James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
What Americans Should Know About The 2014 Tax Brackets
Author: James F. McDonough
Date: January 1, 2014
Key Contacts
Back
With only a few days left until the new year rolls in, many Americans are conducting their year-end tax planning and establishing their tax plans for 2014. The Internal Revenue Service recently released the income tax brackets for the 2014 tax year, which will be essential in helping individuals make informed decisions about their various strategies next year, including estate and gift taxes.
For many filers, the 2014 rates will be a step up from this year’s parameters due to inflation. For instance, the standard deduction will increase by $100 to $6,200 for singles, and $12,400 for married joint filers. Head of Household filers can take a standard deduction of $9,100. The personal exemption amount will rise to $3,950 in 2014, up from $3,900 in 2013. The 2013 exemption of $80,800 for married joint filers will also increase by $1,300 in 2014. For single filers it will rise by $900 from the $51,900 level in 2013.
In addition to changes to the standard deduction and personal exemption amounts, the lifetime gift and estate tax exemption was made permanent and indexed for inflation for 2014. Although the tax exclusion on annual gifts will remain unchanged at $14,000, the lifetime gift and estate tax exemption will increase from $5.25 million in 2013 to $5.34 million next year. This increase may greatly help high net-worth earning individuals and business owners pass on a greater share of their wealth to future generations and make more calculated decisions as they relate to trusts and other vehicles aimed to keep family wealth intact.
It’s also important to note the “portability” of a deceased spouse’s unused exclusion amount, which was made a permanent part of the American Taxpayer Relief Act in 2012. The rule allows a surviving spouse to use the deceased spouse’s unused estate tax exclusion – up to $5.34 million next year.
- Practices: Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Common Legal Mistakes NYC and New Jersey Business Owners Make
Operating a business in the New Jersey and New York City metropolitan region offers incredible opportunities, but it also requires navigating a dense and highly regulated legal environment. From entity formation to regulatory compliance, seemingly minor legal oversights can expose business owners to significant risk. In our work with businesses throughout the region, our attorneys […]
Author: Dan Brecher
What Founders Can Learn From Start-up Suits
High-profile founder litigation is more than just a media spectacle. For startup founders, these cases underscore the legal and structural risks that can arise when rapid growth outpaces formal oversight. While launching a new company can be both an exciting and deeply rewarding endeavor, founders must be mindful that it also comes with significant risks. […]
Author: Dan Brecher
Corporate Governance Reviews: A Practical Guide for New Jersey Companies
Every New Jersey company should periodically evaluate its governance framework. Strong corporate governance protects directors and officers, builds investor confidence, reduces litigation exposure, and positions a company for sustainable growth. The first quarter of the year is a great time to evaluate your corporate governance practices and perform any routine maintenance needed to keep that […]
Author: Ken Hollenbeck
What to Do After Being Served with a Lawsuit: Steps to Protect Your Legal Rights
Being served with a lawsuit is one of the most stressful legal events a business or individual can face. Whether the claim involves a contract dispute, an employment matter, an intellectual property issue, or another legal challenge, the actions you take in the first few days can significantly shape the outcome of your case. Acting […]
Author: Robert E. Levy
Will 2026 Be a Banner Year for SPACs? Understanding the Risks and Opportunities
Special Purpose Acquisition Companies (SPACs) continue to gain momentum as we move through 2026. After enduring a significant contraction following the 2021 boom and the regulatory scrutiny that followed, SPAC activity rebounded sharply in 2025 and now carries forward into 2026 with real momentum. The SPAC resurgence reflects broader improvements in both market conditions and the […]
Author: Dan Brecher
Why Compliance Monitoring Matters for NY and NJ Businesses
Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.