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 TAX CENTER EARNED INCOME TAX CREDIT (EITC) # of children | EIC Credit | Income: Single | Income: Married | 0 | $475 | $13,980 | $19,190 | 1 | $3,169 | $36,920 | $42,130 | 2 | $5,236 | $41,952 | $47,162 | 3 or more | $5,891 | $45,060 | $50,270 |
2013 FEDERAL INCOME TAX BRACKETS Rate | Single Filers | Married Joint Filers | Head of Household | 10% | $0 to $8,925 | $0 to $17,850 | $0 to $12,750 | 15% | $8,925 to $36,250 | $17,850 to $72,500 | $12,750 to $48,600 | 25% | $36,250 to $87,850 | $72,500 to $146,400 | $48,600 to $125,450 | 28% | $87,850 to $183,250 | $146,400 to $223,050 | $125,450 to $203,150 | 33% | $183,250 to $398,350 | $223,050 to $398,350 | $203,150 to $398,350 | 35% | $398,350 to $400,000 | 398,350 to $450,000 | $398,350 to $425,000 | 39.6% | $400,000 and up | $450,000 and up | $425,000 and up |
Standard or Itemized Deduction? Standard deduction is a fixed amount mandated by the Internal Revenue Service (IRS), which usually increases each tax year, as it gets adjusted based on inflation. A taxpayer's standard deduction will be based on key factors such as the filing status, age, visual ability, or disability. An itemized deduction details expenses allowable by the tax code such as mortgage interest payment, property tax, charitable contributions, unreimbursed employee expenses, casualty and losses, medical expenses, unreimbursed employee expenses, among other things. Both the standard and itemized deductions reduce the amount of a taxpayer's taxable income. Determining whether to use standard deduction or itemized deduction will be based on the amount of allowable itemized deductions a taxpayer could claim. If the itemized deduction is more than the standard deduction, then it would be most imperative to use it, as long as taxpayer has valid proof to substantiate the expenses. EVANGELINE'S TAX-RELATED COLUMNS ©Copyright 2008-2013 Evangeline Giron, Inc. |
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