Tax Season is just around the corner, so Intuit's Mike D'Avolio has compiled a comprehensive list of what you need to know for your own business or for you clients come tax time. Some of the highlights of the list are:
- Income tax rate increase for high earners beginning in tax year 2013
- Rates remain at 10%, 15%, 25%, 28%, 33% and 35%
- 39.6% rate applies to income above: $450,000 married filing joint, qualifying widow; $425,000 head of household; $400,000 single; $225,000 married filing separate (indexed for inflation after tax year 2013)
- Permanent alternative minimum tax relief beginning in tax year 2012 (retroactive)
- Increased exemption amounts: $51,900 single, head of household; $80,800 married filing joint, qualifying widow; $40,400 married filing separate (2013 amounts shown, indexed for inflation after tax year 2012)
- Nonrefundable personal credits allowed to offset regular tax and AM
- Higher threshold for deducting medical expenses
- Floor raised from 7.5% of AGI to 10%
- AGI floor for individuals age 65 and older will remain unchanged at 7.5% through 2016
- New Form 4684, Section C for Ponzi-type investment schemes
- Section C of Form 4684 replaces Appendix A in Rev Proc 2009-20
- 2013 Standard Mileage Rates
- Business: 56.5 cents/mile
- Medical and moving: 24 cents/mile
- Charitable: 14 cents/mile
A complete summary of these and other changes can be found here .