Tax Benefits Increase
Recently, the IRS released new amounts for various tax benefits that are impacted by inflation. 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.
The IRS will release 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 in Revenue Procedure 2012-41, which will be published on November 5, 2012. You can obtain a copy of these new amounts by contacting one of our professionals.