Tax Planning for 2013, Various Tax Benefits Increase Due to Inflation Adjustments

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Federal, State, Local andInternational Taxes -For tax year 2013, the Internal Revenue Service announced today annual inflationadjustments for more than two dozen tax provisions.

• The annualexclusion for gifts rises to $14,000 for 2013, up from $13,000 for 2012.
• The amountused to reduce the net unearned income reported on a child’s tax return subjectto the “kiddie tax,” is $1,000, up from $950 for 2012.
• The foreignearned income exclusion rises to $97,600, up from $95,100 in 2012.

Details onthese inflation adjustments and others such as the low-income housing credit,the dollar limits for high-deductible health plans and other amounts can befound in Revenue Procedure 2012-41. Considering a Tax Professional? For noobligation free consultation contact us today!ABA Tax AccountingAmare Berhie, Senior TaxAccountantamare@abataxaccounting.com612-282-3200866-936-0430 Toll Freehttp://www.abataxaccounting.comwww.abatax81.blogspot.comwww.abataxaccounting.wordpress.com