2013 Individual Federal Income Tax Return Changes

Standard mileage rates. The 2013 rate for business use of your car is increased to 56½ cents a mile. The 2013 rate for use of your car to get medical care is increased to 24 cents a mile. The 2013 rate for use of your car to move is increased to 24 cents a mile.

Change in tax rates. The highest tax rate is 39.6%.

Net Investment Income Tax. Beginning in 2013, you may be subject to Net Investment Income Tax (NIIT). The NIIT is 3.8% of the smaller of (a) your net investment income or (b) the excess of your modified adjusted gross income over:

  • $125,000 if married filing separately,
  • $250,000 if married filing jointly or qualifying widow(er), or
  • $200,000 if any other filing status.

Tax rate on net capital gain and qualified dividends. The maximum tax rate of 15% on net capital gain and qualified dividends has increased to 20% for some taxpayers.

Medical and dental expenses. You can deduct only the part of your medical and dental expenses that is more than 10% of your adjusted gross income (7.5% if either you or your spouse is age 65 or older).

Personal exemption amount increased for certain taxpayers. Your personal exemption is increased to $3,900. But the amount is reduced if your adjusted gross income is more than:

  • $150,000 if married filing separately,
  • $250,000 if single,
  • $275,000 if head of household, or
  • $300,000 if any other filing status.

Limit on itemized deductions. You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than:

  • $150,000 if married filing separately,
  • $250,000 if single,
  • $275,000 if head of household, or
  • $300,000 if any other filing status.

Same-sex marriages. If you have a same-sex spouse whom you legally married in a state (or foreign country) that recognizes same-sex marriage, you and your spouse generally must use the married filing jointly or married filing separately filing status on your 2013 return, even if you and your spouse now live in a state (or foreign country) that does not recognize same-sex marriage.

Health flexible spending arrangements (FSAs). You cannot have more than $2,500 in salary reduction contributions made to a health FSA for plan years beginning after 2012.

Expiring credits. The plug-in electric vehicle credit and the refundable part of the credit for prior year minimum tax have expired. You cannot claim either one on your 2013 return.

Pnzi-type investment schemes. There are new rules for how to claim a theft loss deduction on Form 4684 due to a Ponzi-type investment scheme.

Home office deduction simplified method. If you can take a home office deduction, you may be able to use a simplified method to figure it. See Publication 587.

Additional Medicare Tax. Beginning in 2013, a 0.9% Additional Medicare Tax applies to Medicare wages, railroad retirement (RRTA) compensation, and self-employment income that are more than:

  • $125,000 if married filing separately,
  • $250,000 if married filing jointly, or
  • $200,000 for any other filing status.

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2013 Federal Individual Tax Return Forms, Instructions and News

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Form 1040, U.S. Individual Income Tax Return

Annual income tax return filed by citizens or residents of the United States.

Instructions for Form 1040

Forms and Schedules for Form 1040

2013 news
Change in tax rates.
The highest tax rate for 2013 is 39.6%.
Tax rate on net capital gain and quali­fied dividends.
The maximum tax rate
of 15% on net capital gain and qualified
dividends has increased to 20% for some
taxpayers. The Qualified Dividends and
Capital Gain Tax Worksheet in the
line 44 instructions reflects this new,
higher rate.
Additional Medicare Tax.
Beginningin 2013, a 0.9% Additional Medicare
Tax applies to Medicare wages, railroad
retirement (RRTA) compensation, and
self-employment income that are more
than:
$125,000 if married filing separately,
$250,000 if married filing jointly,
or
$200,000 if single, head of household, or qualifying widow(er).

 

Net Investment Income Tax.
Beginning in 2013, you may be subject to Net
Investment Income Tax (NIIT). The
NIIT is 3.8% of the smaller of (a) your
net investment income or (b) the excess
of your modified adjusted gross income
over:
$125,000 if married filing separately,
$250,000 if married filing jointly or qualifying widow(er), or
$200,000 if single or head ofhousehold.

 

Filing status for same­sex marriedcouples.
If you have a same-sex spouse
whom you legally married in a state (or
foreign country) that recognizes
same-sex marriage, you and your spouse
generally must use the married filing
jointly or married filing separately filing
status on your 2013 return, even if you
and your spouse now live in a state (or
foreign country) that does not recognize
same-sex marriage.
Medical and dental expenses.
You candeduct only the part of your medical and
dental expenses that is more than 10%
of your adjusted gross income (7.5% if
either you or your spouse was born be-
fore January 2, 1949).
Personal exemption amount increased
for certain taxpayers.
Your personalexemption is increased to $3,900. But
the amount is reduced if your adjusted
gross income is more than:
$150,000 if married filing separately,
$250,000 if single,
$275,000 if head of household, or
$300,000 if married filing jointly
or qualifying widow(er).
Limit on itemized deductions.
Youmay not be able to deduct all of your
itemized deductions if your adjusted
gross income is more than:
$150,000 if married filing separately,
$250,000 if single,
$275,000 if head of household, or
$300,000 if married filing jointly
or qualifying widow(er).

 

Credit for prior year minimum tax.
The credit for prior year minimum tax is
no longer partly refundable.
Standard mileage rates.
The 2013 ratefor business use of your vehicle is in-
creased to 56 cents a mile. The 2013rate for use of your vehicle to get medical care or to move is increased to 24cents a mile.
Identity Protection Personal Identifi­
cation Number (IP PIN).
If you are filing electronically and both you and

your spouse received an IP PIN.