IRS announces inflation adjustments for tax year 2013

IRS announces inflation adjustments for tax year 2013

TaxesToday, I received the following information from the IRS via their email newsletter service.  Keep in mind, these adjustments apply to the tax year 2013, not the filing of tax returns in 2013. For most people, these adjustments will be reflected in  tax returns filed in 2014,  based on 2013 activity.

In 2013, Various Tax Benefits Increase Due to Inflation Adjustments

WASHINGTON — 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, which will be published in Internal Revenue Bulletin 2012-45 on Nov. 5, 2012.

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