John R. Bullis: Here are IRS tax laws for 2013, by the numbers | NevadaAppeal.com
YOUR AD HERE »

John R. Bullis: Here are IRS tax laws for 2013, by the numbers

John R. Bullis

The tax laws have many important numbers. Here are just a few:

70½: The age needed to make an IRA distribution directly to church or charity that meets or exceeds the required minimum distribution (RMD). There is no addition to taxable income and no charitable deduction. However, some folks are not doing itemized deductions (no home mortgage interest, etc.), and this gives them reduced taxable income (maybe fewer of the Social Security benefits are taxable).

3.8 percent: The additional tax on investment income for single taxpayers with adjusted gross income of $200,000 or more ($250,000 for couples).

0.9 percent: The additional payroll tax for Medicare if the earned income (wages, net profits from sole-owner business) exceed $200,000 for single taxpayers ($250,000 for couples).

20 percent: The tax rate on qualified dividends and long-term capital gains for single taxpayers with adjusted gross income of more than $400,000 ($450,000 for couples).

The rate is still 15 percent for lower-gross-income taxpayers. It can be 0 percent for those with taxable income that is less than $36,250 for single taxpayers ($72,500 for couples).

56.5 cents: The standard mileage rate for business driving. It is still 14 cents for charity work and 24 cents for moving and medical driving.

$17,500: The maximum amount to contribute to 401(K) and 403(b) retirement plans.

$5,500: The maximum amount to contribute to an IRA in 2013. Those who will be 50 years old by Dec. 31 can contribute an additional $1,000. Special rules apply for those who are covered by a retirement plan where they work.

$6,100: The standard deduction (instead of itemized deductions) for single taxpayers ($12,200 for couples). There’s an additional $1,500 for single taxpayers 65 or older ($1,200 for each person for couples).

$5,250,000: The amount each person can leave behind after death without a death tax in 2013. There is a 40 percent tax on any excess.

$14,000: The amount of total gifts to each person in 2013 that is not subject to the gift tax.

There are many more key numbers. Maybe another article can cover some of them.

Did you hear? “It’s always better the next morning” — Herm Edwards.

John R. Bullis is a certified public accountant, personal financial specialist and certified senior adviser who has served Carson City for 45 years. He is founder emeritus of Bullis and Company CPAs.