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.
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.
ALLOWABLE MEDICAL DEDUCTIONS
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 7.5% of AGI for taxpayers under age 65.