2014Pocket Tables

Income Tax RatesDeductions

Retirement Plan LimitsGift and Estate Tax Rates

Medicare PremiumsSocial Security Benefits

Life Tables

2014 Pocket TablesAlthough no major new tax legislation has been enacted since the

American Taxpayer Relief Act of 2012, numerous tax changes occur in 2014 as tax provisions of laws enacted in previous years take effect. These changes include the implementation of the 2010 Affordable Care Act’s penalties and credits under the so-called “individual mandate” to maintain health insurance coverage meeting certain minimum requirements (see page 10) and the expiration of some tax breaks extended temporarily by the American Taxpayer Relief Act of 2012 (see pages 4 and 6). The 2014 Pocket Tables also includes Medicare premium and cost-sharing amounts (see page 12).

While focused on the changes for the current tax year, the 2014 Pocket Tables also includes corresponding numbers for 2013.

CONTENTSPage

2014 Federal Individual Income Tax Rates 12013 Federal Individual Income Tax Rates 2Standard Deductions and Personal and Dependency Exemptions 3Federal Alternative Minimum Tax 3Education Exclusions, Deductions, Credits 4Child Tax Credit 4Kiddie Tax 4Adoption Credit 4Federal Tax on Capital Gains and Qualified Dividends 5Federal Tax on Corporate Income 5Health Savings Accounts 5Business Deductions, Credits, and Fringe Benefits 6Benefit, Contribution, and Compensation Limits for Qualified Plans 7IRA and Employee Contribution Limits 7Catch-Up Contribution Limits 7IRA Phaseouts 8Required Minimum Distributions 8Comparing IRA Options 10Affordable Care Act Penalties and Credits 10Qualified Long-Term Care Insurance Premiums 11Federal Estate Tax Formula 2014 and 2013 11Federal Gift Tax Formula 2014 and 2013 11Federal Gift and Estate Tax Amounts 12Federal Gift and Estate Tax 2014 and 2013 12Medicare Premium and Cost-Sharing Amounts 12Social Security Tax 13Social Security Eligibility Figures 13Social Security OASDI Benefits 13Results of $1,000 Invested Annually 14United States Life Tables, 2009 14Inflation Rate History 15IRS Table 2001: One-Year Term Premiums 15

2014 POCKET TABLES ©2014 by Kaplan, Inc. All rights reserved. No part of this publication may be reproduced without written consent from the publisher. The information in Pocket Tables is summary in nature and is current only as of February 11, 2014. Users of this publication are advised to refer to the relevant legislation or other applicable materials to ensure accuracy and comprehensive coverage of the applicable material. Further, changes to legislation or applicable administrative actions that become effective after that date may make the information provided in this publication no longer current. For information, contact:

332 Front St. S., Suite 501 | La Crosse, WI 546011-800-824-8742 | www.kaplanpockettables.com

PPN: 3200-4480 ISBN: 978-1-4754-2217-7 / 1-4754-2217-2

2014 Federal Individual Income Tax Rates

Single Individuals

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $9,075 $0.00 10% $09,075 36,900 907.50 15% 9,075

36,900 89,350 5,081.25 25% 36,900 89,350 186,350 18,193.75 28% 89,350186,350 405,100 45,353.75 33% 186,350405,100 406,750 117,541.25 35% 405,100406,750 . . . . . 118,118.75 39.6% 406,750

Joint Returns and Surviving Spouses

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $18,150 $0.00 10% $018,150 73,800 1,815.00 15% 18,150

73,800 148,850 10,162.50 25% 73,800

148,850 226,850 28,925.00 28% 148,850226,850 405,100 50,765.00 33% 226,850405,100 457,600 109,587.50 35% 405,100457,600 . . . . . 127,962.50 39.6% 457,600

Heads of Households

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $12,950 $0.00 10% $012,950 49,400 1,295.00 15% 12,95049,400 127,550 6,762.50 25% 49,400

127,550 206,600 26,300.00 28% 127,550206,600 405,100 48,434.00 33% 206,600405,100 432,200 113,939.00 35% 405,100432,200 . . . . . 123,424.00 39.6% 432,200

Married Filing Separate Returns

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $9,075 $0.00 10% $09,075 36,900 907.50 15% 9,075

36,900 74,425 5,081.25 25% 36,900 74,425 113,425 14,462.50 28% 74,425

113,425 202,550 25,382.50 33% 113,425202,550 228,800 54,793.75 35% 202,550228,800 . . . . . 63,981.25 39.6% 228,800

