For tax year 2013, the Internal Revenue Service announced last week annual inflation adjustments for more than two dozen tax provisions. Some of the most impacting include –
-The annual exclusion for gifts rises to $14,000 for 2013, up from $13,000 for 2012.
-The amount used to reduce the net unearned income reported on a child’s tax return subject to the “kiddie tax,” is $1,000, up from $950 for 2012.
-The foreign earned income exclusion rises to $97,600, up from $95,100 in 2012.
Details on these inflation adjustments and others such as the low-income housing credit, the dollar limits for high-deductible health plans and other amounts can be found in Revenue Procedures released by the IRS.