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TAX
E-ALERT
NOVEMBER 2013

 
 

IRS RELEASES 2014 INCOME AND TRANSFER TAX ADJUSTMENTS

INFLATION-ADJUSTED THRESHOLD AND CEILING INCREASES

The Social Security Administration and the IRS have released their 2014 list of CPI-adjusted items that will affect individual income, payroll and transfer tax calculations for 2014. We have provided you with some of the key provisions in the following grids.

INCOME TAXS

Threshold amounts above which the top regular and alternative minimum tax (AMT) rates apply.

2014
2013


39.6% bracket threshold:

Joint returns / surviving spouses
Heads of household
Other unmarried individuals
Married filing separately
Estates and Trusts

Taxable income above:
$457,600
$432,200
$406,750
$228,800
$12,150
Taxable income above:
$450,000
$425,000
$400,000
$225,000
$11,950


AMT 28% bracket threshold:

Joint returns / surviving spouses
Other unmarried individuals
Married filing separately
Estates and Trusts

AMTI above:
$182,500
$182,500
$91,250
$182,500
AMTI above:
$179,500
$179,500
$89,750
$179,500

Personal exemption, standard deduction and foreign income exclusion amounts:

2014
2013


Personal exemption amount

$3,950
$3,900

Personal exemption phased-out:
Joint returns / surviving spouses
Heads of households
Other unmarried individuals
Married filing separately

Beginning/ending at AGI of:
$305,050 / $427,550
$279,650 / $402,150
$254,200 / $ 376,700
$152,525 / $213,775
Beginning/ending at AGI of:
$300,000 / $422,500
$275,000 / $397,500
$250,000 / $372,500
$150,000 / $211,250


Standard deduction:

Joint returns / surviving spouses
Heads of households
Other unmarried individuals
Married filing separately


$12,400
$9,100
$6,200
$6,200

$12,200
$8,950
$6,100
$6,100


Foreign income exclusion amount

$99,200
$97,600

AMT exemption amounts and the AMT exemption phase-out amounts:

2014
2013


AMT exemption amounts:

Joint returns / surviving spouses
Unmarried individuals
Married filing separately
Estates and Trusts


$82,100
$52,800
$41,050
$23,500

$80,800
$51,900
$40,400
$23,100


AMT exemption phased-out:

Joint returns / surviving spouses
Other unmarried individuals
Married filing separately
Estates and Trusts


$156,500
$117,300
$78,250
$78,250

$153,900
$115,400
$76,950
$76,950

PAYROLL TAXES

Employment taxes imposed on wage earners:

2014
2013


Social Security tax wage base:

Wage ceiling amount
Maximum tax (rate = 6.2%)

1.45% Medicare tax wage bracket:
Joint filers
Married separate taxpayers
Other wage-earners

2.35% Medicare tax wage bracket:
Joint filers
Married separate taxpayers
Other wage-earners



$117,000
$7,254.00



First $250,000 of wages
First $125,000 of wages
First $200,000 of wages


Wages above $250,000
Wages above $125,000
Wages above $200,000


$113,700
$7,049.40



First $250,000 of wages
First $125,000 of wages
First $200,000 of wages


Wages above $250,000
Wages above $125,000
Wages above $200,000

Self-employment (SE) taxes:

2014
2013


Social Security tax wage base:

SE income ceiling amount
Maximum tax (rate = 12.4%)

2.9% Medicare tax wage bracket:

Joint filers
Married separate taxpayers
Other SE income-earners

3.8% Medicare tax wage bracket:

Joint filers
Married separate taxpayers
Other SE income-earners



$117,000
$14,508.00


First $250,000 of wages
First $125,000 of wages
First $200,000 of wages


Wages above $250,000
Wages above $125,000
Wages above $200,000


$113,700
$14,098.80


First $250,000 of wages
First $125,000 of wages
First $200,000 of wages

Wages above $250,000
Wages above $125,000
Wages above $200,000

TRANSFER TAXES

Estate and gift tax exclusions and valuation limitation:

2014
2013

Basic estate / gift tax exclusion


$5,340,000


$5,250,000


Generation-skipping tax exclusion

$5,340,000
$5,250,000


Gift tax annual exclusion
For gifts to a non-citizen spouse

$14,000
$145,000
$14,000
$143,000


Special use value reduction limit

$1,090,000
$1,070,000

CONTACT

If you have any questions about this alert or would like further information on the recent tax changes, please contact, Brian L. Gaudet, Marjorie Suisman,
Donna M. White, or George L. Chimento.

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