Estates and Trusts

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $2,500 $0.00 15% $02,500 5,800 375.00 25% 2,5005,800 8,900 1,200.00 28% 5,800

8,900 12,150 2,068.00 33% 8,90012,150 . . . . . 3,140.50 39.6% 12,150

1

2013 Federal Individual Income Tax Rates

Single Individuals

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $8,925 $0.00 10% $08,925 36,250 892.50 15% 8,925

36,250 87,850 4,991.25 25% 36,25087,850 183,250 17,891.25 28% 87,850

183,250 398,350 44,603.25 33% 183,250398,350 400,000 115,586.25 35% 398,350400,000 . . . . . 116,163.75 39.6% 400,000

Joint Returns and Surviving Spouses

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $17,850 $0.00 10% $017,850 72,500 1,785.00 15% 17,85072,500 146,400 9,982.50 25% 72,500

146,400 223,050 28,457.50 28% 146,400223,050 398,350 49,919.50 33% 223,050398,350 450,000 107,768.50 35% 398,350450,000 . . . . . 125,846.00 39.6% 450,000

Heads of Households

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $12,750 $0.00 10% $012,750 48,600 1,275.00 15% 12,75048,600 125,450 6,652.50 25% 48,600

125,450 203,150 25,865.00 28% 125,450203,150 398,350 47,621.00 33% 203,150398,350 425,000 112,037.00 35% 398,350425,000 . . . . . 121,364.50 39.6% 425,000

Married Filing Separate Returns

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $8,925 $0.00 10% $08,925 36,250 892.50 15% 8,925

36,250 73,200 4,991.25 25% 36,25073,200 111,525 14,228.75 28% 73,200

111,525 199,175 24,959.75 33% 111,525199,175 225,000 53,884.25 35% 199,175225,000 . . . . . 62,923.00 39.6% 225,000

Estates and Trusts

Taxable IncomeTax +

% on Excess

Of the Amount OverOver But Not Over

$0 $2,450 $0.00 15% $02,450 5,700 367.50 25% 2,4505,700 8,750 1,180.00 28% 5,7008,750 11,950 2,034.00 33% 8,750

11,950 . . . . . 3,090.00 39.6% 11,950

2

Standard Deductions and Personal and Dependency Exemptions

2014 2013Standard deduction for single individuals $6,200 $6,100Standard deduction for joint returns or surviving spouses 12,400 12,200

Standard deduction for heads of households 9,100 8,950

Standard deduction for married individuals filing separate returns 6,200 6,100

Additional standard deduction for married taxpayers age 65 or older or blind* 1,200 1,200

Additional standard deduction for single taxpayers age 65 or older or blind* 1,550 1,500

Maximum standard deduction for individual claimed as a dependent on another taxpayer’s return (not to exceed amounts listed above)

1,000 (or 350 plus earned

income if greater)

1,000 (or 350 plus earned

income if greater)

Personal and dependency exemptions 3,950 3,900

Phaseout of itemized deductions and personal exemptions begins at . . .

$305,050 (J)$279,650 (H)$254,200 (S)

$152,525 (MS)

$300,000 (J)$275,000 (H)$250,000 (S)

$150,000 (MS) J=joint; H=head of household; S=single; MS=married filing separately * Taxpayers who are both age 65 or older and blind may claim twice the amount indicated as their additional standard

deduction.

Federal Alternative Minimum TaxIndividuals: An alternative minimum tax (AMT) is imposed on

items of income that would otherwise receive advantageous tax treat-ment. Taxpayers must pay the greater of (1) the AMT or (2) the regular income tax. Income subject to the AMT is the sum of AGI, modified to take into account adjustments and preference items, minus AMT item-ized deductions and minus an exemption amount based on filing status.

2014 2013Income threshold for 28% rate (AMT is 26% up to this amount)

$182,500 (J, S, H, ET)$91,250 (MS)

$179,500 (J, S, H, ET)$89,750 (MS)

Exemption amounts

$82,100 (J)$52,800 (S, H)$41,050 (MS)$23,500 (ET)

$80,800 (J)$51,900 (S, H)$40,400 (MS)$23,100 (ET)

Phaseout of AMT exemption amount begins at . . .

