Inflation Adjusted Amounts for Tax Year 2013

Post Date: 10/26/12
Last Updated: 10/26/12


Cross References
• IR-2012-77, October 18, 2012
• Rev. Proc. 2012-41

The IRS recently released some of the inflation adjusted amounts for tax year 2013. The following chart compares some of the common tax provisions to the 2012 tax year inflation adjusted amounts.

Tax Provision 2013 2012
IRA contribution limits $5,500 $5,000
IRA contribution limits (age 50 and over) $6,500 $6,000
401(k) elective deferral limits $17,500 $17,000
401(k) elective deferral limits (age 50 and over) $23,000 $22,500
Defined contribution plan contribution limits $51,000 $50,000
SIMPLE contribution limits $12,000 $11,500
SIMPLE contribution limits (age 50 and over) $14,500 $14,000
Annual exclusion for gifts $14,000 $13,000
Maximum taxable Social Security earnings $113,700 $110,100
Social Security earnings limit when under full retirement age $15,120 $14,640
Social Security earnings limit for year of full retirement age $40,080 $38,880
COLA increase for those receiving Social Security benefits 1.7% 3.6%

Inflation adjusted amounts for expiring provisions were not included. The IRS announced those amounts will be addressed in future guidance. Congress is not expected to address the expiring tax provision issue until late in the year or early in 2013. Expiring provisions affect 2013 inflation numbers for the following:
• Tax rate tables. • Adoption assistance exclusion.
• Child tax credit. • Personal exemptions.
• Hope and Lifetime Learning Credits. • Section 179 expense deduction.
• Earned Income Credit. • Interest deduction on education loans.
• The standard deduction. • Unified credit against estate tax.
• The overall limitation on itemized deductions.
• Qualified transportation fringe benefits.

TheTaxBook 1040 Edition and Deluxe Edition will include all 2013 inflation adjusted amounts available as of December 1, 2012 in Tab 1, What’s New. The new book, TheTaxBook What’s New In-Depth Edition, will include all 2013 inflation adjusted amounts available as of January 1, 2013 in Tab 1, What’s New Summary. Any 2013 inflation adjusted amounts announced after these dates will be included in TheTaxBook Update Service on our website at
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