What Will the Tax Rates Be in 2013? 3 Scenarios

| December 20, 2012

what's tax rates in 2013Workers typically know in December what the income tax rates will be for the new year. Not in 2012. The nation has yet to learn if certain tax cuts — both the Bush cuts enacted in 2001 and 2003, as well as stimulus tax cuts passed in 2009 — will expire. According to the Tax Foundation’s projections, multiple scenarios exist for 2013 tax rates. Learn more about three of them, and then use DexKnows listings to find a certified public accountant for more information and further explanation.

Scenario 1

If the marriage penalty relief, new 10 percent bracket and marginal rate reductions enacted in 2001 and 2003 expire, the 2013 tax rates for income would be:

  • 15 percent tax rate — $0 to $36,250 for single filers, $0 to $60,550 for married joint filers and $0 to $48,600 for head of household filers
  • 28 percent tax rate — $36,250 to $87,850 for single filers, $60,550 to $146,400 for married joint filers and $48,600 to $125,450 for head of household filers
  • 31 percent tax rate — $87,850 to $183,250 for single filers, $146,400 to $223,050 for married joint filers and $125,450 to $203,150 for head of household filers
  • 36 percent tax rate — $183,250 to $398,350 for single filers, $223,050 to $398,350 for married joint filers and $203,150 to $398,350 for head of household filers
  • 39.6 percent tax rate — $398,350-plus for single filers, $398,350-plus for married joint filers and $398,350-plus for head of household filers

Scenario 2

If Congress passes H.R. 8, the Job Protection and Recession Prevention Act of 2012, the Bush tax cuts will not expire and the tax brackets would be roughly 2.57 percent higher than 2012’s, according to the Tax Foundation. The 2013 tax rates for income would be:

  • 10 percent tax rate — $0 to $8,950 for single filers, $0 to $17,900 for married joint filers and $0 to $12,750 for head of household filers
  • 15 percent tax rate — $8,950 to $36,250 for single filers, $17,900 to $72,500 for married joint filers and $12,750 to $48,600 for head of household filers
  • 25 percent tax rate — $36,250 to $87,850 for single filers, $72,500 to $146,400 for married joint filers and $48,600 to $125,450 for head of household filers
  • 28 percent tax rate — $87,850 to $183,250 for single filers, $146,400 to $223,050 for married joint filers and $125,450 to $203,150 for head of household filers
  • 33 percent tax rate — $183,250 to $398,350 for single filers, $223,050 to $398,350 for married joint filers and $203,150 to $398,350 for head of household filers
  • 35 percent tax rate — $398,350-plus for single filers, $398,350-plus for married joint filers and $398,350-plus for head of household filers

Scenario 3

Congress passes President Obama’s 2013 budget, which would allow the Bush tax cuts to expire only for upper-income taxpayers. The 2013 tax rates for income would be:

  • 10 percent tax rate — $0 to $8,950 for single filers, $0 to $17,900 for married joint filers and $0 to $12,750 for head of household filers
  • 15 percent tax rate — $8,950 to $36,250 for single filers, $17,900 to $72,500 for married joint filers and $12,750 to $48,600 for head of household filers
  • 25 percent tax rate — $36,250 to $87,850 for single filers, $72,500 to $146,400 for married joint filers and $48,600 to $125,450 for head of household filers
  • 28 percent tax rate — $87,850 to $183,250 for single filers, $146,400 to $223,050 for married joint filers and $125,450 to $203,150 for head of household filers
  • 33 percent tax rate —$183,250 to $203,600 for single filers, $223,050 to $247,000 for married joint filers and $203,150 to $227,300 for head of household filers
  • 36 percent tax rate —$203,600 to $398,350 for single filers, $247,000 to $398,350 for married joint filers and $227,300 to $398,350 for head of household filers
  • 39.6 percent tax rate —$398,350-plus for single filers, $398,350-plus for married joint filers and $398,350-plus for head of household filers

If President Obama and Congress do not come to a resolution by Dec. 31, retroactive actions could take place in the new year. Stay in the know regarding 2013 tax rates by using DexKnows listings to find a certified public accountant. Your accountant also can help you fill out 2012 federal tax forms, which use the existing 2012 tax rates. DexKnows also can connect you with online tax tools if you want to go the DIY route when filling out your 2012 IRS forms.

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Category: Accountants & Tax Preparers, Taxes

About the Author ()

Pamela Mitchell spent more than 15 years at daily newspapers such as the Hartford Courant and Houston Chronicle before becoming a full-time freelancer. She now writes about a variety of topics, from dining and entertainment to pets and travel.