Editor's Note: This article is part of our 2014 Tax Tips series. Robert Flach is an expert with more than 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.
NEW YORK (MainStreet) There is really nothing new for the average middle class taxpayer on the 2013 Form 1040 except for the annual indexing for inflation.
Here are the new inflation-adjusted numbers for 2013.
The Personal Exemption is $3,900.
The Standard Deduction amounts are
- Single (and Married Filing Separate) = $6,100
- Married Filing Joint = $12,200
- Head of Household = $8,950
- Dependent = the greater of earned income plus $350 or $1,000, not to exceed $6,100.
The additional Standard Deduction amounts for taxpayers who are age 65 and older or blind are
- Single or Head of Household = $1,500
- Married (Joint or Separate) = $1,200
The standard mileage allowance rates are
- Business Mileage = 56.5 cents per mile
- Medical and Moving Mileage = 24 cents per mile
- Charitable Mileage = 14 cents per mile
The Alternative Minimum Tax (AMT) exemption amounts are
- $51,900 - Single and Head of Household
- $80,800 - Married Filing Joint and Qualifying Widow(er)
- $40,400 - Married Filing Separate
The AMT exemption is reduced as Alternative Minimum Taxable Income exceeds
- $115,400 Single and Head of Household
- $153,900 Married Filing Joint and Qualifying Widow(er)
- $ 76,950 Married Filing Separately
The 28% AMT tax rate kicks in at AMT net taxable income (after the exemption allowed) of $179,500 ($89,750 for Married Filing Separate).
The "kiddie tax" unearned income threshold is $2,000.
The maximum amount of wages subject to the 6.2% Social Security tax is $113,700. The maximum Social Security tax withholding is $7,049.40. The maximum Social Security component of the self-employment tax is $14,098.80.
The only other thing new for 2013 that applies to all taxpayers is the increase in the exclusion for medical expenses. For taxpayers under age 65 medical expenses are deductible on Schedule A only to the extent that the total allowable expenses exceed 10% of Adjusted Gross Income. The exclusion remains at 7½% for taxpayers age 65 and older.
The 2013 Form 1040 is, line for line, exactly the same as the 2012 Form 1040. The only difference is that Line 60 now identifies the new Forms 8959 and 8960, which are used to calculate the new "Obamacare" taxes for "high income" taxpayers.
Written by Robert D. Flach for MainStreet