Continued from our April 21 post, we’re going to take a look at tax credits, exemptions and exclusions for 2014. Not every category has changed for 2014 from last year, but we’ve included those as well.
Earned Income Tax Credit: The EITC for 2014 is $3,304 for married taxpayers filing jointly with one child; $5,460 for two children; $6,143 for three or more children; and $496 for couples without children.
Gift Tax Exclusion: The annual exclusion for gifts is $14,000, the same as last year.
Flexible Spending Account Maximum: The annual limit on employee contributions to an employer-sponsored FSA account is $2,500, the same as last year.
Individual Retirement Account Contributions Maximum: The maximum for IRA contributions is $5,500 for contributors under the age of 50, $6,500 for those 50 and older. For more on IRA contributions and limits, see our April 8, 2014 blog post.
Federal Estate Tax Exemption: The exclusion limit for estates in 2014 is $5,340,000, a $90,000 increase over the 2013 limit of $5,250,000.
For additional information, including 2014 tax tables, visit IRS Rev. Proc. 2013-35 online.
Have questions? Confused about how this impacts you? No problem. Synergetic Finance can help. Just give us a call at 206-386-5455 or email us, and our financial and tax planning experts will help you sort it out.
To your wealth,
Joseph M. Maas, CFA, CVA, ABAR, CM&AA, CFP®, ChFC, CLU®, MSFS, CCIM
President of Synergetic Finance
