The tax rules may change again in 2014, however, we did want to give you the updates for the following to help with your next year tax planning:
– Social Security taxable wage limit increases from 2013 limit of $113,700 to $117,000 for 2014. Retirees under full retirement age can earn up to $15,480 without losing benefits.
– Amt Exemptions for 2014 are $52,800 for singles, $82,100 for couples, and $41,050 for married couples filing separately.
– 401 K Maximum salary deferral remains at $17,500 for 2014. The catch-up limit for 50 and older also remains unchanged at $5,500.
– Simple maximum deferral remains at $12,000 for 2014. The catch-up limit for 50 and older also remains unchanged at $2,500.
– IRA Contribution limit remains at $5,500 for 2014 ($6,500 for 50 and older).
– HSA Contribution limit INCREASES for 2014 to $3,300 for individuals and to $6,550 for families. The catch-up contribution for 55 and older is $4000.
– KIDDIE Tax threshold for 2014 remains at $2000.-
– NANNY Tax threshold INCREASES from the 2013 level of $1,800 to $1,900 for 2014.
– ANNUAL Gift Tax Exclusion remains at $14,000.
– ESTATE Tax Exemption INCREASES from the 2013 amount of $5,250,000 to $5,340,000 for 2014.
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.