The IRS has announced the annual inflation adjustments for a number of provisions for the year 2014. These numbers and rates are those you will use to prepare your 2014 tax returns in 2015.
Standard Mileage Rate for the use of an automobile will be 56 cents per mile for business miles driven.
Social Security taxable wage limit increases from the 2013 limit of $113,700 to $117,000 for 2014. Retirees under full retirement age can earn up to $15,480 without losing benefits.
401(k) maximum salary deferral remains at $17,500 for 2014. The catch-up limit for 50 and older also remains unchanged at $5,500.
SIMPLE maximum deferral remains at $12,000 for 2014. The catch-up limit for 50 and older also remains unchanged at $2,500.
IRA Contribution limit remains at $5,500 for 2014 ($6,500 for 50 and older).
HSA Contribution limit increases for 2014 to $3,300 for individuals and to $6,550 for families.
Annual Gift Tax Exclusion remains at $14,000.
Estate Tax Exemption increases from the 2013 amount of $5,250,000 to $5,340,000 for 2014.