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What's New for Federal Income Taxes for 2013?

Editor's Note: This article is part of our 2013 Tax Tips series. Robert Flach is an expert with almost 40 years of experience as a tax professional and also blogs as The Wandering Tax Pro.

NEW YORK (MainStreet) — Here are some tax facts and figures for 2013 that you will need to know when doing year-end tax planning:

SAME SEX MARRIAGES

The Supreme Court overturned the Defense of Marriage Act (DOMA). The Court decided that the federal government has no right to deny benefits to same-sex individuals who have married and reside in a state that has legalized same-sex marriage.

As a result of the decision, same-sex couples, who are legally married and reside in states that permit same-sex marriage, will be able to prepare their federal and state tax returns as a married couple, using married person tax law, same as any other married couple.

THE STANDARD DEDUCTION

  • Single/Married Filing Separate = $6,100
  • Married/Qualifying Widow(er) = $12,200
  • Head of Household = $8,950

The Standard Deduction for a dependent is the greater of (1) $1,000, or (2) the sum of $350 and the individual's earned income (up to $6,100).

The additional Standard Deduction amount for the age 65 or older or blind is $1,200 for married individuals and $1,500 for Single and Head of Household.

PERSONAL EXEMPTION

The personal exemption is $3,900.

THE PEP REDUCTION OF PERSONAL EXEMPTIONS

Personal exemptions are reduced by 2% for each $2,500 ($1,250 if Married Filing Separate), or portion thereof, that a taxpayer's AGI exceeds $250,000 for Single filers, $275,000 for Head of Household, $300,000 for Married Filing Joint and $150,000 for Married Filing Separate.

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