OFFICE OF THE ATTORNEY GENERAL 2013 TAX CHARTS

Transcription

1 OFFICE OF THE ATTORNEY GENERAL 2013 TAX CHARTS Pursuant to of the Texas Family Code, the Office of the Attorney General of Texas, as the Title IV-D agency, has promulgated the following tax charts to assist courts in establishing the amount of a child support order. These tax charts are applicable to employed and self-employed persons in computing net monthly income. INSTRUCTIONS FOR USE To use these tables, first compute the obligor s annual gross income. Then recompute to determine the obligor s average monthly gross income. These tables provide a method for calculating monthly net income for child support purposes, subtracting from monthly gross income the social security taxes and the federal income tax withholding for a single person claiming one personal exemption and the standard deduction. Thereafter, in many cases the guidelines call for a number of additional steps to complete the necessary calculations. For example, provide for appropriate additions to income as that term is defined for federal income tax purposes, and for certain subtractions from monthly net income, in order to arrive at the net resources of the obligor available for child support purposes. If necessary, one may compute an obligee s net resources using similar steps. Note regarding Texas Family Code section : Texas Family Code section provides The guidelines for the support of a child in this section are specifically designed to apply to situations in which the obligor's monthly net resources are not greater than $7,500 or the adjusted amount determined under Subsection (a-1), whichever is greater. On September 1, 2013 the $7,500 amount will be adjusted as required by Texas Family Code section Before September 1, 2013 the Office of the Attorney General shall publish the adjusted amount in the Texas Register. These charts will be revised and republished with a September 1, 2013 effective date showing the point where Monthly Gross Wages (Employed Persons) or Monthly Net Earnings From Self-Employment (Self Employed Persons) would result in the adjusted amount of net resources.

2 Old-Age, Survivors and Disability Insurance Taxes (6.2%)* EMPLOYED PERSONS 2013 TAX CHART Social Security Taxes Hospital (Medicare) Insurance Taxes (1.45%)*,** Monthly Gross Wages Federal Income Taxes*** Net Monthly Income $ $6.20 $1.45 $0.00 $92.35 $ $12.40 $2.90 $0.00 $ $ $18.60 $4.35 $0.00 $ $ $24.80 $5.80 $0.00 $ $ $31.00 $7.25 $0.00 $ $ $37.20 $8.70 $0.00 $ $ $43.40 $10.15 $0.00 $ $ $49.60 $11.60 $0.00 $ $ $55.80 $13.05 $6.67 $ $1, $62.00 $14.50 $16.67 $ $1, $68.20 $15.95 $26.67 $ $1, $74.40 $17.40 $36.67 $1, $1,256.67**** $77.91 $18.22 $42.33 $1, $1, $80.60 $18.85 $46.67 $1, $1, $86.80 $20.30 $56.67 $1, $1, $93.00 $21.75 $66.67 $1, $1, $99.20 $23.20 $77.81 $1, $1, $ $24.65 $92.81 $1, $1, $ $26.10 $ $1, $1, $ $27.55 $ $1, $2, $ $29.00 $ $1, $2, $ $30.45 $ $1, $2, $ $31.90 $ $1, $2, $ $33.35 $ $1, $2, $ $34.80 $ $2, $2, $ $36.25 $ $2, $2, $ $37.70 $ $2, $2, $ $39.15 $ $2, $2, $ $40.60 $ $2, $2, $ $42.05 $ $2, $3, $ $43.50 $ $2, $3, $ $44.95 $ $2, $3, $ $46.40 $ $2, $3, $ $47.85 $ $2, $3, $ $49.30 $ $2, $3, $ $50.75 $ $2, $3, $ $52.20 $ $2, $3, $ $53.65 $ $3, $3, $ $55.10 $ $3, $3, $ $56.55 $ $3, $4, $ $58.00 $ $3, $4, $ $61.63 $ $3, $4, $ $65.25 $ $3, $4, $ $68.88 $ $3, $5, $ $72.50 $ $3, $5, $ $76.13 $ $4, $5, $ $79.75 $ $4, $5, $ $83.38 $ $4, $6, $ $87.00 $ $4, $6, $ $90.63 $1, $4, $6, $ $94.25 $1, $4, $6, $ $97.88 $1, $5, $7, $ $ $1, $5, $7, $ $ $1, $5, $8, $ $ $1, $5, $8, $ $ $1, $6, $9, $ $ $1, $6, $9, $587.45***** $ $1, $6, $10, $ $ $2, $7, $10,340.50****** $ $ $2, $7, $10, $ $ $2, $7, $11, $ $ $2, $7, $11, $ $ $2, $8, $12, $ $ $2, $8, $12, $ $ $2, $9, $13, $ $ $2, $9, $13, $ $ $2, $9, $14, $ $ $3, $10, $14, $ $ $3, $10, $15, $ $ $3, $10,787.28