$156,500 (J)$117,300 (S, H)$78,250 (MS, ET)

$153,900 (J)$115,400 (S, H)$76,950 (MS, ET)

Kiddie tax exemption amount (child’s earned income plus)*

$7,250 $7,150

J=joint; S=single; H=head of household; MS=married filing separately; ET=estates and trusts * The kiddie tax exemption amount shall not exceed the exemption amount for a single taxpayer.

Corporations: A corporate AMT must be paid instead of the cor-poration’s regular tax if the AMT amount is higher. There is a $40,000 exemption amount. The exemption phases out at the rate of $.25 for each $1 of income subject to AMT that exceeds $150,000 and reduces to zero when AMTI reaches $310,000.

Small Corporations: Small corporations are exempt from the alterna-tive minimum tax. A corporation that has average annual gross receipts of $5 million or less for its first three-year period is deemed a small cor-poration. The exemption from AMT continues for every year in which gross receipts do not exceed $7.5 million annually for the prior three-year period. 3

Education Exclusions, Deductions, Credits

The following are education tax benefits available for students and their parents and the phaseout of these tax benefits for upper income tax-payers based on adjusted gross income (AGI) or modified AGI (MAGI).

Tax Benefit Basic Rule Phaseout Range 2014 Phaseout Range 2013

Savings bond income exclusion

Excluded if used to pay qualified higher education (Phaseout based on MAGI)

J: $113,950–$143,950O: $76,000–$91,000

J: $112,050–$142,050O: $74,700–$89,700

Coverdell Education Savings Accounts

$2,000 maximum annual contribution (Phaseout based on MAGI)

J: $190,000–$220,000*O: $95,000–$110,000*

J: $190,000–$220,000*O: $95,000–$110,000*

Deduction for qualified higher education expenses

Deductible “above the line” up to: $4,000 below phaseout range; $2,000 within phaseout range; and $0 above phaseout range (Phaseout based on AGI)

Expired J: $130,000–$160,000S: $65,000–$80,000

Educational loan interest deduction

Deductible up to $2,500 (Phaseout based on MAGI)

J: $130,000–$160,000O: $65,000–$80,000

J: $125,000–$155,000O: $60,000–$75,000

American Opportunity Tax Credit (formerly Hope Scholarship Credit; per student if no credit claimed for student for 2 prior years)

Credit on 100% of first $2,000 plus 25% of next $2,000 (Phaseout based on MAGI)

J: $160,000–$180,000O: $80,000–$90,000

J: $160,000–$180,000O: $80,000–$90,000

Lifetime Learning Credit (per taxpayer regardless of the number of students)

Credit on 20% of first $10,000 (Phaseout based on MAGI)

J: $108,000–$128,000O: $54,000–$64,000

J: $107,000–$127,000O: $53,000–$63,000

J=joint; O=filers other than joint filers; H=head of household; MS=married filing separately; S=single * This phaseout does not adjust annually for inflation.

Child Tax Credit

Tax Benefit Reduction Rule Income Limit

$1,000 credit for each dependent child under age 17*

Reduction of credit by $50 for every $1,000 that modified adjusted gross income exceeds income limit

$110,000 (J)$75,000 (S, H)$55,000 (MS)

H=head of household; J=joint; MS=married filing separately; S=single * Some low-income taxpayers who qualify for this credit may qualify for a refundable credit.

Kiddie Tax

Unearned income of a child under age 18 (and certain dependent children age 18 through 23) is taxed at the parent’s rate to the extent it exceeds $2,000 in 2014 (same as 2013 amount). The child’s income may be reported on the parent’s return if the child’s income in 2014 is more than $1,000 and less than $10,000.

Adoption Credit

Individuals may take a nonrefundable credit of up to $13,190 (2014) per child for qualified adoption expenses ($12,970 for 2013). The credit amount is phased out for modified adjusted gross income between $197,880 and $237,880 in 2014 ($194,580 and $234,580 in 2013).

