2013 IRS Inflation Adjustments
Below is a select list of the 2013 tax numbers, updated by the IRS to account for inflation. These will help with this year’s tax planning.
- 401K: The maximum amount of wages employees can put into a 401(k) plan increases to $17,500. The 2013 maximum allowed for SIMPLE plans increases to $12,000. If you are 50 or older, you can contribute up to $23,000 to a 401(k) and $14,500 to a SIMPLE plan.
- AMT: The alternative minimum tax exemption for 2013 is $51,900 for singles and $80,800 for couples filing joint returns.
- HSA: For 2013, the maximum amount that can be contributed to a health savings account (HSA) increases to $3,250 for individuals and $6,450 for families. Those 55 and older can contribute an additional $1,000.
- IRA: The maximum individual retirement account (IRA) contribution you can make in 2013 increases to $5,500 if you’re under age 50 and to $6,500 if you are 50 or older.
- Kiddie Tax: The “kiddie tax” threshold increases by $100 for 2013. If your child under age 19 (under age 24 for students) has more than $2,000 of unearned income this year (e.g., dividends and interest income), the excess could be taxed at your highest rate.
- Nanny Tax: The “nanny tax” threshold remains at $1,800 for 2013. If you pay household workers more than this amount during the year, you’re responsible for payroll taxes.
- SS Maximum Earning: The maximum earnings subject to social security tax increases to $113,700. The earnings limit for those under full retirement age is $15,120. For those at full retirement age, there is no earnings limit.
- Standard Mileage: The standard mileage rate for business driving increases to 56.5¢ per mile for 2013. The rate for medical and moving mileage increases from 23¢ per mile to 24¢ per mile. The general rate for charitable driving remains at 14¢ per mile.