The IRS has announced the 2013 inflation adjustments for certain tax provisions, but not for all. Adjustments for the tax tables, adoption credit, child tax credit, education credits, standard deduction, and personal exemption have not been released. Many of these provisions will expire or change at the end of 2012, depending on what Congress does. The following are items we do know for 2013:
- The tax deductible amount that can be contributed to an IRA goes up to $5,500 up from $5,000 in 2012.
- For a 401(k), 403(b) or 457(b) plan, employees may contribute $17,500, up from $17,000.
- The catch-up contribution limit for workers age 50 and above remains the same at $5,500.
- To contribute to a Roth IRA, the deduction is phased out for AGIs ranging from $178,000 to $188,000 for married filing jointly. For singles, the phase out range is $112,000 to $127,000.
- Starting in 2013, up to $14,000 can be given to any single individual without gift taxes, up from $13,000 in 2012. This is the first increase since 2009.
Social Security Wage Base
- The amount of wages which are subject to Social Security tax has increased to $113,700 from $110,100.
- Up to $1,000 in unearned income for a child under 18 will not be taxed. This is up from $950 in 2012.
Health Savings Accounts and High Deductible Health Plans
- The maximum contribution to a Health Savings Account is $3,250 for an individual, $6,450 for a family.
- For self-only coverage, the annual deductible for a "high deductible health plan" must be not less than $1,250, or $2,500 for family coverage.
- The annual out-of-pocket maximum expenses (deductibles, co-payments, etc) may not exceed $6,250 for self-only, or $12,500 for family coverage.