The Internal Revenue Service released annual inflation adjustments for 2013 on Monday as well as several other changes from last year’s American Taxpayer Relief Act.
In 2013, a new 39.6 percent has been added for individuals whose income exceeds $400,000, according to IRS spokeswoman Dianne Besunder. This will apply for tax returns filed in 2014.
The standard deduction rises from $5,950 to $6,100 and $11,900 to $12,200 for married couples filing jointly.
In addition, the personal exemption rises from $3,800 to $3,900. However, the exemption is subject to a phase-out in 2013 that begins with adjusted gross incomes of $250,000 – or $300,000 for married couples. It phases out completely at $372,500 or $422,500 for married couples.
The alternative minimum tax exemption amount for 2013 is $51,900. The 2012 amount was $50,600.
The maximum earned income credit amount is $6,044 for taxpayers filing jointly who have three or more qualifying children, which is up from $5,891 in 2012.
There will be an exclusion amount of $5.2 million for estates of decedents who die during 2013. In 2012, the amount was $5.1 million.
The monthly limitation regarding the aggregate fringe benefit exclusion amount for transit passes and transportation in a commuter vehicle is up from $240 in 2012 to $245 in 2013.
For further details on inflation adjustments, visit the IRS’s website.