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There have been many tax changes for 2014. The following table provides some important federal tax information for 2014 (and 2013). Some of the dollar amounts change due to inflation. Other amounts are changing due to legislation. Please contact GTM with any questions you may have.
|
Social Security/ Medicare |
2014 |
2013 |
| Social Security Tax Wage Base | $117,000 | $113,700 |
| Medicare Tax Wage Base | No limit | No limit |
| Employee portion of Social Security | 6.2% | 6.2% |
|
Individual Retirement Accounts |
2014 |
2013 |
| Roth IRA Individual, up to 100% of earned income | $5,500 | $ 5,500 |
| Traditional IRA Individual, up to 100% of earned Income | $5,500 | $ 5,500 |
| Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older | $1,000 | $ 1,000 |
|
Qualified Plan Limits |
2014 |
2013 |
| Defined Contribution Plan limit on additions on Sections 415(c)(1)(A) | $ 52,000 | $ 51,000 |
| Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) | $210,000 | $205,000 |
| Maximum compensation used to determine contributions | $260,000 | $255,000 |
| 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) | $ 17,500 | $ 17,500 |
| 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older | $ 5,500 | $ 5,500 |
| SIMPLE deferrals (Section 408(p)(2)(A)) | $12,000 | $ 12,000 |
| SIMPLE additional “catch-up” contributions for employees age 50 and older | $2,500 | $ 2,500 |
| Compensation defining highly compensated employee (Section 414(q)(1)(B)) | $115,000 | $115,000 |
| Compensation defining key employee (officer) | $170,000 | $165,000 |
| Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) | $ 550 | $ 550 |
|
Driving Deductions |
2014 |
2013 |
| Business mileage, per mile | 56 cents |
56.5 cents |
| Charitable mileage, per mile | 14 cents | 14 cents |
| Medical and moving, per mile | 23.5 cents | 24 cents |
|
Business Equipment |
2014 |
2013 |
| Maximum Section 179 deduction | $ 25,000* | $500,000 |
| Phase out for Section 179 | $200,000* | $2 million |
|
Transportation Fringe Benefit Exclusion |
2014 |
2013 |
| Monthly commuter highway vehicle and transit pass | $ 130** | $ 245** |
| Monthly qualified parking | $ 250 | $ 245 |
|
Standard Deduction |
2014 |
2013 |
| Married filing jointly | $ 12,400 | $ 12,200 |
| Single (and married filing separately) | $ 6,200 | $ 6,100 |
| Heads of Household | $ 9,100 | $ 8,950 |
|
Personal Exemption |
2014 |
2013 |
| Amount | $ 3,950 | $3,900*** |
|
Domestic Employees |
2014 |
2013 |
| Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. | $ 1,900 | $ 1,800 |
|
Kiddie Tax |
2014 |
2013 |
| Net unearned income not subject to the “Kiddie Tax” | $ 2,000 | $ 2,000 |
|
Estate Tax |
2014 |
2013 |
| Federal estate tax exemption | $5.34 million | $5.25 million |
| Maximum estate tax rate | 40% | 40% |
|
Annual Gift Exclusion |
2014 |
2013 |
| Amount you can give each recipient | $ 14,000 | $ 14,000 |
* The Section 179 amounts are scheduled to go down dramatically unless Congress acts to extend them. The amounts have been increased in recent years by various tax laws.
** The American Taxpayer Relief Act provided a retroactive increase from the $125 limit that had been in place for 2012. If Congress does not act, the amount will go down to $130 for 2014.
*** The exemption is subject to a phase-out that begins with adjusted gross incomes of $250,000 ($300,000 for married couples filing jointly). It phases out completely at $372,500 ($422,500 for married couples filing jointly.)
