How to Update Federal Tax Tables

Written by S. Arteta and Fact Checked by The Law Dictionary Staff  

Federal Tax Tables refer to the guides that the IRS provides annually. These guides the taxpayers on the increase, increments, decrease or any adjustments implemented by the government on their taxes. The tables are updated annually through the IRS which provides for a system to disseminate the updates to the taxpayers.

For the year 2013, the IRS has provided the following tax tables as well as the cost-of-living adjustments for the year. These tables shall be used by the taxpayers to prepare their 2013 tax returns in 2014.

For married taxpayers filing jointly:

Taxable Income                                         Tax

$0-$17,850                                                10 percent of the taxable income

$17,851 – $72,500                                  $1,785 plus 15% of the excess over $17,851

$72,501 – $146,400                               $9,982.50 plus 25% of the excess over
$72,500

$14 6,401 – $223,050                            $28,457.50 plus 28% of the excess over $146,400

$223, 051 – $398,350                            $49,919.50 plus plus 33% of the excess over $223,050

$398,351 -$450,000                             $125,846 plus 29.6% of the excess over $450,000

$450,000 +                                                $125,846 plus 39.6% of the excess over $450,000

 

Head of Household

Taxable Income                                         Tax

$0 – $12,750                                               10% of the taxable income

$12,751 – $48,600                                   $1,275 + 15% of the excess over $12,750

$48,601 – $125,450                                 $6,652.50 + 25% of the excess over $48,600

$125,451 – $203,150                               $25,856 + 28% of the excess over $125,450

$203,051 – $398,350                               $47,621 + 33% of the excess over $203,150

$398,351 – $425,000                               $112,037 + 35% of the excess over $398,350

$425,001 +                                                   $ 121,364.50 + 39.6% of the excess over $425,000

 

Individual Taxpayers

Taxable Income                                          Tax

$0 – $8,925                                                   10% of the taxable income

$8,926 – $36,250                                       $892.50 + 15% of the excess over $8,925

$36,251 – $87,850                                     $4,991.25 + 25% of the excess over $36,250

$87,851 – 183,250                                      $17,891.25 + 28% of the excess over $87,850

$183,251 – $398,350                                 $44,603.25 + 33% of the excess over $183,250

$398,350 – $400,000                               $115,586.25 + 35% of the excess over $398,350

$400,001 +                                                    $116,163.75 + 39.6% of the excess over $400,000

There is also a table intended for married taxpayers filing separate returns which could be found on the IRS website. The maximum credit allowable for the year 2013 is $12,970. Child Tax Credit in the amount of $3,000 is allowed under Sec. 24(d)(1)(B)(i) which can be used to determine the amount of refundable credit. The IRS also adjusted the American Opportunity Credit of the “supercharged” Hope Scholarship Credit and limited the same to $2,500.

The other details of the recent and updated tax tables may be found on the IRS website or on IRS publications. Some companies adopted a way to disseminate the updated federal tax tables to their employees through posting in conspicuous places, issuance of memorandum and through articles on the company websites.

 

 

More On This Topic



Comments are closed.