O'Reilly logo

J.K. Lasser's Your Income Tax 2014: For Preparing Your 2013 Tax Return by J. K. Lasser

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

What's New for 2013

For an update on tax developments and a free download of the e-Supplement to this book, visit us online at www.jklasser.com.

Tax News for 2013

Item— Highlight—
Tax rate brackets and preferential rates for capital gains/qualified dividends

The 10%, 15%, 25%, 28%, 33% and 35% brackets for 2013 ordinary income reflect an inflation adjustment, and there is a new top bracket of 39.6% that applies if taxable income exceeds $400,000 for single taxpayers, $425,000 for heads of households, $450,000 for married persons filing jointly and qualifying widows/widowers, and $225,000 for married taxpayers filing separate returns (1.2).

Workers with wages and other compensation in excess of $250,000 (joint filers), $125,000 (married filing separately) or $200,000 (all others) are also subject to the new 0.9% additional Medicare tax; see below.

Qualified dividends (4.2) and long-term capital gains (5.3) may escape tax entirely under the 0% rate, or be subject to capital gain rates of 15% or 20% depending on filing status, taxable income, and how much of the taxable income consists of qualified dividends and eligible long-term gains. The new 20% capital gain rate has the same taxable income thresholds as the 39.6% ordinary income rate shown above, that is, either $450,000, $425,000, $400,000, or $225,000 depending on filing status. The 0%, 15%, and 20% rates do not apply to long-term gains subject to the 28% rate (collectibles and taxed portion of small business stock) ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required