4

Federal Tax on Capital Gains and Qualified Dividends

Rates for Individuals

Type of Gain Holding Period

Top Rate for Taxpayer in 39.6% Marginal Tax Bracket

Top Rate for Taxpayer in 25% through 35% Marginal Tax Brackets

Top Rate for Taxpayer in 10% or 15% Marginal Tax Bracket

Short-term12 months or less

Taxed at the same rate as ordinary income

Taxed at the same rate as ordinary income

Taxed at the same rate as ordinary income

Long-term More than 12 months 20% 15% 0%

Qualified dividends

60 days or more 20% 15% 0%

A 3.8% Net Investment Income tax is imposed on certain unearned investment income. The tax applies to the lesser of a person’s net invest-ment income or modified adjusted gross income that exceeds certain threshold amounts ($200,000 for single or head of household; $250,000 for married filing jointly or surviving spouse; and $125,000 for married filing separately). Investment income includes dividends, taxable inter-est, annuities, rents and royalties, capital gains, and passive income from partnerships and S corporations. It excludes distributions from IRAs and qualified plans, tax-exempt interest, and nontaxable veterans benefits.

Federal Tax on Corporate IncomeTaxable Corporate Income

Tax +% on Excess

Of the Amount OverOver But Not Over

$0 $50,000 $0 15% $0

50,000 75,000 7,500 25% 50,000

75,000 100,000 13,750 34% 75,000

100,000 335,000 22,250 39% 100,000

335,000 10,000,000 113,900 34% 335,000

10,000,000 15,000,000 3,400,000 35% 10,000,000

15,000,000 18,333,333 5,150,000 38% 15,000,000

18,333,333 . . . . . 0 35% 0

The deduction for a portion of a corporation’s income that is attribut-able to qualified U.S. production activities is 9% in 2014 and 2013.

The taxable income of certain personal services corporations is taxed at a flat rate of 35% regardless of the level of taxable income.

Health Savings Accounts2014 2013

Individual Family Individual Family

Minimum required health plan deductible $1,250 $2,500 $1,250 $2,500Maximum allowed health plan deductible 6,350 12,700 6,250 12,500Maximum allowed out-of-pocket limit 6,350 12,700 6,250 12,500Contribution limit 3,300 6,550 3,250 6,450Additional contribution for individuals age 55–64* 1,000 2,000* 1,000 2,000** If both spouses are in age range.

5

Business Deductions, Credits, and Fringe Benefits

2014 2013

Bonus depreciation Applies to qualifying new MACRS property

Generally expired (certain private aircraft and

long production period property may qualify until

2015)

50%

Section 179 expense election

First-year expense election up to limit $25,000 $500,000

Section 179 expense phaseout

Limit reduced by cost of property placed in service in excess of amount

$200,000 $2,000,000

Business mileage rate Deduction per mile driven for business use $0.56 $0.565

Charitable mileage rateDeduction (charitable) per mile driven for charitable purposes

$0.14 $0.14

Moving mileage rateDeduction per mile driven on a deductible move

$0.235 $0.24

Medical mileage rateDeduction (medical) per mile driven for medical purposes

$0.235 $0.24

Qualified transportation—transit passes or commuter vehicle

Employees may exclude indicated amount per month for benefits

$130 $245

Qualified transportation—parking

Employees may exclude indicated amount per month for benefits

$250 $245

Foreign earned income exclusion

Employees may exclude income for services in a foreign country up to indicated amount

$99,200 $97,600

Section 1244 stock loss deduction

Loss on small business stock (1244 stock) as ordinary loss up to limit

$100,000*(joint return)

$50,000*(others)

$100,000*(joint return)

$50,000*(others)

Rental real estate exception to passive activity loss rules

Up to $25,000 of passive losses attributable to real estate may be taken against non-passive income, phased out above indicated level of AGI

$100,000* $100,000*

* Not adjusted for inflation.

6

Benefit, Contribution, and Compensation Limits for Qualified Plans

The Internal Revenue Code (the Code) provides dollar limitations on benefits and contributions under qualified plans. The Code also lim-its the amount of compensation that can be taken into account when computing benefits and contributions. The 2014 and 2013 limits appear below. Limits on employee elective contributions are provided in a sepa-rate table.

