2013 IRS Tax Brackets — Four Important Facts To Know


 I took a quick look at the source material, H.R.8 — American Taxpayer Relief Act of 2012  (BILLS-112hr8eas) and came up with the four most important things you need to know about the 2013 IRS tax brackets.


UPDATE: Here are finalized 2013 Federal Income Tax Rate Brackets for Individuals indexed for inflation


1. Addition of a new tax bracket for ordinary income:

Section 101 (b)(3)(B) creates a new 39.6% tax bracket for those making over $450,000.00, $425,000.00, or $400,000.00 depending on filing status These are not the finalized numbers, as these brackets will be adjusted for inflation.


2. Additional of a new tax bracket for dividends and capital gains

Dividend tax rate will remain at 15% for those whose income is under $250,000 and will be 20% for those whose adjusted gross income is over $250,000.00. This is in addition to the ObamaCare surtax of 2.8%. So, for many Americans dependent on dividends or who happen to sell a property in one year, they will be hit with a huge tax increase from 15% to 22.8%.


3. Change to the AMT tax exemption amounts

Increasing the exemption amounts to $78,750 for those filing joint and  $50,600 for those filing single and separately.


4. Republicans are useless

I say this as a soon to be former Republican. Tax increases will not bring more revenue. Tax increases strangle the economy. Or as the saying goes, four more years of "bad luck."


To juxtapose a great Ronald Wilson Reagan quote,  "I didn't leave the Republican party, the party left me". Is it me or does Dr. Ron Paul look less crazy every day that passes?


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UPDATE 1-7-2013: Preliminary 2013 tax brackets here