2013 US Income tax returns


What is income tax?

In US the federal, most states and local governments impose tax on income. The income tax is calculated by applying the tax rates, which normally increase as income increases. Income generated by Individuals, companies, nonprofit organization and trusts are directly taxable based on the Tax rated defined by the Federal Government. For US citizen or a resident alien of the US and lives abroad, the worldwide income is taxable. Married couples may calculate income tax as a couple or individually. Individuals and corporations must file income tax returns in each year on their income.


2013 US Federal Income Tax Brackets & Marginal Rates

You are filing your 2013 taxes in 2014 based the income tax brackets define the amount of tax you owe to the government before credits and after-tax adjustments. US federal income tax consists of 6 marginal tax brackets, ranging from a minimum of 10% to a maximum of 35%. US Goverment has done a minimal increase in the tax rate compare to 2012 tax rate, i.e around 3% to 5% increase.

The Federal Income Tax must be paid throughout the year, either through tax witholding by an employer or quarterly tax payments by the taxpayer submit to the IRS on your behalf. If you expect any tax due, you must reconcile annually by filing on or before the 15th day of the 4th month,following the close of your tax year and pay any remaining tax due. To compute the remaining tax due, subtract any payments previously made from the total tax due.

2013 Federal Income Tax Rates

Single Married (Jointly) Married (Separately) Head of Household Marginal Tax Rate
$0+ $0+ $0+ $0+ 10.00%
$8,700+ $17,400+ $8,700+ $12,400+ 15.00%
$35,350+ $70,700+ $35,350+ $47,350+ 25.00%
$85,650+ $142,700+ $71,350+ $122,300+ 28.00%
$178,650+ $217,450+ $108,725+ $198,050+ 33.00%
$388,350+ $388,350+ $194,175+ $388,350+ 35.00%

If you want to compare the 2013 federal income tax rate with 2012 tax then the table is given below

2012 Federal Income Tax Rates

Single Married (Jointly) Married (Separately) Head of Household Marginal Tax Rate
$0+ $0+ $0+ $0+ 10.00%
$8,376+ $16,751+ $8,376+ $11,951+ 15.00%
$34,001+ $68,001+ $34,001+ $45,551+ 25.00%
$82,401+ $137,301+ $68,651+ $117,651+ 28.00%
$171,851+ $209,251+ $104,626+ $190,551+ 33.00%
$373,651+ $373,651+ $186,826+ $373,651+ 35.00%

What is income tax exemption?

There are tax exemption on saving and expenses of both Individuals and corporations. The Tax exemptions includes Interest on Home Mortgage, Contributions to charity, Medical expenses etc.

There might be limitation on the exception of income tax. Capital gains are taxable and capital losses reduce taxable income for an extent of gains. Currently Individuals pay a lower rate of tax on their capital gains and specific corporate dividends.