While official numbers for 2014 are not yet released by the Internal Revenue Service (IRS), many figures are based on formulas set within the Internal Revenue Code (IRC) and use the Consumer Price Index (CPI) published by the Department of Labor. They are noted here for your planning purposes:
Tax Brackets: While the actual income brackets for tax rates are not set for 2014, the rate of inflation that impacts the income levels for each tax rate is anticipated to raise the income brackets by approximately 1.7-1.8%. Please recall that beginning in 2013 there is a new 39.6% income tax rate in addition to a new Medicare surtax.
Personal Exemption: $3,950 in 2014 ($3,900 in 2013)
|Head of Household||9,100||8,950|
|Married filing Joint||12,400||12,200|
|Married filing separately||6,200||6,100|
|65 or blind:||married||Add $1,200||Add $1,200|
|single||Add $1,550||Add $1,500|
|Other Key figures:|
|Estate Gift tax exclusion||$5.34 million||$5.25 million|
|Annual Gift tax exclusion||$14,000||$14,000|
|Roth and Traditional IRA Contribution limit||5,500||5,500|
Caution: Remember, these are early figures using the recently announced Consumer Price Index. Official numbers are released by the IRS later this year.