Law Offices Of Connie Yi, PC
Tell Us About Your Case

For the safety of our community, clients and staff, we have suspended all in-person meeting effective March 17, 2020. All consultation meetings will be via Phone or Zoom Video Conferencing. Please contact us at 925-484-0888 or email us directly at [email protected] to schedule the consultation.

Bay Area Estate And Tax Planning Law Firm
Estate Planning
Trust Administration and probate

Get
Started

IRS releases federal tax guidelines for 2014

| Nov 14, 2013 | Uncategorized |

The wait is over for 2014 tax provisions! If you weren’t necessarily sitting by your computer waiting for the news to come in, that’s alright. Tax issues are interesting to those who work with tax law every day, so the average reader might not be keeping close tabs on the comings-and-goings of the Internal Revenue Service.

However, tax adjustments are important for everyone and being aware of adjustments in advance can help individuals, businesses, and families make smarter decisions for the coming year. The biggest adjustment for the coming year generally has to do with inflation if there are no major tax law changes.

For the 2014 tax year, inflation adjustments will cause the standard deduction for married couples filing jointly to go up slightly, from $12,200 to $12,400. Estate tax exemptions are also adjusting for inflation in 2014, going up significantly from $5,250,000 in 2013 to $5,340,000.

One complicated issue that will be coming up in 2014 is the personal exemption phase-out, which will now apply at different levels once it is adjusted for inflation. The phase-out happens gradually, starting to reduce the personal exemption for individuals who earn at least $254,000 and fading out entirely for those who make at least $376,700.

These types of changes are important to keep in mind and track from year to year, particularly if there is a dispute with the IRS about how much is owed, whether one qualifies for various deductions that were taken, and what type of income must be reported to the IRS. Tax compliance issues can give way to an audit or some other dispute with the IRS and in those cases it helps to have an experienced advocate to argue the case.

Source: Wall Street Journal, “IRS Unveils Tax Rules for 2014,” Tom Herman, Nov. 10, 2013.

Categories

Archives

FindLaw Network

Recent Blog Post

What are reasonable fees to charge as a trustee in California?

When implementing an estate plan in California, it is essential to ensure that you receive the proper compensation for the amount of time and work you are putting in. The probate court will look through the amount you charge to see if it is reasonable, especially if...

What to know about life insurance trusts

California families have an exemption for their estate that keeps it from being subject to income taxes. However, above that $11.7 million, the estate tax bill could get large. This is why they need to take measures to reduce the size of their taxable estate. Life...

Are estate taxes headed for changes?

Not every inheritance involves paying estate taxes, but some estates rise above the federal exclusion amount. California residents that feel familiar with state and federal tax rules might not realize changes could happen. Namely, proposals intended to raise tax...

View More Blog Posts