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 |
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