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Tax Rates and Reference Guide

2013 tax rates and resources for individuals and businesses.

See 2013 tax rates and details for the following:

Corporations

2013 Income Tax Rates - Federal

Regular Tax

Taxable Income Rate
$ 0 - 50,000 15%
$ 50,001 - 75,000 25%
$ 75,001 - 100,000 34%
$ 100,001 - 335,000 39%
$ 335,001 - 10,000,000 34%
$ 10,000,001 - 15,000,000 35%
$ 15,000,001 - 18,333,333 38%
$ >18,333,334 35%

Capital Gains Tax Rate

Maximum tax rate for asssets held 2012 2013
12 months or less (short term) 35% 39.6%1
More than 12 months (long term) 15% 20%
Some Key Exceptions
Long-term gain on collectibles, such as artwork and antiques 28% 28%
Long-term gain attributable to certain recapture of prior depreciation on real property 25% 25%
Gain on qualified small business stock held more than 5 years 14%2 14%2
Long-term gain that would be taxed at 15% or less based on the taxpayer's ordinary-income rate 0% 0%

1Rate increase over 2012 applies only to those with taxable income exceeding $400,000 (singles), $425,000 (heads of households) or $450,000 (married couples filing jointly).

2Effective rate based on 50% exclusion from 28% rate.


Personal Service Corporations

Taxed at flat rate of 35%


Alternative Minimum Tax (AMT)

Tax Rate AMT brackets
Single Head of Household Married filing jointly or surviving spouse Married filing separately
26% $0 - 179,500 $0 - 179,500 $0 - 179,500 $0 - 89,750
28% Over $179,500 Over $179,500 Over $179,500 Over $89,700
AMT exemption
Single Head of Household Married filing jointly or surviving spouse Married filing separately
Amount $51,900 $51,900 $80,800 $40,400
Phaseout1 $115,400 - 323,000 $115,400 - 323,000 $153,900 - 477,100 $76,950 - 236,600

1 The alternative minimum tax (AMT) income ranges over which the exemption phases out and only a partial exemption is available. The exemption is completely phased out if AMT income exceeds the top of the application range.

2013 Income Tax Rates - Other

Wisconsin Illinois
Corporate Replacement Tax 7.9% 7%
C Corporations N/A 2.5%
Partnerships, S Corporations, Trusts N/A 1.5%

Estate and Gift

Estate and Gift Tax Rates

Base Amount Subject to Tax Tax Before Credits* % on Excess Over Base
$0 $0 18%
$10,000 $1,800 20%
$20,000 $3,800 22%
$40,000 $8,200 24%
$60,000 $13,000 26%
$80,000 $18,200 28%
$100,000 $23,800 30%
$150,000 $38,800 32%
$250,000 $70,800 34%
$500,000 $155,800 37%

The total amount of tax-free transfers a person may make during his or her lifetime is $5,120,000 in addition to annual exclusion gifts.

There is no Wisconsin estate tax for deaths occurring in 2013.

The Illinois exemption equivalent is $4,000,000.

*Tax shown above is before the application of the lifetime unified credit of $1,772,800, which is equivalent to an exemption of $5,120,000 (applies to gifts made and estates of decedents dying during 2012 -the 2013 data was not released at the time of publication).

Annual Gift Tax Exclusion

Gifts per person $14,000
Joint gifts by spouses $28,000
Gifts to non-U.S. citizen spouse $143,000

Fiduciary

2013 Fiduciary Tax Rates - Federal

Base Taxable Income Tax on Base % on Excess Over Base
$0 $0 15%
$2,450 $367.50 25%
$5,700 $1,180 28%
$8,750 $2,034 33%
$11,950 $3,090 39.6%

2013 Fiduciary Tax Rates – Wisconsin

Base Taxable Income Tax on Base % on Excess Over Base
$0 $0 4.60%
$10,750 $495 6.15%
$21,490 $1,155 6.50%
$161,180 $10,235 6.75%
$236,600 $15,326 7.75%

Individuals

2013 Income Tax Rates – Federal

Married Taxpayers Filing Jointly Or Surviving Spouses

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 10%
$17,850 $1,785 15%
$72,500 $9,982.50 25%
$146,400 $28,475.50 28%
$223,050 $49,919.50 33%
$398,350 $107,765.50 35%
Over $450,000 $125,846 39.6%

