Preview of Key 2014 Tax Figures

Posted on 06. Nov, 2013 by in VirtualConnections Newsletter

TaxChangesAheadWhile 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)

Standard Deductions:
Tax Year 2014 2013  
Single $6,200 $6,100  
Head of Household 9,100 8,950  
Married filing Joint 12,400 12,200  
Married filing separately 6,200 6,100  
Dependents 1,000 1000  
65 or blind: married Add $1,200 Add $1,200  
  single Add $1,550 Add $1,500  
Other Key figures:
Tax Year 2014 2013
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.

Year-End

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