Wednesday, February 13, 2013

Important Tax Figures for 2013

The following table provides some important federal tax information for 2013, compared with 2012. Some of the dollar amounts change due to inflation. Other amounts are changing due to legislation.


Social Security/ Medicare
2013
2012
Social Security Tax Wage Base
$113,700
$110,100
Medicare Tax Wage Base
No limit
No limit
Employee portion of Social Security
6.2%
4.2%
Individual Retirement Accounts
2013
2012
Roth IRA Individual, up to 100% of earned income
$  5,500
$  5,000
Traditional IRA Individual, up to 100% of earned Income
$  5,500
$  5,000
Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older
$  1,000
$  1,000
Qualified Plan Limits
2013
2012
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)
$ 51,000
$ 50,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))
$205,000
$200,000
Maximum compensation used to determine contributions
$255,000
$250,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))
$ 17,500
$ 17,000
401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older
$  5,500
$   5,500
SIMPLE deferrals (Section 408(p)(2)(A))
$ 12,000
$ 11,500
SIMPLE additional "catch-up" contributions for employees age 50 and older
$  2,500
$   2,500
Compensation defining highly compensated employee  (Section 414(q)(1)(B))
$115,000
 $115,000
Compensation defining key employee (officer)
$165,000
$165,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))
$    550
 $     550
Driving Deductions
2013
2012
Business mileage, per mile
56.5 cents
55.5 cents
Charitable mileage, per mile
14 cents
14 cents
Medical and moving, per mile
24 cents
23 cents
Business Equipment
2013
2012
Maximum Section 179 deduction
$500,000
$500,000
Phaseout for Section 179
$2
million
$2
million
Transportation Fringe Benefit Exclusion
2013
2012
Monthly commuter highway vehicle and transit pass
$   245
$    240*
Monthly qualified parking
$   245
$    240
Standard Deduction
2013
2012
Married filing jointly
$12,200
$ 11,900
Single (and married filing separately)
$ 6,100
 $  5,950
Heads of Household
$ 8,950
$   8,700
Personal Exemption
2013
2012
Amount
$ 3,900**
$ 3,800
Domestic Employees
2013
2012
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.
$ 1,800
$  1,800
Kiddie Tax
2013
2012
Net unearned income not subject to the "Kiddie Tax"
$ 2,000
$  1,900
Estate Tax
2013
2012
Federal estate tax exemption
$5.25
million
$5.12
million
Maximum estate tax rate
40%
35%
Annual Gift Exclusion
2013
2012
Amount you can give each recipient
$ 14,000
$ 13,000


* The American Taxpayer Relief Act provided a retroactive increase from the $125 limit that had been in place.

** The exemption is subject to a phase-out that begins with adjusted gross incomes of $250,000 ($300,000 for married couples filing jointly). It phases out completely at $372,500 ($422,500 for married couples filing jointly.)

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