From our CPA office in St. Petersburg, FL – The IRS has released 2013 inflation adjusted figures for several tax benefits, including the gift tax exclusion and the nanny tax. Listed below are the new limits
1. Annual gift tax exclusion is $14,000 per donee.
2. Nanny tax reporting threshold is $1,800 to any one employee per year.
3. The foreign earned income exclusion increases to $97,600.
4. Kiddie tax – the amount used to reduce the net unearned income reported on a child’s tax return subject to the “kiddie tax” is $1,000.
5. The Social Security wage base for 2013 is $113,700, up from $110,100 in 2012. Once tax payers reach this limit, they no longer have to pay the social security tax on their wages. Income above this limit is still subject to Medicare taxes however, which have no annul limit.
We at McAtee and Associates want to insure that taxpayers receive all tax benefits they are entitled to. If you have questions, call us today. As tax professionals, McAtee & Associates can help both individual and business taxpayers with all their tax matters.
ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.
