts for inflation. The 2012 exemption amount was $50,600 for individuals and $78,750 for married couples filing jointly.
• The maximum Earned Income Credit amount is $6,044 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $5,891 for tax year 2012.
• Estates of those who die during 2013 have a basic exclusion amount of $5,250,000, up from a total of $5,120,000 for estates of decedents who died in 2012.
• For tax year 2013, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transit passes and transportation in a commuter highway vehicle is $245, up from $240 for tax year 2012. The legislation provided a retroactive increase from the $125 limit that had been in place.