Finance & Loans
Beneficial tax changes for 2013
January 9, 2013 by elegant · Leave a Comment
It is time to gather papers and get ready to file your 2012 tax return. So, many of us are not paying that much attention to some beneficial tax changes for 2013. But it is also time to take advantage and plan accordingly.
Roth IRA contribution limits have been increased for 2013. For joint filers limits have been increased to $178,000 to $188,000. For Tax Year 2012 these limits were from $173,000 to $183,000. For those single filers rates have been increased to $112,000 to $127,000. Due to these upper income limits many will be able to contribute to a Roth IRA. If you were unable to contribute before and new limits make you eligible, start contributing to a Roth IRA now rather than waiting till the end of the year. It will start earning interest, tax free for your retirement.
Limits on gifts have also been raised to $14,000 for 2013. This is an increase of $1,000 from 2012. You can gift to anyone up to the new limit without having to file a gift tax return. With the higher gas prices comes the higher mileage rate for 2013. Business mileage goes up to 56.5 cents and mileage for medical and moving is 24 cents a mile.