IRS Increases 2013 Tax Benefits for Inflation

The IRS has just announced increased tax benefits for 2013. The text of the IRS announcement is included below: In 2013, Various Tax Benefits Increase Due to Inflation Adjustments IR-2012-78, Oct. 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.