Outline of Major Tax Law Provisions in 2013 under Multiple Scenarios

April 12, 2012

Tax Brackets

Filing Status Tax Cuts Extended Tax Cuts Expire Obama Proposals
Single $0 to $8,875: 10%
$8,875 to $36,050: 15%
$36,050 to $87,300: 25%
$87,300 to $182,100: 28%
$182,100 to $395,850: 33%
$395,850+: 35%
$0 to $36,050: 15%
$36,050 to $87,300: 28%
$87,300 to $182,100: 31%
$182,100 to $395,850: 36%
$395,850+: 39.6%
$0 to $8,875: 10%
$8,875 to $36,050: 15%
$36,050 to $87,300: 25%
$87,300 to $182,100: 28%
$182,100 to $202,350: 33%
$202,350 to $395,850: 36%
$395,850+: 39.6%
MFJ $0 to $17,750: 10%
$17,750 to $72,100: 15%
$72,100 to $145,450: 25%
$145,450 to $221,650: 28%
$221,650 to $395,850: 33%
$395,850+: 35%
$0 to $60,200: 15%
$60,200 to $145,450: 28%
$145,450 to $221,650: 31%
$221,650 to $395,850: 36%
$395,850+: 39.6%
$0 to $17,750: 10%
$17,750 to $72,100: 15%
$72,100 to $145,450: 25%
$145,450 to $221,650: 28%
$221,650 to $245,500: 33%
$245,500 to $395,850: 36%
$395,850+: 39.6%
HOH $0 to $12,650: 10%
$12,650 to $48,300: 15%
$48,300 to $124,650: 25%
$124,650 to $201,900: 28%
$201,900 to $395,850: 33%
$395,850+: 35%
$0 to $48,300: 15%
$48,300 to $124,650: 28%
$124,650 to $201,900: 31%
$201,900 to $395,850: 36%
$395,850+: 39.6%
$0 to $12,650: 10%
$12,650 to $48,300: 15%
$48,300 to $124,650: 25%
$124,650 to $201,900: 28%
$201,900 to $225,900: 33%
$225,900 to $395,850: 36%
$395,850+: 39.6%

Tax Parameters

Name Tax Cuts Extended Tax Cuts Expire Obama Proposals
Ordinary Taxable Income Rates 10%, 15%, 25%, 28%, 33%, 35% 15%, 28%, 31%, 36%, 39.6% 10%, 15%, 25%, 28%, 33%, 36%, 39.6%
Standard Deduction Single: $6,050
MFJ: $12,100
HOH: $8,900
Single: $6,050
MFJ: $10,100
HOH: $8,900
Single: $6,050
MFJ: $12,100
HOH: $8,900
Long-Term Capital Gains Rate Single: $0 to $36,050: 0%
$36,050+: 15%

