IRS 2014 Tax Changes – Part 5

Apr 10, 2014 | Taxes

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

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