Tax Statistics and Facts

TAX CHANGES ★2014 ★ Tax Rules for 2014 BASIC STANDARD DEDUCTION Standard Deduction $12,200 1 $12,400 $6,100 Married Single or Maried riing Separately $6,200 The basic standand deduction will increase to S12.400 for mamied couples Sing jintly froen S12.200 for 2013. It will be $6.200 for singles and maried people ling separately up from $6,100 for this year Nearly two-thirds of all filers typically choose the standard deduction. But before you do so, check to see if you would be better off itemizing your deduc- tions on Schedule A of Form 1040. It's tempting to choose the standard deduction since it's simpler. But you may be able to cut your tax bill by itemizing. ITEMIZED-DEDUCTION AMOUNTS $254,200 ESTATE TAX & GIFT TAX $5,250,000 Single Firs $305,050 $5,340,000 PERSONAL EXEMPTION Jont Flers $3,900 Linits for the 2014 tax year goss income of $254.200 for most singles, or $305.050 for içint filers. This provision often is keown intax circles as "Pease'ater a former member of Conges ill begin with adjusted eumotion will increase to $5300.000 ned year from $5250.000 this year But the annual git-tax eclusion will remain unchanged at $14,000. 2013 $3,950 2014 EARNED INCOME TAX CREDIT The personal exemption amount will be $3,950, up from $3,900 for 2013. But the amount begins to phase out once your income exceeds a certain level For 2014, the phaseout will begin with adjusted gross income of $254,200 for most singles, or $305,050 for married couples filing jointly. It typical- ly will phase out completely at $376,700 for singles, or $427,550 for joint filers. $6,044 $6,143 2014 2013 The maximum amount of the "earned income tax credit." designed to belp the woding poo ill be $6143 for joint filers with thre or more qualitying children. That's up from $5,044 for 2013. SOCIAL SECURITY CHANGES $2,533 $2,642 Maximum monthly Social Security benefit limit will increase to $2,642, up from the current cap of $2,533. SOCIAL SECURITry SOCIAL SECURITY 6.2% PAYROLL TAX $15,480 $41,400 $114,000 The Social Security annual earnings limit will increase in 2014. For people attaining normal retirement age after 2014, the annual exempt amount in 2014 is $15,480. For those reaching normal retirement age in 2014, the annual exempt amount is $41,400. The wage base for Social Security tanes is alsa rising for those on the jeb. American workers will pay a 62% payroli tax on the ital S114.000 ef their incomes in 2014. is esmaea 6% of working Americans will pay higher Social Security tan ned year Traditional Iras $5,500 Single and head-t-household tax filers covered by a workplace retirement plan Phase-out is betweren $60,001-$70,000 The 2014 contribution limit for a Traditional IRA will remain at $5,500, with an additional $1,000 catch-up contribution allowed for those ages 50 and older. Married filing jointly Only One Covered Both Covered Mamied filing jointly, covered by a morkplace retirement plan Phase-out is betwoen Spouse covered by a moriplace tiement plan and you arent Phase-out is between $181,001-$191,000 $96,001-$116,00O ROTH IRAS Single and head-ef-househeld tax filers: Phase-out is $114,000-$129,000 $5,500 The 2014 contribution limit for a Roth IRA will remain at $5,500, with an additional $1,000 catch-up contribution allowed for those 50 and older. Mantied fing jointly. Phase-out is $181,000-$191,000 401(k)s, 403(b)s, 457 Plans, SEP & SIMPLE IRAS Federal Thrift Savings Plans $260,000 SEP $12,000 $14,500 $17,500 $23,000 Less than 50 Over 50 Contribution limits on these plans will remain the same for 2014 allowing those under age 50 to contribute up to $17,500 annually. Those over age 50 can contribute $23,000 annually. In 2014, the maximum allowable compensation for SEP IRA contributions increases to $260,000. The threshold for an employee to be included in a SEP plan remains the same at $550 for 2014. The maximum SIMPLE IRA contribution remains at $12,000 for those less than 50 years of age, while those over 50 can contribute $14,500 in 2014. Profit-Sharing Plans ESOPS Deferral Limit $17,500 $20,000 $1,050,000 Less than 50 Over 50 $260,000 Maximum Account Balance The compensation limitation increases to $260,000, while the maximum contribution amount across multiple plans will be the lesser of 100% of your compensation. $210,000 Dollar Amount In 2014, the maximum account balance in an ESOP subject to a 5-year distribution period increases to $1,050,000. The dollar amount used to determine the lengthening of the 5-year distribution period also increases in 2014 to $210,000. Multiple Plans $52,000 $57,500 Less than 50 Over 50 Sources: http://online wsjcom/news/articles/S810001424052702303482504579177652444390672 http://ftmdaily.com/daly-briefingakooktoward taxchanges-in-2014 INFOGRAPHIC DESIGNED BY ENationalPositions SSociates, ales, NC. AX CONSULIANIS