2013 tax rates/brackets

[grasshopper]

For all us kids pushing the tax bracket limits.

http://www.irs.gov/pub/irs-drop/rp-13-15.pdf

 

[Marc]

Thanks for posting this! For 2013, looks like maximum AGI for a couple taking the standard deduction and wishing to remain in 15% bracket is $92,500 (72,500 +12,200 + 7800). A worthwhile goal to aim for in order to stay on 0% tax bracket for LTCG and dividends.

Marc

 

[Mulligan]

This is something everyone should evaluate. With the SS payroll tax reverting back to its original rate this year, My part time job will earn me about 30 cents on the dollar when figuring in most of the earned money is in 28% tax bracket, plus all other taxes, transportation cost, and loss of state pension tax credit. So I am done for good here in a few months after I finish up my obligation.

 

[audreyh1]

For all us kids pushing the tax bracket limits.

http://www.irs.gov/pub/irs-drop/rp-13-15.pdf

Thanks very much!

Wow, for AMT, not only is the exemption amount indexed to inflation, but the other numbers too! [The "excess" taxable income for the 28% rate, and the AMT exemptions phaseout. Those two numbers had been fixed for decades at $175K and $150K respectively.] That's nice!

 

[ronocnikral]

And don't forget the impact on Divs/LTCG.

20% for those in the highest tax bracket plus a 3.8% tax for "higher" compensated individuals/couples thanks to the ACA.

 

[rbmrtn]

This is something everyone should evaluate. With the SS payroll tax reverting back to its original rate this year, My part time job will earn me about 30 cents on the dollar when figuring in most of the earned money is in 28% tax bracket, plus all other taxes, transportation cost, and loss of state pension tax credit. So I am done for good here in a few months after I finish up my obligation.

They really don't give much incentive for singles to w*rk do they.

 

[GrayHare]

Avoiding ordinary income seems the way to go. I foresee more people disclaiming inherited IRAs, or not withdrawing from them despite the 50% penalty.

 

[vxp036000]

I always thought it was a little strange that most so-called developed countries disenfranchise successful people, those with "high" income.

They really don't give much incentive for singles to w*rk do they.

 

[Alan]

I always thought it was a little strange that most so-called developed countries disenfranchise successful people, those with "high" income.

What in the tax laws removes the right to vote from high income folks?

 

[vxp036000]

High income folks are by definition a minority and will always be plundered by the majority. One of the many flaws with democracy. Maybe when enough of us with substantial income move to more tax friendly countries and the political / economic environment in the USA plummits enough you'll understand.

 

[Alan]

High income folks are by definition a minority and will always be plundered by the majority. One of the many flaws with democracy. Maybe when enough of us with substantial income move to more tax friendly countries and the political / economic environment in the USA plummits enough you'll understand.

I understand what the word disenfranchise means, which is what you say is happening. Try looking it up.

 

[vxp036000]

You're clearly using a different definition. Disenfranchise also means marginalized.Which is quite accurate; money that I lawfully earned is forcibly taken from me, much more so than for an average income person.

I understand what the word disenfranchise means, which is what you say is happening. Try looking it up.

 

[Gumby]

Disenfranchise also means marginalized.

Then why didn't you say "marginalized" to avoid confusion? It is also difficult for me to believe that someone who can't spell "plummet" is high income.

 

[REWahoo]

I always thought it was a little strange that most so-called developed countries disenfranchise successful people, those with "high" income.

High income folks are by definition a minority and will always be plundered by the majority. One of the many flaws with democracy. Maybe when enough of us with substantial income move to more tax friendly countries and the political / economic environment in the USA plummits enough you'll understand.

You're clearly using a different definition. Disenfranchise also means marginalized.Which is quite accurate; money that I lawfully earned is forcibly taken from me, much more so than for an average income person.

This sounds like the beginning of a political diatribe - something this forum prohibits. Rather than continue into that minefield you might want to stick to trying to convince a bunch of millionaires why your method of investing is better than theirs.

 

[vxp036000]

Quite frankly, I don't care whose investment strategy is better. Clearly you do

This sounds like the beginning of a political diatribe - something this forum prohibits. Rather than continue into that minefield you might want to stick to trying to convince a bunch of millionaires why your method of investing is better than theirs.

 

[REWahoo]

Quite frankly, I don't care whose investment strategy is better.

Then why are you espousing your investment strategy so adamantly?

