Those of us who prepare returns are still trying to learn the 2012 items that are adjusted annually for inflation. Still, the 2013 adjustments have been announced. Here are the highlights:
- The standard deduction rises to $6,100 ($12,200 for married couples filing jointly), up from $5,950 ($11,900 for MFJ).
- The personal exemption rises to $3,900, up from $3,800.
- The Alternative Minimum Tax exemption, which is FINALLY indexed for inflation, is $51,900 ($80,800 for MFJ).
- The maximum Earned Income Credit amount is $6,044 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $5,891.
- The estate tax exclusion amount increases to $5,250,000, up from $5,120,000.