Tax Planning for 2013, Various Tax Benefits Increase Due to Inflation Adjustments

Federal, State, Local and International Taxes – For tax year 2013, the Internal Revenue Service announced today annual inflation adjustments for more than two dozen tax provisions.

  • The annual exclusion for gifts rises to $14,000 for 2013, up from $13,000 for 2012.
  • The amount used to reduce the net unearned income reported on a child’s tax return subject to the “kiddie tax,” is $1,000, up from $950 for 2012.
  • The foreign earned income exclusion rises to $97,600, up from $95,100 in 2012.

Details on these inflation adjustments and others such as the low-income housing credit, the dollar limits for high-deductible health plans and other amounts can be found in Revenue Procedure 2012-41. Considering a Tax Professional? For no obligation free consultation contact us today!

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Amare Berhie, Senior Tax Accountant

amare@abataxaccounting.com

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Published in: on October 19, 2012 at 9:40 pm  Leave a Comment  
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