IRS Tax Brackets for 2013
The IRS tax brackets for 2013 could look like this:
- five IRS tax brackets instead of six, with the lowest (10%) disappearing
- people in the lowest tax brackets will start paying long term capital gains
- married filing jointly will move into higher IRS tax brackets
Other IRS 2013 changes in the tax system, which apply to all tax brackets are:
- qualifying dividends will be taxed at ordinary income tax rate s (higher)
- the payroll tax rate will go back up to 4% from 2%
- for married filing jointly, you’ll see a lower standard deduction for 2013
- less generous tax credits and deductions
Why Are the 2013 IRS Tax Brackets Different?
These and other tax law changes will take effect if the Bush tax cuts are not extended again by Congress. The original Bush era tax cuts were put into place in 2001 and 2003 and set to expire in 2011. President Obama extended the cuts to the end of 2012. Now it will take Congress to extend them again.
When Will We Know What the 2013 IRS Tax Brackets Will Be?
There is an election in November, and it is not expected that there will be a vote on the 2013 Federal Income Tax Brackets and updates until after the election. If the cuts expire, most people will see an increase in their taxes for 2013.