Single

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 10%
$8,926 $892.50 15%
$36,250 $4,991.25 25%
$87,850 $17,891.25 28%
$183,250 $44,603.25 33%
$398,350 $115,586.25 35%
Over $400,000 $116,163.75 39.6%

Head of Household

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 10%
$12,750 $1,275 15%
$48,600 $6,652.50 25%
$125,450 $25,865 28%
$203,150 $47,621 33%
$398,350 $112,037 35%
Over $425,000 $121,364.50 39.6%

Married Filing Separately

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 10%
$8,926 $892.50 15%
$36,250 $4,991.25 25%
$73,200 $14,228.75 28%
$111,526 $24,959.75 33%
$199,176 $53,884.25 35%
Over $225,000 $62,923 39.6%

Kiddie Tax

Special rules apply for taxation of unearned income greater than $2,000 for a child who is under 18 or a student under age 24 whose earned income is not more than one-half of the child’s support.


Estimated Tax Payments

To avoid possible underpayment penalties, you are generally required to pay through withholding or estimated tax payments the lesser of:

  1. 100% of prior year tax liability, or
  2. 90% of current year tax liability.

In 2013, taxpayers with 2012 Adjusted Gross Income (AGI) $150,000 ($75,000 for married filing separately) must pay the lesser of:

  1. 110% of prior year tax liability, or
  2. 90% of current year tax liability.

2013 estimated tax payments for individuals are due in 2013 by:

  • April 15
  • June 17
  • September 16
  • January 15 (2014)

2013 Income Tax Rates – Wisconsin

Married Filing Jointly

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 4.60%
$14,330 $659 6.15%
$28,650 $1,540 6.50%
$214,910 $13,647 6.75%
$315,460 $20,434 7.75%

Single Or Head of Household

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 4.60%
$10,750 $495 6.15%
$21,490 $1,155 6.50%
$161,180 $10,235 6.75%
$236,600 $15,326 7.75%

Married Filing Separately

Base Taxable Income Tax on Base % of Excess Over Base
$0 $0 4.60%
$7,160 $329 6.15%
$14,330 $770 6.50%
$107,450 $6,823 6.75%
$157,730 $10,217 7.75%

2013 Income Tax Rates - Illinois

All filing statuses 5%


Child Tax Credit

$1,000 credit per qualifying child under age 17 (may be refundable under certain circumstances).

Credit reduced by $50 for every $1,000 (or fraction) of modified Adjusted Gross Income (AGI) over threshold amounts of:

Married filing jointly $110,000
Single $75,000
Head of household $75,000
Married filing separately $55,000

Required Minimum Distribution Table

Required minimum distribution from IRA or qualified plan is the balance in the plan account as of 12/31 of the prior year (i.e., for 2013, 12/31/12) divided by the distribution period for the beneficiary’s age as of the end of 2013.

Age of Employee Distribution Period Age of Employee Distribution Period Age of Employee Distribution Period
70 27.4 85 14.8 100 6.3
71 26.5 86 14.1 101 5.9
72 25.6 87 13.4 102 5.5
73 24.7 88 12.7 103 5.2
74 23.8 89 12.0 104 4.9
75 22.9 90 11.4 105 4.5
76 22.0 91 10.8 106 4.2
77 21.2 92 10.2 107 3.9
78 20.3 93 9.6 108 3.7
79 19.5 94 9.1 109 3.4
80 18.7 95 8.6 110 3.1
81 17.9 96 8.1 111 2.9
82 17.1 97 7.6 112 2.6
83 16.3 98 7.1 113 2.4
84 15.5 99 6.7 114 2.1


    115+ 1.9

2013 Retirement Savings

Individual Contribution Limitation

Born Before 1963 Born After 1962
401(k), 403(b) & SARSEP Deferral Limit $23,000 $17,500
SIMPLE Deferral Limit $14,500 $12,000
457 Deferral Limit* $23,000 $17,500

Compensation for self-employed persons is net self-employment income, less ½ self-employment tax, less certain retirement contributions.

*Not applicable to all 457 plans; see your plan provider.

**Contributions aggregated from all plans (excluding 401(k), SIMPLE or SARSEP deferrals) are not deductible if they exceed 25% of the total compensation of all eligible employees.

