April 12, 2012
Outline of Major Tax Law Provisions in 2013 under Multiple Scenarios
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% HOH: $0 to $48,300: 0% |
Single: $0 to $36,050: 10% $36,050+: 20% MFJ: $0 to $60,200: 10% HOH: $0 to $48,300: 10% |
Single: $0 to $36,050: 0% $36,050 to $202,350: 15% $202,350+: 20% MFJ: $0 to $72,100: 0% HOH: $0 to $48,300: 0% |
| 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 |
Was this page helpful to you?
Yes!
No
Thank You!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationShare This Article!
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback