IRS Releases 2014 Inflation Adjusted Tax Figures
On October 31, 2013, the IRS issued its inflation adjusted numbers for 2014.
Estate and Gift Tax Numbers:
The inflation adjusted amounts for United States Estate and Gift Tax purposes for 2014 are as follows:
Estate Tax Exclusion:
• increased to $5,340,000 (up from $5,250,000 in 2013)
Annual Gift Tax Exclusion:
• remains at $14,000
Income Tax Numbers:
The inflation adjusted amounts for United States Income Tax purposes for 2014 are as follows:
Standard Deductions:
• $6,200 for single filing taxpayers and married taxpayers filing separately
• $12,400 for married taxpayers filing jointly
• $9,100 for taxpayers filing head of household
Personal Exemption:
• increased to $3,950
Earned Income Credit:
• The maximum earned income tax credit has increased to $6,143
Retirement Plan contribution limits remain unchanged for 2014:
• 401(k), 403(b), 457 Plans and Thrift Savings Plans contribution limit - $17,500
• Catch-up contribution limit for individuals over 50 - $5,500
Income Tax Brackets for 2014 are as follows:
Estate and Gift Tax Numbers:
The inflation adjusted amounts for United States Estate and Gift Tax purposes for 2014 are as follows:
Estate Tax Exclusion:
• increased to $5,340,000 (up from $5,250,000 in 2013)
Annual Gift Tax Exclusion:
• remains at $14,000
Income Tax Numbers:
The inflation adjusted amounts for United States Income Tax purposes for 2014 are as follows:
Standard Deductions:
• $6,200 for single filing taxpayers and married taxpayers filing separately
• $12,400 for married taxpayers filing jointly
• $9,100 for taxpayers filing head of household
Personal Exemption:
• increased to $3,950
Earned Income Credit:
• The maximum earned income tax credit has increased to $6,143
Retirement Plan contribution limits remain unchanged for 2014:
• 401(k), 403(b), 457 Plans and Thrift Savings Plans contribution limit - $17,500
• Catch-up contribution limit for individuals over 50 - $5,500
Income Tax Brackets for 2014 are as follows:
Tax Rate | Single | Married Filing Joint | Married Filing Separate | Head of Household |
10% | Up to $9,075 | Up to $18,150 | Up to $9,075 | Up to $12,950 |
15% | $9,076 - $36,900 | $18,151 - $73,800 | $9,076 - $36,900 | $12,951- $49,400 |
25% | $36,901- $89,350 | $73,801 - $148,850 | $36,901 - $74,425 | $49,401- $127,550 |
28% | $89,351 - $186,350 | $148,851 - $226,850 | $74,426 - $113,425 | $127,551- $206,600 |
33% | $186,351- $405,100 | $226,851 - $405,100 | $113,426 - $202,550 | $206,601- $405,100 |
35% | $405,101-$406,750 | $405,101 - $457,600 | $202,551 - $228,800 | $405,101- $432,200 |
39.6% | Over $406,750 | Over $457,600 | Over $228,800 | Over $432,200 |
If you have questions or concerns on the 2014 Inflation Adjustments and how it may impact your taxes, please call one of the following tax attorneys at MacDonald Illig Jones & Britton LLP:
• John A. Lauer - (814) 870-7712
• James E. Spoden - (814) 870-7710
• J. W. Alberstadt, Jr. - (814) 870-7750
• Shaun B. Adrian - (814) 870-7758
• Michael P. Thomas - (814) 870-7711
• S. Craig Shamburg - (814) 870-7716
• Nicholas J. Holland - (814) 870-7717
To ensure compliance with requirements imposed by the IRS, we inform you that any federal tax advice contained in this document, unless otherwise specifically stated, is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter that is contained in or accompanying this document.