Monthly Archives: January 2014

IRS Inflation Adjustments for 2014

Each year the IRS adjusts certain tax numbers for inflation and tax law changes. Here are some of the adjusted numbers you’ll need for your 2014 tax planning.

* Standard mileage rate for business driving decreases to 56¢ a mile. Rate for medical and moving mileage decreases to 23.5¢ a mile. Rate for charitable driving remains at 14¢ a mile.

* Section 179 maximum first-year expensing deduction decreases to $25,000, with a phase-out threshold of $200,000.

* Social security taxable wage limit increases to $117,000. Retirees under full retirement age can earn up to $15,480 without losing benefits.

* Kiddie tax threshold remains at $2,000 and applies up to age 19 (up to age 24 for full-time students).

* Nanny tax threshold increases to $1,900.

* Health savings account (HSA) contribution limit increases to $3,300 for individuals and to $6,550 for families. An additional $1,000 may be contributed by those 55 or older.

* 401(k) maximum salary deferral remains at $17,500 ($23,000 for 50 and older).

* SIMPLE maximum salary deferral remains at $12,000 ($14,500 for 50 and older).

* IRA contribution limit remains at $5,500 ($6,500 for 50 and older).

* Estate tax top rate remains at 40%, and the exemption amount increases to $5,340,000.

* The annual gift tax exclusion remains at $14,000.

* Tax credit for adopting a child is $13,190 for 2014.

* Alternative minimum tax exemption amounts increase to $52,800 for single taxpayers and $82,100 for married couples filing a joint return.

* Limit on transportation fringe benefit is $130 for vehicle/transit passes and $250 for qualified parking.

Chicago area businesses can receive a free copy of our Handy Tax Guide which contains all of the tax numbers you need (while supplies last). To receive your copy, contact us via our contact form at website

IRS Issues Phone Scam Alert

he IRS has issued a warning about the latest phone scam. The caller claims to be from the IRS and tells the intended victims they owe taxes which must be paid immediately with a pre-paid debit card or wire transfer. Individuals who don’t pay up are threatened with arrest or loss of their business or driver’s license.

Watch for these signs that the call is a scam:

* Use of fake IRS badge numbers.

* Caller knows the last four digits of your social security number.

* Caller ID appears as if IRS is calling.

* Bogus IRS e-mail is sent as follow-up.

* Second call claims to be from police or DMV, again supported by fraudulent caller ID.

Don’t respond in any way to these scams; instead forward the scam e-mail to, or file a complaint at

Major Tax Deadlines for February 2014

* February 18 – Deadline for brokers to provide 2013 Forms 1099-B and 1099-S to customers.

* February 28 – Payers must file 2013 information returns (such as 1099s) with the IRS. (Electronic filers have until March 31 to file.)

* February 28 – Employers must send 2013 W-2 copies to the Social Security Administration. (Electronic filers have until March 31 to file.)

Note: Businesses are required to make federal tax deposits on dates determined by various factors that differ from business to business.

Payroll tax deposits: Employers generally must deposit Form 941 payroll taxes (income tax withheld from employees’ pay and both the employer’s and employees’ share of social security taxes) on either a monthly or semiweekly deposit schedule. There are exceptions if you owe $100,000 or more on any day during a deposit period, if you owe $2,500 or less for the calendar quarter, or if your estimated annual liability is $1,000 or less.

* Monthly depositors are required to deposit payroll taxes accumulated within a calendar month by the fifteenth of the following month.

* Semiweekly depositors generally must deposit payroll taxes on Wednesdays or Fridays, depending on when wages are paid.

For more information on tax deadlines that apply to you or your business, contact our office at (630) 665-4440.