IRS Announces 2014 Tax Brackets and Other Inflation Adjusted Items
On Oct. 31, the IRS announced the 2014 federal income tax brackets along with many of the other annually inflation adjusted tax items.
The brackets do not expand dramatically next year. For instance, $100k of taxable income in 2013 costs $21,293 for federal income tax on a single taxpayer…in 2014, the same $100k income will only cost $21,176, a savings of $117. The personal exemption increases $50 to $3,950, and standard deductions increase $100 for singles, $200 for marrieds, and $150 for head of household filers.
The annual exclusion for gifts stay at $14k for 2014, and the estate tax exemption increases to $5.34 million from $5.25 million in 2013.
The Revenue Procedure also describes the normal annual changes to many other taxes, everything from arrow shafts to airline tickets.
