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gov Print 1040 pages 1 & 2 for 2013 Print income tax tables for 2013 Chapter 1 page 1-23, 1-6c Skip chapter 2 Chapter 3 individual tax formulas

Federal Income tax brackets (ordinary income): 10% 15% 25% 28% 33% 35% top prior to 2013 39.6% new for 2013 (affects only 1% of taxpayers) [kicks in at $450,000]

Ordinary income salaries and wages, bank interest, royalties

Capital Gain Rates: Short-term gains use ordinary rates (above) (depending on bracket) taxed as ordinary income Long-term gains use 0% (10%, 15% bracket only), 10%, 15%, 20% (top bracket only) taxed as capital gains rate Net capital loss cant deduct more than $3,000/year must carry over to next year

Realized vs. unrealized Unrealized gains are never taxed* Medicare Tax affordable care act 3.8% on income over $250,000 (MFJ), $200,000 (single)

6.2% - Social Security 1.45% - Medicare 7.65% F.I.C.A

Schedule A, B, C, D, E 4562 2106 unreimbursed business expenses 3903 moving expenses

Individual tax formula: (Page 1) Gross Income IRC section 61 (chapter 3) Ex. Dividends (qualified vs. unqualified), gambling income, embezzled funds, partnership income, wages, tips, salaries, rewards, professional fees, _ (for) Adjustments for gross income IRC section 62 = Adjusted Gross Income (AGI) get the AGI as low as possible! (from) _ (Page 2) Greater of standard deduction (or) itemized deduction (Schedule A) _ Personal exemptions ($3,900/exemption) = Taxable income

Gross Tax _ credits = Refund or Balance due

(Schedule A) Itemized deductions are personal expenses that congress allows to deduct

Schedule E Supplemental income (page 1) Income from entities (page 2)

1040 page 1 Business Deductions