Tax Summary

financial statments

 

Standard deduction

Single or Married filing separately $6,100
Married, filing jointly $12,200
Head of household $8,950
Personal Exemption $3,900

3.8% Net Investment Income Tax (Medicare surtax)

Single or Head of Household Above $200,000
Married, Filing Jointly Above $250,000
Married, Filing Separately Above $125,000

Long-term capital gains and qualified dividends

10% and 15% tax brackets 0%
25% – 35% tax brackets 15%
39.6% tax bracket 20%
Capital gains on collectibles 28%
Capital gains on certain depreciable property 25%

Gift and estate taxes

Gift tax annual exclusion $14,000
Annual marital exclusion for gift to non-citizen spouse $143,000
Highest gift tax rate 40%
Estate tax exclusion amount $5,250,000
Gift tax lifetime exemption $5,250,000
Generation skipping transfer tax exclusion $5,250,000

FICA Taxes

2013 Wage Base $113,700
Social security maximum -6.2% $7,049.40
Medicare -1.45% – No ceiling

IRA/Roth IRA

IRA contribution (under age 50)/Roth IRA $5,500
IRA contribution (50 and older))/Roth IRA $6,500
IRA deduction phase-out (qualified plan participant)
– Single or HOH $59,000 – $69,000
– Married, filing jointly $95,000 – $115,000
– Married, filing separately $0 – $10,000
– Spousal IRA deduction phase-out $178,000 – $188,000

Phase-out of Roth IRA contribution eligibility

Single $112,000 – $127,000
Married, filing jointly $178,000 – $188,000
Married, filing separately $0 – $10,000

SIMPLE Plan

SIMPLE elective deferral (under age 50) $12,000
SIMPLE elective deferral (50 and older) $14,500

Individual 401(k)

Employer contribution Up to 25% of compensation
Employee salary deferral (under 50) $17,500
Employee salary deferral (50 and older) $23,000
Total employer & employee additions $51,000 ($56,500 age 50 and older)

Other retirement plans

403(b), 457, and SARSEP elective deferral (under 50) $17,500
403(b), 457, and SARSEP elective deferral (50 & older) $23,000
Section 415 limit on additions to defined contribution plans $51,000
Section 415 limit on defined benefit plans $205,000
Highly compensated employee $115,000
Annual limit on includible compensation $255,000
Key Employee in Top-Heavy plan $165,000

Standard mileage rates

Business $0.565
Charitable $0.140
Medical & moving $0.240

This document is designed to provide general information on the subjects covered. Pursuant to IRS
Circular 230, it is not intended to provide specific legal or tax advice and cannot be used to avoid tax
penalties or to promote, market, or recommend any tax plan or arrangement.

Please contact J&R Accounting group professional for further information and advice.

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