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In 2013, Various Tax Benefits Increase Due to Inflation Adjustments
For tax year 2013, the Internal Revenue Service announced annual inflation adjustments for more than two dozen tax provisions. Here are three that might be of particular interest to WNDE clients:
• 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, which was published in Internal Revenue Bulletin 2012-45 in November.