What Hasn’t Changed in 2014
As annualized inflation has been tame, the IRS has left some yearly limits and thresholds unaltered for 2014. Here is a list of key unchanged items:
| Traditional/Roth IRA Contribution Limit | $5,500 ($6,500 if 50 or older this year) |
| 401(k), 403(b), TSP Contribution Limit* | $17,500 ($23,000 if 50 or older this year) |
| SIMPLE Plan Contribution Limit | $12,000 ($14,500 if 50 or older this year) |
| SEP Eligibility Threshold (minimum compensation amount) | $550 |
| FSA Contribution Limit | $2,500 |
| Maximum Federal Estate Tax Rate | 40% |
| Federal Gift Tax Exclusion | $14,000 |
| “Kiddie” Tax Standard Deduction | $1,000 |
| “Kiddie” Tax Threshold (unearned income of a child) | $2,000 |
| Child Tax Credit Eligibility Threshold (earned income) | $2,000 |
| American Opportunity Tax Credit | $2,500 |
| Lifetime Learning Credit | $2,000 |
| Student Loan Interest Deduction** | $2,500 |
*Also applies to most 457 plans
**No longer limited to interest paid during first 60 months of repayment
Contact ABIP today for more information on the IRS 2014 Tax Changes!
This Special Report is not intended as a guide for the preparation of tax returns. The information contained herein is general in nature and is not intended to be, and should not be construed as, legal, accounting or tax advice or opinion. No information herein was intended or written to be used by readers for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. Readers are cautioned that this material may not be applicable to, or suitable for, their specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. Readers are encouraged to consult with professional advisors for advice concerning specific matters before making any decision. Both ABIP and MarketingLibrary.Net, Inc. disclaims any responsibility for positions taken by taxpayers in their individual cases or for any misunderstanding on the part of readers. Neither ABIP nor MarketingLibrary.Net, Inc. assume any obligation to inform readers of any changes in tax laws or other factors that could affect the information contained herein.