 

[vxp036000]

I clearly state that it works for me and also advised that it probably wouldn't work for most other folks. How much more clear can I be? What I see a bunch of folks getting all up in arms about how a few folks have an alternative way of investing. Not to mention ridiculed, and personal attacks.

Then why are you espousing your investment strategy so adamantly?

 

[vxp036000]

Showing your true colors now

Rather than continue into that minefield you might want to stick to trying to convince a bunch of millionaires why your method of investing is better than theirs.

 

[brewer12345]

I clearly state that it works for me and also advised that it probably wouldn't work for most other folks. How much more clear can I be? What I see a bunch of folks getting all up in arms about how a few folks have an alternative way of investing. Not to mention ridiculed, and personal attacks.

Speaking as someone who plans on bailing from my day job in the next few years and living an extremely tax-efficient life, I am quite happy that there are people like yourself who generate oodles of taxable income and carry the weight of gubmint expenditures. I am tired of doing so and am happy to cede that to you and your compatriots.

 

[brewer12345]

Showing your true colors now

Word to the wise: generally speaking, comments like this appear to be frowned upon by the moderators here. Play nice in the sandbox, or spend time in the penalty box.

 

[vxp036000]

I apologize. I don't take too kindly to perceived hostility.

Word to the wise: generally speaking, comments like this appear to be frowned upon by the moderators here. Play nice in the sandbox, or spend time in the penalty box.

 

[Hiredgun]

I just received my Bloomberg subscription. There is an article on the new 2013 Taxes. Won't apply to everyone, but here are their estimates:

Individual making $70,000 will see a tax increase of $1,380.

Individual making $300,000 will see a tax increase of $5,975.

Individual making $875,000 will see a tax increase of $41,461.

It's the January 14, 2013 issue.

 

[audreyh1]

I just received my Bloomberg subscription. There is an article on the new 2013 Taxes. Won't apply to everyone, but here are their estimates:

Individual making $70,000 will see a tax increase of $1,380.

Individual making $300,000 will see a tax increase of $5,975.

Individual making $875,000 will see a tax increase of $41,461.

It's the January 14, 2013 issue.

I don't believe an individual making $70,000 will see an income tax increase. His income taxes will more likely drop slightly due to brackets, exemptions, and standard deductions being adjusted up for inflation.

If the individual is employed, his social security withholding will go up 2% of his salary, as it reverts back to normal SS rates after the strange 2 yr SS rate holiday. An individual not subject to FICA will not see this.

 

[FIRE'd@51]

Just to clarify - my understanding is that, if all one's taxable income (married filing jointly) is LTCG and qualified dividends, the tax would be 0% on the first 72.5K and 15% on the amount over 72.5 up to 450K, and this income would still be taxed at these same rates under the AMT. Is this correct?

 

[RunningBum]

This is something everyone should evaluate. With the SS payroll tax reverting back to its original rate this year, My part time job will earn me about 30 cents on the dollar when figuring in most of the earned money is in 28% tax bracket, plus all other taxes, transportation cost, and loss of state pension tax credit. So I am done for good here in a few months after I finish up my obligation.

Not my business, but I'm wondering about those numbers and trying to put it in perspective.

The 28% bracket starts at $87K, so if most of your earned money is in the 28% bracket, you must be making twice that. Pretty sweet for a part time gig!

SS stops being taxed around $113K, so the expiration of the SS payroll tax break is going to cost you less than $2300. Is that really a deal breaker at your income level, or just the push out the door you are looking for? The latter is certainly fine, but let's call it what it is.

Even ignoring when SS tax stops and that some of your income is taxed at less than 28%, 28% fed+7.65% SSA + 6% state is just under \42%. I don't know what these other taxes are and what the pension tax credit loss amounts to, but it sounds like your transportation costs must be enormous! Just saying it doesn't seem to add up. If you are talking about property taxes, that has nothing to do with income.

Are you maybe counting 401K and ESPP deductions in that 70% not taken home? You may not be able to spend that money on groceries today, but eventually you will be able to, so that's not really right to take those amounts away from what you call earned money.

If you really didn't want to get into this, I can delete this. It wasn't really to pick on you, but when I saw a follow up comment that there's not much incentive for single people to work, I felt like it was overblown. It's a 2% increase, and really less than that since there's a cap, and it just gets you back to where you were before the decrease.