June 27, 2013 exceeds the applicable threshold amount (for 2013, that applicable threshold a Net Investment Income, as defined un- (see chart, below) for the year ($1,250 for amount is $450,000 AGI for married der new Code Section 1411, is taxed married persons filing separately). individuals filing joint returns and sur- starting in 2013 at 3.8 percent, keyed viving spouses, $425,000 for heads of to a modified AGI threshold based on households, $400,000 for single indi- filing status ($250,000 for joint filers; Net Capital Gains/ Net Investment In- viduals, and $225,000 for married in- $125,000 for married, filing separately; come. AGI thresholds are also used in taxing dividuals filing separate returns. (The and $200,000 for all others). investment-type income: “regular” 15 percent capital gains rate is likewise reduced to zero percent for mu Net Capital Gains are taxed at the 20 taxpayers in the 10 percent bracket— Deduction|Credit Thresholds. Thresholds percent maximum rate at levels beyond a benefit that can be used by same-sex are also commonly used to restrict deductions, which income would otherwise be couples where one partner has very credits and other benefits based upon adjusted pushed into the 39.6 percent bracket little income). gross income and filing status: ly 2013 AGI (MAGI) PHASEOUT THRESHOLD START POINTS o Joint Return Single Married Filing Separately Itemized Deductions: $300,000 $250,000 $150,000 g Personal Exemptions: $300,000 $250,000 $150,000 Maximum Net Capital Gains: $450,000 $400,000 $225,000 Net Investment Income Surtax: $250,000 $200,000 $125,000 Additional Medicare Tax: $250,000 $200,000 $125,000 Child Tax Credit: $110,000 $75,000 $55,000 American Opportunity Credit: $160,000 $80,000 $0 Lifetime Learning Credit: $107,000 $53,000 sO IRA Deduction (plan participants): $95,000 $59,000 * Roth IRA Eligibility: $178,000 $112,000 eA *Deduction determined under single status if not living with spouse at anytime during tax year; otherwise parti