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Tax Resources

 

At Smith-Manes Tax Service, we believe in keeping our clients informed. We hope the following information and resources prove valuable to you. If you have any questions about the information provided on this page, please feel free to call us at 423-532-8030 today to speak with one of our tax professionals. Let us help you make the best decisions  for your finances and your life.

 

Minimum Income Requirements

Filing StatusAgeMinimum Income Requirement

SingleUnder 65$10,000

65 or older$11,500

Head of HouseholdUnder 65$12,850

65 or older$14,350

Married Filing JointlyUnder 65 (both spouses)$20,000

65 or older (one spouse)$21,200

65 or older (both spouses)$22,400

Married Filing SeparatelyAny age$3,900

Qualifying Widow(er) with Dependent ChildrenUnder 65$16,100

65 or older$17,300

  

Standard Deduction Amounts – 2013

Filing StatusStandard Deduction

Single$6,100

Head of Household$8,950

Married Filing Separately$6,100

Married Filing Jointly$12,200

Qualifying Widow(er)$12,200

 

Personal Exemption Amount – 2013

The personal exemption amount for the tax year of 2012 is $3,900.00.

  

Federal Income Tax Brackets – 2013

                                                            Married/Joint
                     Single                & Widow(er)                   Married/Separate                Head of Household

10%              $1 - $8,925                    $1 - $17,850                          $1 - $8,925                                     $1 - $12,750

15%              $8,926 - $36,250         $17,851 - $72,500               $8,926 - $36,250                          $12,751 - $48,600

25%              $36,251 - $87,850       $72,501 - $146,400            $36,251 - $73,200                        $48,601 - $125,450

28%              $87,851 - $183,250     $146,401 - $223,050         $73,201 - $111,525                      $125,451 - $203,150

33%              $183,251 - $398,350   $223,051 - $398,350         $111,526 - $199,175                   $203,151 - $398,350

35%              $398,351 - $400,000   $398,351 - $450,000         $199,176 - $225,000                   $398,351 - $425,000

39.6%  over$400,000                 over$450,000                      over $225,000                                          over $425,000

 

 

 

Home Sale Gain Exclusion 

If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).

• If you can exclude all of the gain, you do not need to report the sale on your tax return.

• If you have gain that cannot be excluded, it is taxable. Report it on Schedule D (Form 1040).

  

Earned Income Tax Credit – 2013

Earned Income and adjusted gross income (AGI) must each be less than:

• • $14,340 with no Qualifying Children ($19,680 if married filing jointly)

  • $37,870 with one Qualifying Child ($43,210 if married filing jointly)

  • $43,038 with two Qualifying Children ($48,378 if married filing jointly)

  • $46,227 with three or more Qualifying Children ($51,567 if married filing jointly)

 

Tax Year 2013 maximum credit:

• • $487 with no Qualifying Children

  • $3,250 with one Qualifying Child

  • $5,372 with two Qualifying Children

  • $6,044 with three or more Qualifying Children

 

Investment income must be $3,200 or less for the year.

 

Overall Limitations on Itemized Deductions

At present, overall limitations on itemized deductions are not in effect.  These limitations have been temporarily repealed for 2010, 2011, and 2012.  Unless new legislation is enacted, these limitations will return for tax year 2013.

 

Penalty Rates 

Failure to File Penalty – This penalty is calculated based on the time elasped between the filing deadline—including extensions—and the date on which you filed.  For each month elapsed, the penalty is 5%.  The maximum penalty that can be assessed is 25%.

 

Failure to Pay Penalty – This penalty is calculated based on how much you owe in taxes.  For each month in which your owed amount is not paid in full, a 0.5% penalty is assessed.  There is no maximum to this penalty.  You will also owe interest on unpaid taxes.  Interest is calculated based on how much you owe, and interest rates can vary every three months.  At present, the IRS interest rate is 4% per year.