The Foreign Service Journal - January/February 2014 - page 53

THE FOREIGN SERVICE JOURNAL
|
JANUARY-FEBRUARY 2014
53
AFSA NEWS
WOMEN IN SECURITY AND DEVELOPMENT
FOCUS
AFSA NEWS
CALENDAR
THE OFFICIAL R CORD OF THE AMERICAN FOREIGN SERVICE ASSOCIATION
1/1/2014
New Year’s Day
AFSA Offices Closed
1/8/2014
12:00 - 2:00 PM
AFSA Governing Board
Meeting
1/16/2014
5:00 - 7:00 PM
AFSA Member
Happy Hour
1/20/2014
Martin Luther King Jr. Day
AFSA Offices Closed
2/5/2014
12:00 - 2:00 PM
AFSA Governing Board
Meeting
2/6/2014
Deadline for Academic/Art
Merit Awards
2/17/2014
President’s Day
AFSA Offices Closed
2/26/2014
AFSA Advocacy Day
Hill Reception
2/28/2014
Deadline for Dissent and
Performance Awards
Nominations
Federal and State Tax Provisions for the Foreign Service
Tax Guide continued on page 64
2013
AFSA
TAX
GUIDE
AFSA’s annual Tax Guide is
designed as an informational
and reference tool. Although
we try to be accurate, many
of the new provisions of the
tax code and the implications
of Internal Revenue Service
regulations have not been
fully tested. Therefore, use
caution and consult with
a tax adviser as soon as
possible if you have specific
questions or an unusual or
complex situation.
Foreign Service employ-
ees most frequently ask
AFSA about home ownership,
tax liability upon sale of a
residence and state of domi-
cile. We have devoted special
sections to these issues.
James Yorke (YorkeJ@state.
gov), who compiles the tax
guide, would like to thank
M. Bruce Hirshorn, Foreign
Service tax counsel, for his
help in its preparation.
FEDERAL TAX
PROVISONS
For 2013 the six tax rates for
individuals remain at 10, 15,
25, 28, 33 and 35 percent,
with a new 39.6-tax rate
added. The 10-percent rate
is for taxable income up to
$17,851 for married couples,
$8,126 for singles. The
15-percent rate is for income
up to $75,501 for married
couples, $38,251
for singles. The 25-per-
cent rate is for income up
to $146,401 for married
couples, $87,851 for singles.
The 28-percent rate is for
income up to $223,051 for
married couples and up to
$183,251 for singles. The
33-percent rate is for income
up to $398,351 for married
couples and singles. Annual
income above $398,351 is
taxed at 35 percent. Income
above $450,000 for married
couples and above $400,000
for singles is taxed at 39.6
percent.
Although long-term
capital gains are taxed at a
maximum rate of up to 15
percent and are reported on
Schedule D, married tax-
payers with income greater
than $450,000 and singles
greater than $400,000 pay
a capital gains rate of 20
percent. These rates are
effective for all sales in 2013,
except for those people who
fall within the 10 to 15 per-
cent tax bracket: their rate is
either 0 or 5 percent. Long-
term capital gain is defined
PLEASE NOTE
This guidance applies
to the 2013 tax year, for
returns due on April 15,
2014. We expect there will
be a variety of changes to
the tax code for the 2014
tax year, but at present,
we are not aware of any
possible changes that are
likely to apply to 2013.
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