On Friday, the IRS issued Rev. Proc. 2013-15, which contains
inflation-adjusted items for 2013, as well as the new income tax rate
tables now in effect as a result of the American Taxpayer Relief Act of
2012, P.L. 112-240 (the Act). In October 2012, when the IRS issued its
usual end-of-the-year inflation
adjustment revenue procedure (Rev. Proc. 2012-41), it noted that many of
the items normally included would have to wait until Congress acted.
This release contains many of those items.
Among the inflation-adjusted amounts that have increased are the personal
exemption, which increased from $3,800 in 2012 to $3,900 for 2013, and
the standard deduction, which for married filing jointly status
increased from $11,900 in 2012 to $12,200 in 2013. In addition, the
adoption credit under Sec. 23 is inflation-adjusted from $12,650 in 2012
to $12,970 in 2013.
The revenue procedure also contains the inflation-adjusted unified credit against the estate tax, which is $5.25 million for 2013.
The AMT exemption amount for 2013 is $80,800
for married taxpayers filing joint returns and $51,900 for single
taxpayers. The American Taxpayer Relief Act set the 2012 exemption
amounts at $78,750 for married taxpayers filing jointly and $50,600 for
single filers and indexed the numbers for inflation, so Congress will no
longer have to pass annual AMT “patches.”
The revenue procedure provides the beginning income levels for the limitation on
certain itemized deductions and the beginning income levels for the
phaseout of personal exemptions, which were reinstated by the Act. It
also includes the 2013 amounts for the child tax credit; the Hope
scholarship, American opportunity, and lifetime learning credits; the
earned income credit; and the phaseout limits for interest paid on
qualified education loans.
One curious item in the revenue procedure is the inclusion of the amount for the qualified
transportation fringe benefit for 2012. The Act retroactively reinstated
parity between the benefits for parking and for transportation in a
commuter highway vehicle or a transit pass for 2012 at $240 a month,
which the IRS notes in the revenue procedure. However, as a practical
matter, taxpayers have received their benefits for 2012, and it is
unclear what the mechanism would be to refund the tax paid on amounts
that would have been excluded from income under the higher $240 a month