3 Footnotes to Employed Persons 2013 Tax Chart: * An employed person not subject to the Old-Age, Survivors and Disability Insurance/Hospital (Medicare) Insurance taxes will be allowed the reductions reflected in these columns, unless it is shown that such person has no similar contributory plan such as teacher retirement, federal railroad retirement, federal civil service retirement, etc. ** When income exceeds $200, per year there is an additional Medicare Tax of 0.9%. The additional Medicare Tax does not apply to any values shown on this chart because the highest gross income included is $15, per month ($180, per year). *** These amounts represent one-twelfth (1/12) of the annual federal income tax calculated for a single taxpayer claiming one personal exemption ($3,900.00, subject to reduction in certain cases, as described below in this footnote) and taking the standard deduction ($6,100.00). For a single taxpayer with an adjusted gross income in excess of $250,000.00, the deduction for the personal exemption is reduced by two percent (2%) for each $2, or fraction thereof by which adjusted gross income exceeds $250, The reduction is completed (i.e., the deduction for the personal exemption is eliminated) for adjusted gross income in excess of 372, In no case is the deduction for the personal exemption reduced by more than 100%. The phase out of the Personal Exemption does not apply to any values shown on this chart because the highest income included is $15, per month ($180, per year). **** The amount represents one-twelfth (1/12) of the gross income of an individual earning the federal minimum wage ($7.25 per hour) for a 40-hour week for a full year. $7.25 per hour x 40 hours per week x 52 weeks per year equals $15, per year. One-twelfth (1/12) of $15, equals $1, ***** For annual gross wages above $113,700.00, this amount represents a monthly average of the Old-Age, Survivors and Disability Insurance tax based on the 2013 maximum Old- Age, Survivors and Disability Insurance tax of $7, per person (6.2% of the first $113, of annual gross wages equals $7,049.40). One-twelfth (1/12) of $7, equals $ ****** This amount represents the point where the monthly gross wages of an employed individual would result in $7, of net resources. Texas Family Code section provides The guidelines for the support of a child in this section are specifically designed to apply to situations in which the obligor's monthly net resources are not greater than $7,500 or the adjusted amount determined under Subsection (a-1), whichever is greater. On September 1, 2013 this amount will be adjusted as required by Texas Family Code section Before September 1, 2013 the Office of the Attorney General shall publish the adjusted amount in the Texas Register. * * * * * * * * * * * * * * * * * * * * * References Relating to Employed Persons 2013 Tax Chart: 1. Old-Age, Survivors and Disability Insurance Tax Contribution Base

4 (1) Social Security Administration s notice dated October 23, 2012 appearing in 77 Fed. Reg (October 30, 2012) (2) Section 3121 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 3121) (3) Section 230 of the Social Security Act, as amended (42 U.S.C. 430). Tax Rate (1) Section 3101 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 3101) 2. Hospital (Medicare) Insurance Tax Contribution Base (1) Section 3121 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 3121) (2) Omnibus Budget Reconciliation Act of 1993, Pub. L. No , 13207, 107 Stat. 312, (1993) Tax Rate 3. Federal Income Tax (1) Section 3101 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 3101) Tax Rate Schedule for 2013 for Single Taxpayers (1) Revenue Procedure , Section 2.01, Table 3 which appears in Internal Revenue Bulletin , dated January 28, 2013 (2) Section 1(c), (f) and (i) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1(c), 1(f), 1(i)) Standard Deduction (1) Revenue Procedure , Section 2.07(1), which appears in Internal Revenue Bulletin , dated January 28, 2013 (2) Section 63(c) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 63(c)) (c) Personal Exemption

5 (1) Revenue Procedure , Section 2.11, which appears in Internal Revenue Bulletin , dated January 28, 2013 (2) Section 151(d) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 151(d))

