Tax Changes for 2013

Residential Energy Tax Credits are Back (Principal Residence only with a lifetime maximum amount of $500)

Starting with 2013 taxpayers under 65 won’t be able to deduct medical expenses until they exceed 10% of AGI, up from 7.5% in 2012.

Maximum amount of Earned Income Credit for 2013 is $6,044 with claiming 3 children.

Maximum Social Security Wages were raised to $113,700 up from $110,100. That makes withholding taxes for social security go to $7,049.40 up from $4,624.20.

The standard deduction for 2013 for MFJ & QW will be $12,200. HOH will be $8,950. Single and MFS will be $6,100.

Capital gains rates for 2013 and beyond now can go up as high as 20% of the gain.

The tax brackets have been restructured with the largest now being 39.6%.

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