The IRS has announced the 2014 adjustments for those items under the Internal Revenue Code (“Code”) that are annually adjusted for inflation. Among the most significant of these are:
- The maximum 39.6% income tax bracket for a married couple filing jointly will become applicable at a taxable income level of $457,600 (increased from$450,000 in 2013) and on the return of an unmarried individual at $407,650 (increased from $400,000 in 2013). For married individuals who file separate returns, the maximum bracket becomes applicable at $228,800 (increased from $225,000 in 2013).
- The lifetime exemption from estate, gift, and generation-skipping transfer taxes will be $5,340,000 (increased from $5,250,000 in 2013).
- The annual exclusion for gifts of a present interest will remain at $14,000, as in 2013.