Jay Baxter CPA of Oglesby IL.
  Quick Answers about Annual Deductions and Limits


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EXEMPTIONS & DEDUCTIONS    2012 2013
Personal exemption  $3,800  $3,900
Standard deduction
Single $   5,950 $  6,100
Additional 65 and older and blind $   1,450 $   1,500
Head of household $   8,700 $   8,950
Additional 65 and older and blind $   1,450 $   1,500
Married jointly $  11,900 $  12,200
Additional 65 and older and blind $   1,150 $  1,200
Married separately $   5,950 $   6,100
Additional 65 and older and blind $   1,150 $  1,200
RETIREMENT PLANS  
Traditional and Roth IRA limit $  5,000 $   5,500
Additional traditional and Roth IRA age 50 and over catch up $  1,000 $   1,000
Traditional IRA phase out range
Married both covered by employer plan $ 92,000 - $112,000 $ 95,000 - $115,000
Single and head of household covered by employer plan $ 58,000 - $68,000 $ 59,000 - $ 69,000
Married but spouse is not covered by employer plan $173,000 - $183,000 $178,000 - $188,000
Roth IRA phase out range
Single and head of household $110,000 - $125,000 $112,000 - $127,000
Married $173,000 - $183,000 $178,000 - $188,000
Maximum elective employee contribution to 401k, 403b, 457 $17,000 $17,500
Maximum elective employee contribution to SIMPLE IRA $11,500 $12,000
Limit on annual additions to SEPs and defined contribution plans (profit sharing) $50,000 $51,000
Catch-up contribution limits (age 50 and over)  401k, 403b, 457, SARSEP $  5,500 $  5,500
SIMPLES $  2,500 $  2,500
IRA $  1,000 $  1,000
 SOCIAL SECURITY
Maximum wages subject to FICA (social security) $110,100 $113,700
Early retirement earnings limit $14,640 $15,120
Year of full retirement earnings limit $38,880 $40,080
 EDUCATION CREDIT
American Opportunity Tax Credit, maximum credit $  2,500 $  2,500
Life Time Learning Credit  $  2,000 $  2,000
Phase out American Opportunity Tax Credit
Single & head of household $80,000 $80,000
$90,000 $90,000
 Married $160,000 $160,000
$180,000 $180,000
Phase out Lifetime Learning Credit
Single & head of household $52,000 unavailable
$62,000 unavailable
Married $104,000 unavailable
$124,000 unavailable
HEALTH SAVINGS ACCOUNTS     
Individual  $  3,100 $   3,250
Family $  6,250 $   6,450
Age 55 and over catch up $  1,000 $   1,000
ANNUAL GIFT TAX EXCLUSION  
Maximum amount subject to social security $  13,000 $   14,000
 MILEAGE DEDUCTION
Business $   0.555 $   0.565
Medical & Moving $   0.23 $   0.24
Charitable $   0.14 $   0.14

For a free initial consultation regarding all of our accounting, bookkeeping, and consulting services call Jay Baxter CPA at 815-883-3500.