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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:

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.