6 Monthly Net Earnings From Self-Employment* Old-Age, Survivors and Disability Insurance Taxes (12.4%)** Social Security Taxes SELF-EMPLOYED PERSONS 2013 TAX CHART Hospital (Medicare) Insurance Taxes (2.9%)**, *** Federal Income Taxes**** Net Monthly Income $ $11.45 $2.68 $0.00 $85.87 $ $22.90 $5.36 $0.00 $ $ $34.35 $8.03 $0.00 $ $ $45.81 $10.71 $0.00 $ $ $57.26 $13.39 $0.00 $ $ $68.71 $16.07 $0.00 $ $ $80.16 $18.75 $0.00 $ $ $91.61 $21.43 $0.00 $ $ $ $24.10 $0.31 $ $1, $ $26.78 $9.60 $ $1, $ $29.46 $18.90 $ $1, $ $32.14 $28.19 $1, $1, $ $34.82 $37.48 $1, $1, $ $37.49 $46.78 $1, $1, $ $40.17 $56.07 $1, $1, $ $42.85 $65.36 $1, $1, $ $45.53 $74.80 $1, $1, $ $48.21 $88.74 $1, $1, $ $50.88 $ $1, $2, $ $53.56 $ $1, $2, $ $56.24 $ $1, $2, $ $58.92 $ $1, $2, $ $61.60 $ $1, $2, $ $64.28 $ $1, $2, $ $66.95 $ $1, $2, $ $69.63 $ $2, $2, $ $72.31 $ $2, $2, $ $74.99 $ $2, $2, $ $77.67 $ $2, $3, $ $80.34 $ $2, $3, $ $83.02 $ $2, $3, $ $85.70 $ $2, $3, $ $88.38 $ $2, $3, $ $91.06 $ $2, $3, $ $93.74 $ $2, $3, $ $96.41 $ $2, $3, $ $99.09 $ $2, $3, $ $ $ $2, $3, $ $ $ $2, $4, $ $ $ $3, $4, $ $ $ $3, $4, $ $ $ $3, $4, $ $ $ $3, $5, $ $ $ $3, $5, $ $ $ $3, $5, $ $ $ $3, $5, $ $ $ $4, $6, $ $ $ $4, $6, $ $ $ $4, $6, $ $ $ $4, $6, $ $ $1, $4, $7, $ $ $1, $4, $7, $ $ $1, $5, $8, $ $ $1, $5, $8, $ $ $1, $5, $9, $1, $ $1, $6, $9, $1, $ $1, $6, $10, $1, $ $1, $6, $10, $1,174.90***** $ $1, $7, $11, $1, $ $2, $7, $11,073.95****** $1, $ $2, $7, $11, $1, $ $2, $7, $12, $1, $ $2, $8, $12, $1, $ $2, $8, $13, $1, $ $2, $8, $13, $1, $ $2, $9, $14, $1, $ $2, $9, $14, $1, $ $3, $9, $15, $1, $ $3, $10,236.34