***Lesser of contribution or 25% of compensation.

****Lesser of contributor or 100% of compensation.

Miscellaneous

2012 Deductions, Credits and Other

Non Business Energy Property Credit

There is a credit for residential energy efficient property placed in service in 2006 – 2016. This credit is equal to 30% of the cost of the following property: solar energy property, solar water heating property, fuel cells, small wind energy systems and geothermal heat pumps.

 

Self Employed Medical Insurance Premiums

  • Self-employed individuals may subtract above the line 100% of the amount paid during the year for medical insurance.

Standard Mileage Deductions

  • Business: 55¢ per mile
  • Charitable: 14¢ per mile
  • Medical: 23¢ per mile
  • Moving: 23¢ per mile

2012 Social Security Benefits

Maximum Annual Earned Income Limit

Under full retirement age $14,640
Full retirement age No limit

 

If reaching full retirement age in 2013, limit is $3,240/month until the month you reach full retirement age.

 


Taxable Benefits

Social Security received is taxable if Adjusted Gross Income (AGI), plus tax-exempt interest, and one half of Social Security received exceeds the base amounts. The taxable amount is the lesser of the percentage of excess over the base amount, or the percentage of benefit received.

 

50% 85%
Married filing jointly $ 32,001 - 44,000 $ 44,001 +
Single/Head of household $ 25,001 - 34,000 $ 34,001 +
Married filing separately $ 0 $ 0

 

Wisconsin and Illinois do not tax Social Security benefits

 


Educational Options

American Opportunity Credit (Formerly Known As Hope Scholarship Credit)*

The maximum non-refundable credit is $2,500 per student (100% of the first $2,000 and 25% of the next $2,000 of tuition, fees and course materials) for the first four years of post-secondary education. For purposes of the credit, the definition of qualified tuition and related expenses is expanded to include course materials. Up to 40% of the credit may be refundable under certain circumstances.

 

For married taxpayers filing a joint return, the Adjusted Gross Income phase-out range is $160,000-180,000. The credit is not available for married taxpayers filing a separate return. For all other taxpayers, the Adjusted Gross Income phase-out range is $80,000-90,000.

 

Lifetime Learning Credit*

The maximum non-refundable credit is $2,000 per tax return (20% of up to $10,000 qualified education tuition and fees).

 

For married taxpayers filing a joint return, the Adjusted Gross Income phase-out range begins at $107,000. The credit is not available for married taxpayers filing a separate return. For all other taxpayers, the Adjusted Gross Income phase-out range begins at $53,000.

 

Coverdell Education Savings Accounts (Education Ira)

Non-deductible contributions of up to $2,000 per beneficiary per year.

 

Student Loan Interest Deduction

Maximum deduction for 2013 is $2,500 for interest on qualified education loans. The deduction can only be taken during the first 60 months in which interest payments are required.

 

For married taxpayers filing a joint return, the Adjusted Gross Income phase-out range is $60,000-75,000. The deduction is not available for married taxpayers filing a separate return. For all other taxpayers, the Adjusted Gross Income phase-out range is $40,000-55,000.

 

Qualified Tuition Programs/529 Plans/Edvest

Wisconsin allows a subtraction of up to $3,000 per child, spouse, taxpayer, grandchild, great-grandchild, niece or nephew for contributions made to the EdVest College Savings Program. Special rules apply for formerly married parents.

 

Illinois allows a subtraction for contributions made to the following 529 plans: “College Illinois!”, Bright Start College Savings Plan, and Bright Directions College Savings Program. A maximum of $10,000 ($20,000 joint return) is deductible.

 


Per Diem Rates

Continental U.S. (CONUS) Lodging Meals + Incidental Expenses (M&IE) Total
Standard Rate* $77 $46 $123

 

* Higher rates may apply to designated “high cost” areas and travel outside of the continental U.S.

 


Health Savings Accounts (HSAs)

An HSA is a savings account set up for paying qualified medical expenses of the account beneficiary, spouse or dependent.

 

Eligibility

An eligible individual:

 

  • Must be covered under a high deductible health plan (HDHP).
  • May not be covered under any other non-HDHP.
  • Cannot be over 64 and enrolled in Medicare.
  • Cannot be claimed as a dependent.

Contributions

Type of Coverage Under age 55 Age 55 & Older
Self-only $3,250 $4,250
Family $6,450 $7,450

Information current as of 1/29/2013


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