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 http://www.duganlopatka.com/contact-us