On October 18, 2012 the IRS announced the 2013 amounts of several tax benefits that are adjusted from time-to-time due to inflation. The three that will probably be of most interest to readers of this forum are as follows:
· The annual gift tax exclusion will increase to $14,000 ... up from $13,000 in 2012.
· The maximum employee deferral into a 401(k) plan will increase to $17,500 ... up from $17,000 in 2012.
· The amount of "unearned income" that can be excluded on a child’s tax return subject to the “kiddie tax" will be $1,000 in 2013 ... up from $950 in 2012.
The amounts of various other limitations related to employee plans, as well as the dollar levels for various phase-outs for IRA and Roth IRA contributions were also announced.
More information can be found in the "News & Events" section of the IRS's web site.
· The annual gift tax exclusion will increase to $14,000 ... up from $13,000 in 2012.
· The maximum employee deferral into a 401(k) plan will increase to $17,500 ... up from $17,000 in 2012.
· The amount of "unearned income" that can be excluded on a child’s tax return subject to the “kiddie tax" will be $1,000 in 2013 ... up from $950 in 2012.
The amounts of various other limitations related to employee plans, as well as the dollar levels for various phase-outs for IRA and Roth IRA contributions were also announced.
More information can be found in the "News & Events" section of the IRS's web site.