IRS Issues Revenue Procedure on Inflation-Adjusted Items

Late last week, the IRS issued Rev. Proc. 2013-15, which contains information on inflation-adjusted items for 2013. When the IRS issued its usual end-of-the-year inflation adjustment revenue procedure back in October, it noted that a majority of the items normally included would depend on how Congress approached the fiscal cliff legislation. Below you will find information on those specified items:

• The personal exemption amount increased from $3,800 in 2012 to $3,900 for 2013.
• The standard deduction for married couples filing jointly increased from $11,900 in 2012 to $12,200 in 2013.
• The adoption credit was adjusted from $12,650 in 2012 to $12,970 in 2013.
• The alternative minimum tax (AMT) exemption amount was set at $78,750 for married taxpayers filing jointly and $50,600 for single filers and indexed for inflation.

Also included in the revenue procedure are the beginning income levels for the limitation on certain itemized deductions and for the phaseout of personal exemptions. The 2013 amounts for the child tax credit; the Hope scholarship, American opportunity, and lifetime learning credits; and the earned income credit are discussed as well. For more information on the revenue procedure, please visit the Journal of Accountancy.