Each year the IRS adjusts certain tax numbers for inflation and tax law changes. Here are some of the adjusted numbers you’ll need for your 2014 tax planning.
* STANDARD MILEAGE RATE for business driving drops to 56¢ a mile. Rate for medical and moving mileage drops to 23.5¢ a mile. Rate for charitable driving remains at 14¢ a mile.
* SECTION 179 maximum deduction decreases to $25,000, with a phase-out threshold of $200,000. (Legislation may reinstate the 2013 deduction amount of $500,000, with a $2,000,000 purchase limit.)
* SOCIAL SECURITY taxable wage limit increases to $117,000. Retirees under full retirement age can earn up to $15,480 without losing benefits.
* KIDDIE TAX threshold remains at $2,000 and applies up to age 19 (up to age 24 for full-time students).
* NANNY TAX threshold increases to $1,900.
* HSA CONTRIBUTION limit increases to $3,300 for individuals and to $6,550 for families. An additional $1,000 may be contributed by those 55 or older.
* 401(k) maximum salary deferral remains at $17,500 ($23,000 for 50 and older).
* SIMPLE maximum salary deferral remains at $12,000 ($14,500 for 50 and older).
* IRA contribution limit remains at $5,500 ($6,500 for 50 and older).
* ESTATE TAX top rate remains at 40%, and the exemption amount increases to $5,340,000.
* The ANNUAL GIFT TAX EXCLUSION remains at $14,000.
* ADOPTION TAX CREDIT for adoption of an eligible child in 2014 is $13,190.