Various Tax Benefits Increase Due to Inflation Adjustments

Various Tax Benefits Increase Due to Inflation Adjustments

News story posted in Information Release on 22 October 2012| comments
audience: National Publication | last updated: 22 October 2012
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Summary

For tax year 2013, the Internal Revenue Service has announced annual inflation adjustments for more than two dozen tax provisions. Of note is the increase of the annual gift tax exclusion to $14,000.

IR-2012-78

Full Text:

In 2013, Various Tax Benefits Increase Due

to Inflation Adjustments

October 18, 2012

WASHINGTON -- For tax year 2013, the Internal Revenue Service announced today annual inflation adjustments for more than two dozen tax provisions.

  • 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 Procedure 2012-41, which will be published in Internal Revenue Bulletin 2012-45 on Nov. 5, 2012. 

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