7 Footnotes to Self-Employed Persons 2013 Tax Chart: * Determined without regard to Section 1402(12) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1402(12)) (the Code ). ** In calculating each of the Old-Age, Survivors and Disability Insurance tax and the Hospital (Medicare) Insurance tax, net earnings from self-employment are reduced by the deduction under Section 1402(12) of the Code. The deduction under Section 1402(12) of the Code is equal to net earnings from self-employment (determined without regard to Section 1402(12) of the Code) multiplied by one-half (1/2) of the sum of the Old-Age, Survivors and Disability Insurance tax rate (12.4%) and the Hospital (Medicare) Insurance tax rate (2.9%). The sum of these rates is 15.3% (12.4% + 2.9% = 15.3%). One-half (1/2) of the combined rate is 7.65% (15.3% x 1/2 = 7.65%). The deduction can be computed by multiplying the net earnings from self-employment (determined without regard to Section 1402(12) of the Code) by 92.35%. This gives the same deduction as multiplying the net earnings from self-employment (determined without regard to Section 1402(12) of the Code) by 7.65% and then subtracting the result. For example, the Social Security taxes imposed on monthly net earnings from selfemployment (determined without regard to Section 1402(12) of the Code) of $2, are calculated as follows: (i) Old-Age, Survivors and Disability Insurance Taxes: $2, x 92.35% x 12.4% = $ (ii) Hospital (Medicare) Insurance Taxes: $2, x 92.35% x 2.9% = $66.95 *** When income exceeds $200, per year there is an additional Medicare Tax of 0.9%. The additional Medicare Tax does not apply to any values shown on this chart because the highest gross income included is $15, per month ($180, per year). **** These amounts represent one-twelfth (1/12) of the annual federal income tax calculated for a single taxpayer claiming one personal exemption ($3,900.00, subject to reduction in certain cases, as described below in this footnote) and taking the standard deduction ($6,100.00). In calculating the annual federal income tax, gross income is reduced by the deduction under Section 164(f) of the Code. For example, monthly net earnings from selfemployment of $8, times 12 months equals $102, The Old-Age, Survivors and Disability Insurance taxes imposed by Section 1401 of the Code for the taxable year equal $9, ($102, x.9235 x 12.4% = $11,680.43). The Hospital (Medicare) Insurance taxes imposed by Section 1401 of the Code for the taxable year equal $2, ($102, x.9235 x 2.9% = $2,731.71). The deduction under Section 164(f) of the Code for 2013 is equal to $7, (($11, x 0.5) + ($2, x 0.5) = $7,206.08). For a single taxpayer with an adjusted gross income in excess of $250,000.00, the deduction for the personal exemption is reduced by two percent (2%) for each $2, or fraction thereof by which adjusted gross income exceeds $250, The reduction is completed (i.e., the deduction for the personal exemption is eliminated) for adjusted

8 gross income in excess of $372, In no case is the deduction for the personal exemption reduced by more than 100%. The phase out of the Personal Exemption does not apply to any values shown on this chart because the highest income included is $15, per month ($180, per year). ***** For annual net earnings from self-employment (determined with regard to Section 1402(12) of the Code) above $113,700.00, this amount represents a monthly average of the Old-Age, Survivors and Disability Insurance tax based on the 2013 maximum Old- Age, Survivors and Disability Insurance tax of $14, per person (12.4% of the first $113, of net earnings from self-employment (determined with regard to Section 1402(12) of the Code) equals $14,098.80). One-twelfth (1/12) of $14, equals $1, ****** This amount represents the point where the monthly net earnings from self-employment of a self-employed individual would result in $7, of net resources. Texas Family Code section provides The guidelines for the support of a child in this section are specifically designed to apply to situations in which the obligor's monthly net resources are not greater than $7,500 or the adjusted amount determined under Subsection (a-1), whichever is greater. On September 1, 2013 this amount will be adjusted as required by Texas Family Code section Before September 1, 2013 the Office of the Attorney General shall publish the adjusted amount in the Texas Register. * * * * * * * * * * * * * * * * * * * * * References Relating to Self-Employed Persons 2013 Tax Chart: 1. Old-Age, Survivors and Disability Insurance Tax Contribution Base (1) Social Security Administration s notice dated October 23, 2012 appearing in 77 Fed. Reg (October 30, 2012) (2) Section 1402 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1402) (3) Section 230 of the Social Security Act, as amended (42 U.S.C. 430) Tax Rate (1) Section 1401 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1401) (c) Deduction Under Section 1402(12) (1) Section 1402(12) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1402(12)) 2. Hospital (Medicare) Insurance Tax Contribution Base

9 (1) Section 1402 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1402) (2) Omnibus Budget Reconciliation Act of 1993, Pub. L. No , 13207, 107 Stat. 312, (1993) Tax Rate (1) (1) Section 1401 of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1401) (c) Deduction Under Section 1402(12) 3. Federal Income Tax (1) Section 1402(12) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1402(12)) Tax Rate Schedule for 2013 for Single Taxpayers (1) Revenue Procedure , Section 2.01, Table 3 which appears in Internal Revenue Bulletin , dated January 28, 2013 (2) Section 1(c), (f) and (i) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 1(c), 1(f), 1(i)) Standard Deduction (1) Revenue Procedure , Section 2.07(1), which appears in Internal Revenue Bulletin , dated January 28, 2013 (1) Section 63(c) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 63(c)) (c) Personal Exemption (1) Revenue Procedure , Section 2.11, which appears in Internal Revenue Bulletin , dated January 28, 2013 (2) Section 151(d) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 151(d)) (d) Deduction Under Section 164(f) (1) Section 164(f) of the Internal Revenue Code of 1986, as amended (26 U.S.C. 164(f))