With
the political wrangling that took place at the first of the year, we wanted to
pass along some basic tax information that is now in place. Below you will find
the new income tax brackets, some basic new tax rules, and the new retirement
account contribution limits for 2013.
2013
Federal Income Tax Brackets
Marginal
Tax Rate
|
Married
Filing Jointly
|
Single
|
10%
|
$17,850 and less
|
$8,925 and less
|
15%
|
$17,851 – $72,500
|
$8,926 – $36,250
|
25%
|
$72,501 – $146,400
|
$36,251 – $87,850
|
28%
|
$146,401 – $223,050
|
$87,851 – $183,250
|
33%
|
$223,051 – $398,350
|
$183,251 – $398,350
|
35%
|
$398,351 – $450,000
|
$398,351 – $400,000
|
39.6%
|
$450,001 and higher
|
$400,001 and higher
|
New Tax Basics for 2013
- Long-term capital gains and dividends taxed at 0% for the first two brackets, 20% for the top bracket, and remain at 15% for everyone else
- Payroll tax returns to 6.2%, from 4.2%, for everyone
- Medicare withholdings increase 0.9% for amounts over $250K married ($200K single)
- Additional 3.8% surtax on investment income for those with AGI over $250K married ($200K single)
