The IRS and the Social Security Administration have published some inflation-adjusted numbers for 2013. Use these numbers as you begin your tax and financial planning for 2013.
- Social security taxable wage limit for 2013 will be $113,700. Retirees under full retirement age can earn up to $15,120 without losing benefits.
- The threshold for unearned income a child can earn in 2013 without having the kiddie tax apply is $2,000.
- The amount that can be given each year without paying gift tax is $14,000 ($28,000 for joint gifts).
- The amount that can be set aside in a health savings account is limited to $3,250 for individuals and $6,450 for families. Those 55 or older can contribute an additional $1,000.
- The maximum salary deferral for a 401(k) increases in 2013 to $17,500. The catch-up limit for those 50 or older remains unchanged at $5,500.
- The maximum IRA contribution limit increases to $5,500; the limit for those 50 or older is $6,500.
- The maximum salary deferral for SIMPLEs increases in 2013 to $12,000. The catch-up limit for those 50 or older remains unchanged at $2,500.
Contact our office if you have questions or wish to discuss early 2013 tax planning.