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
Fort Monmouth Redevelopment and the Transformation of Monmouth County Real Estate
The Fort Monmouth redevelopment has entered its execution phase, and it is repositioning the broader Monmouth County real estate market. When Netflix and the Fort Monmouth Economic Revitalization Authority closed on the 292-acre Mega Parcel in December 2025, the transaction did more than hand over a deed. It marked the moment Fort Monmouth stopped being […]
Author: Donald M. Pepe
Local Zoning and Land Use Rules Every New Jersey Rental Property Owner Should Understand
Owning a residential rental property in New Jersey involves more than finding tenants and collecting rent. Property owners must comply with a combination of state laws, municipal ordinances, building and housing codes, and zoning and land use regulations. These requirements can affect everything from the number of dwelling units permitted at a property to whether […]
Author: Donald M. Pepe
Real Estate Litigation Explained: Top 5 Disputes and How to Avoid Them
The five most common real estate disputes are breach of contract claims, landlord-tenant conflicts, zoning and land use disagreements, construction claims, and boundary disputes. Understanding why each arises, and taking preventive steps early, can help property owners, tenants, developers, and investors avoid costly litigation. Key Takeaways: Real estate transactions are complex endeavors involving numerous parties […]
Author: Paul Grossman
When a Child Turns 18: The Gap in Your Family’s Estate Plan
Once a child turns 18, parents lose the automatic legal authority to make medical and financial decisions on their behalf, even if the child still lives at home or remains on the family’s insurance. Three documents close that gap: a durable power of attorney, a health care proxy or directive, and a HIPAA authorization. For […]
Author: George McGowan
Business Mediation: An Overview and Practical Tips
Business mediation is a confidential, voluntary process in which a neutral third party helps companies negotiate a resolution to a commercial dispute without going to trial. Because working with a mediator is very different from litigating in the courtroom, it is important to understand how commercial mediation works, when it makes sense for your dispute, […]
Author: Paul Grossman
Top 5 Causes Leading to Construction Defect Litigation
The five most common causes of construction defect litigation are design defects, substandard materials, workmanship defects, code violations, and subsurface defects. Because these flaws can compromise a building’s integrity, functionality, or safety, they frequently lead to disputes involving multiple parties and high financial stakes. Key takeaways: What is Construction Defect Litigation? Construction litigation is complex, […]
Author: Paul Grossman
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.