2013 Income Tax Deduction Amounts
Deductions are subtracted from your gross income which means that your taxable income will be less. For example, let’s say you made $100,000 in a year. You are filing with Single status so your deduction is $5,700. Let’s also add in 2 dependents at $3,650 each which would bring your total deduction to $9,350. The amount you will then be taxed on is $90,650 instead of the full $100,000, the $9,350 will be yours tax free. Below I’ll show you the deduction amounts, as well as definitions so you’ll know exactly what you qualify for.
|Married – Filing Jointly||$12,200|
|Married – Filing Separate||$6,100|
|Head Of Household||$8,950|
Single Filing Status: If at the end of the year you aren’t married, or you are legally divorced and you don’t fall under another filing status, you will qualify for single filing status.
Married – Filing Jointly: You must be legally married and you and your spouse must agree to file a joint return together.
Married – Filing Separately: You must be legally married, but have decided that you and your spouse will file separate tax returns. Sometimes couples like to be separate if the generally keep their finances separate and only want to be responsible for their own return. It can also be as simple as the taxes being less than if they filed jointly, but that’s usually not the case.
Head Of Household: You may qualify for this if you are unmarried, and paid for more than half of the house costs. There are quite a few restrictions and special circumstances that occur with this designation so we recommend consulting an accountant before filing for this status.