Although there may still be tax changes in 2014, the IRS and the Social Security Administration (SSA) recently announced some changes for your consideration. Keep these new changes in mind as you make your 2014 tax plan.
* KIDDIE TAX threshold for 2014 remains at $2,000.
* NANNY TAX threshold increases from the 2013 level of $1,800 to $1,900 for 2014.
* AMT EXEMPTIONS for 2014 are $52,800 for singles, $82,100 for couples, and $41,050 for married couples filing separately.
* ESTATE TAX EXEMPTION increases from the 2013 amount of $5,250,000 to $5,340,000 for 2014.
* ANNUAL GIFT TAX EXCLUSION remains at $14,000.
* HSA CONTRIBUTION limit increases for 2014 to $3,300 for individuals and to $6,550 for families.
* 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).
* 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.
* 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.
If you need help preparing your financial plan contact our office at (260) 497-9761 to schedule an appointment with our Tax Advisors.