Every year, certain important information on changes of tax and other important numbers are revised. The following is a listing of some of the most important numbers that have changed or remained the same for 2014.
1. Social Security Tax Wage Base – $176,100
2. Individual Retirement Account – Traditional Contribution- $7,000
3. ROTH, IRA- Individual Contribution- $7,000
4. 401k, and other types of Retirement Plans limit – $23,500
5. Additional catch-up contribution (to 401k) if 50 or older – $7,500
6. Business mileage – .70 cents/mile
7. Charitable Mileage – .14 cents/mile
8. Standard deduction on income taxes for married filing jointly-$29,200
9. Standard deduction for single person (or married filing separately)- $15,000
10. Exemptions:
- i. Personal exemption- $0 (until 2026)
- ii. Estate Exemption – $600
- iii. Trust Exemption – $300 (simple), $100 (complex)
- iv. Special Needs Trust (Qualified Disability Trust) – $5,050 (2024)
11. Estate tax exemption (federal)-$13,990,000
12. Gift exclusion(annual) – $19,000
13. Gift exclusion (lifetime) – $13,990,000
14. Net Investment Income Tax – 3.8%
15. Rate of tax above exclusion for estate and gift purposes- 40%
16. Maximum amount for community spouse if other spouse is institutionalized (Community Spouse Resource Allowance – CSRA) $157,920
17. Maximum amount the institutionalized spouse is permitted to have (could change by state) – $2,000 Federally – in California there is no asset limit, only an income limit (138% of federal poverty level – $15,650)
18. Home equity limit for long-term care purposes:
- a. Minimum – $730,000
- b. Maximum – $1,097,000
19. Max Income Tax Rate (federal) – 37% at $626,350+
20. Max Income Tax Rate (California) (2024) – 12.3% at $698,271+
21. Max Trust Tax Rate (federal) – 37% at $15,650+
22. Max Trust Tax Rate (California) – 12.3% (same as ordinary income)