On October 31, 2013 the IRS announced the inflation adjustments that affect tax brackets, personal exemptions, standard deductions, the AMT and many other items. Most amounts increased by about 1.7%.
For 2014 the standard deduction is $6,200 (single) or $12,400 (joint), plus the additional amount for over 65 or blind. The personal exemption amount increases $50 per person to $3,950.
The estate tax exclusion of decedents who die during 2014 increases to $5,340,000, up from $5,250,000 for estates of decedents who died in 2013. One item that did not increase is the annual gift tax exemption, remaining at $14,000, the same as for 2013. The gift tax exemption is subject to automatic inflation adjustments, but it isn't increased until the cumulative adjustments are $1,000. Accordingly, at the current rate of inflation this particular exclusion will increase by $1,000 about once every four years.
The full text of the IRS's announcement can be found on its web site by clicking "News and Events."
Supplement to the above, added on November 7, 2013:
The tax rate brackets that will be in effect for 2014 are contained in Rev Proc 2013-35. Here's a link:
The above Rev Proc contains all the inflation adjusted rates, deductions, exemptions, credits, phase-out levels, etc. for the year 2014.
For 2014 the standard deduction is $6,200 (single) or $12,400 (joint), plus the additional amount for over 65 or blind. The personal exemption amount increases $50 per person to $3,950.
The estate tax exclusion of decedents who die during 2014 increases to $5,340,000, up from $5,250,000 for estates of decedents who died in 2013. One item that did not increase is the annual gift tax exemption, remaining at $14,000, the same as for 2013. The gift tax exemption is subject to automatic inflation adjustments, but it isn't increased until the cumulative adjustments are $1,000. Accordingly, at the current rate of inflation this particular exclusion will increase by $1,000 about once every four years.
The full text of the IRS's announcement can be found on its web site by clicking "News and Events."
Supplement to the above, added on November 7, 2013:
The tax rate brackets that will be in effect for 2014 are contained in Rev Proc 2013-35. Here's a link:
The above Rev Proc contains all the inflation adjusted rates, deductions, exemptions, credits, phase-out levels, etc. for the year 2014.
Comment