MFJ: $0 to $72,100: 0%
$72,100+: 15%

HOH: $0 to $48,300: 0%
$48,300+: 15%

Single: $0 to $36,050: 10%
$36,050+: 20%

MFJ: $0 to $60,200: 10%
$60,200+: 20%

HOH: $0 to $48,300: 10%
$48,300+: 20%

Single: $0 to $36,050: 0%
$36,050 to $202,350: 15%
$202,350+: 20%

MFJ: $0 to $72,100: 0%
$72,100 to $245,500: 15%
$245,500+: 20%

HOH: $0 to $48,300: 0%
$48,300 to $225,900: 15%
$225,900+: 20%

Qualified Dividends Rate Taxed as capital gains Taxed as ordinary income Dividends taxed as capital gains until taxable income exceeds:
Single: $202,350
MFJ: $245,500
HOH: $225,900
Personal Exemption Phaseout Threshold No phaseout Single: $177,000
MFJ: $265,550
HOH: $221,300
Single: $212,250
MFJ: $265,550
HOH: $212,250
Itemized Deduction Phaseout Threshold No phaseout Single: $177,000
MFJ: $177,000
HOH: $177,000
Single: $212,250
MFJ: $265,350
HOH: $212,250
Child Tax Credit (per child) $1,000 $500 $1,000
Refundable Child Tax Credit Refundable to the extent of 15% of AGI in excess of $3,000 Refundable against payroll taxes for families with 3 or more children Refundable to the extent of 15% of AGI in excess of $3,000
Child and Dependent Care Credit Limited to $3,000 ($6,000 for two or more children) in expenses, top credit percentage of 35%, phase-out begins at $15,000 in earned income Limited to $2,400 ($4,800 for two or more children) in expenses, top credit percentage of 30%, phase-out begins at $10,000 in earned income Limited to $3,000 ($6,000 for two or more children) in expenses, top credit percentage of 35%, phase-out begins at $15,000 in earned income
AMT Exemption Level Single: $48,450
MFJ: $74,450
HOH: $48,450
Single: $48,450
MFJ: $74,450
HOH: $48,450
Single: $48,450
MFJ: $74,450
HOH: $48,450
AMT Bracket $175,000 $175,000 $175,000
AMT Exemption Phaseout Threshold Single: $112,500
MFJ: $150,000
HOH: $112,500
Single: $112,500
MFJ: $150,000
HOH: $112,500
Single: $112,500
MFJ: $150,000
HOH: $112,500

EITC Parameters

Tax Cuts Extended Tax Cuts Expire Obama Proposals
No Children Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers
Credit Rate 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
Phase-out Rate 7.65% 7.65% 7.65% 7.65% 7.65% 7.65%
Earned Income Threshold $6,330 $6,330 $6,330 $6,330 $6,330 $6,330
Maximum Credit $484 $484 $484 $484 $484 $484
Phase-Out Threshold $12,920 $7,920 $7,920 $7,920 $12,920 $7,920
Phase-Out Limit $19,250 $14,250 $14,250 $14,250 $19,250 $14,250
One Child Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers
Credit Rate 34% 34% 34% 34% 34% 34%
Phase-out Rate 15.98% 15.98% 15.98% 15.98% 15.98% 15.98%
Earned Income Threshold $9,500 $9,500 $9,500 $9,500 $9,500 $9,500
Maximum Credit $3,230 $3,230 $3,230 $3,230 $3,230 $3,230
Phase-Out Threshold $22,420 $17,420 $17,420 $17,420 $22,420 $17,420
Phase-Out Limit $42,633 $37,633 $37,633 $37,633 $42,633 $37,633
2 Children Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers
Credit Rate 40% 40% 40% 40% 40% 40%
Phase-out Rate 21.06% 21.06% 21.06% 21.06% 21.06% 21.06%
Earned Income Threshold $13,340 $13,340 $13,340 $13,340 $13,340 $13,340
Maximum Credit $5,336 $5,336 $5,336 $5,336 $5,336 $5,336
Phase-Out Threshold $22,420 $17,420 $17,420 $17,420 $22,420 $17,420
Phase-Out Limit $47,757 $42,757 $42,757 $42,757 $47,757 $42,757
3 Children Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers Married Filing Jointly Other Taxpayers
Credit Rate 45% 45% Same as credit for 2 or more children. Same as credit for 2 or more children. 45% 45%
Phase-out Rate 21.06% 21.06% Same as credit for 2 or more children. Same as credit for 2 or more children. 21.06% 21.06%
Earned Income Threshold $13,340 $13,340 Same as credit for 2 or more children. Same as credit for 2 or more children. $13,340 $13,340
Maximum Credit $6,003 $6,003 Same as credit for 2 or more children. Same as credit for 2 or more children. $6,003 $6,003
Phase-Out Threshold $22,420 $17,420 Same as credit for 2 or more children. Same as credit for 2 or more children. $22,420 $17,420
Phase-Out Limit $50,924 $45,924 Same as credit for 2 or more children. Same as credit for 2 or more children. $50,924 $45,924

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