Home » News » View News

New 39.6 percent tax bracket for wealthiest people

Font size

Posted: Jan 22, 2014 1:29 AM

Updated: Jan 22, 2014 1:30 AM

WASHINGTON (AP) The tax filing season is getting off to a later start, thanks to last year's government shutdown.

When they begin preparing their returns, higher-income taxpayers will find a new top tax rate, higher Medicare taxes and the phaseout of deductions and exemptions. Legally wed same-sex couples may be subject to the so-called marriage penalty.

All taxpayers, meanwhile, will have a harder time qualifying for medical deductions. For those working at home, there's a simplified formula for figuring the home office deduction.

Many provisions for the 2013 tax year were set early. The alternative minimum tax was patched permanently to prevent more middle-income workers from being drawn in. Similarly, tax rate tables and the standard deduction were adjusted for inflation.

The Internal Revenue Service will begin accepting tax returns Jan. 31.

Topics: US-SPE-Taxes-Overview

KRGV is Social