2013 Deductions and Exclusions:

Foreign Earned Income Exclusion:

• $97,600

Personal exemption:

• $3,900
• AGI phaseout thresholds: $250,000 (single), $300,000 (married filing jointly), $150,000 (married filing separately) and $275,000 (head of household).
• Personal exemption is reduced 2% for each $2,500 ($1,250 for married filing separately) by which AGI exceeds threshold.

Standard deduction:

• Single and married filing separately: $6,100
• Joint filers: $12,200
• Heads of household: $8,950
• Additional standard deduction for 65+ and blind taxpayers:
  • Single taxpayers and Heads of household: $1,500
  • Married filers and surviving spouses: $1,200

Itemized Deductions:

The total amount of itemized deductions is reduced by $0.03 for each dollar of AGI in excess of:

• Single: $250,000
• Heads of household: $275,000
• Married filing jointly: $300,000
• Married filing separately: $150,000

or 80% of the itemized deductions otherwise allowable, whichever is less.

Some Itemized Deductions may be subject to taxation at AMT rates. Whether to itemize or not requires analysis and strategy to obtain the best financial result.

Please contact us for professional assistance specific to your unique situation.

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