Type of Limit 2014 2013

Annual benefit for defined benefit plans[I.R.C. §415(b)(1)(A)]

$210,000 $205,000

Annual limit on annual additions* to defined contribution plans[I.R.C. §415(c)(1)(A)]

52,000 51,000

Maximum annual compensation for each employee that can be taken into account for any plan year[I.R.C. §401(a)(17) and §408(k)(3)(C)]

260,000 255,000

Minimum compensation amount for SEP plan participation[I.R.C. §408(k)(2)(C)]

550 550

Compensation level for highly compensated employees (HCEs) other than 5% owners (for nondiscrimination rules) [I.R.C. §414(q)(1)(B)]

115,000 115,000

Compensation level for key employees other than 5% owners (top-heavy rules for vesting and minimum benefits [I.R.C. §416(i)])

170,000(officers)150,000

(1% owners)

165,000(officers)150,000

(1% owners)

* Annual additions to an employee’s account, which are defined as the total of employer contributions, employee con-tributions, and forfeitures, are limited to the lesser of the dollar amount indicated or 100% of compensation. This limit must be coordinated with a rule applicable to profit-sharing plans, SEPs, and stock bonus plans that limit contributions to 25% of compensation. This lower limitation does not apply to employee elective contributions or forfeitures, so annual additions may exceed 25% of compensation as long as employer contributions meet the 25% limit.

IRA and Employee Contribution LimitsThe following are limits for IRA contributions and employee elective

contributions to the indicated types of employer-sponsored retirement plans.

Year IRAs401(k), 403(b), and 457 Plans* SIMPLE Plans

2014 $5,500 $17,500 $12,000

2013 5,500 17,500 12,000

*Existing salary reduction SEPs (SARSEPs) are also covered by this limit.

Catch-Up Contribution LimitsIndividuals who are age 50 or older may increase their contributions

over the regular limits shown in the IRA and Employee Contribution Limits table by the following catch-up amounts.

Year IRAs401(k), 403(b), and 457 Plans SIMPLE Plans

2014 $1,000 $5,500 $2,500

2013 1,000 5,500 2,500

7

IRA Phaseouts2014 2013

IRA deduction is phased out (for active participants in an employer plan) for adjusted gross incomes between . . .

$60,000–$70,000 (S, H)$96,000–$116,000 (J)$0–$10,000 (MS)

$59,000–$69,000 (S, H)$95,000–$115,000 (J)$0–$10,000 (MS)

IRA deduction is phased out (spouse is active participant in an employer plan but individual is not) for adjusted gross incomes between . . .

$181,000–$191,000 $178,000–$188,000

Roth IRA contribution limit is phased out for adjusted gross incomes between . . .

$114,000–$129,000 (S, H)$181,000–$191,000 (J)$0–$10,000 (MS)

$112,000–$127,000 (S, H)$178,000–$188,000 (J)$0–$10,000 (MS)

Conversion from traditional to Roth IRA is allowed if modified AGI does not exceed . . .

No income limit for 2014

No income limit for 2013

H=head of household; J=joint; MS=married filing separately; S=single

Required Minimum DistributionsIn most cases, the required minimum distribution that must be made

from most retirement plan and IRA accounts after age 701/2 is determined by dividing the account value at the end of the previous year by the divisor found for the account owner’s age on the Uniform Distribution Table. An account owner with a beneficiary-spouse more than 10 years younger may use an IRS joint-life table to find the divisor, which in all cases is larger than the divisor shown here, resulting in smaller required distributions.

Age Divisor Age Divisor

70 27.4 93 9.6

71 26.5 94 9.1

72 25.6 95 8.6

73 24.7 96 8.1

74 23.8 97 7.6

75 22.9 98 7.1

76 22.0 99 6.7

77 21.2 100 6.3

78 20.3 101 5.9

79 19.5 102 5.5

80 18.7 103 5.2

81 17.9 104 4.9

82 17.1 105 4.5

83 16.3 106 4.2

84 15.5 107 3.9

85 14.8 108 3.7

86 14.1 109 3.4

87 13.4 110 3.1

88 12.7 111 2.9

89 12.0 112 2.6

90 11.4 113 2.4

91 10.8 114 2.1

92 10.2 115 and after 1.9

8

Comparing IRA OptionsQuestion Traditional IRA Roth IRA

Are there income limits on the ability to make nondeductible contributions?

No. Yes. Phaseouts for single filers: $114,000–$129,000 for 2014 ($112,000–$127,000 for 2013); for joint filers: $181,000–$191,000 for 2014 ($178,000–$188,000 for 2013).

Is there an annual contribution limit?

Yes, $5,500* per person to all IRAs for 2014 and 2013.

Yes, $5,500* per person to all IRAs for 2014 and 2013.

Are contributions deductible?

Yes, for nonparticipants in an employer plan. For others, contributions may be deductible depending on income level (see IRA Phaseouts on page 8).

No. All contributions are nondeductible, after-tax contributions.

How are withdrawals taxed after age 591/2?

Withdrawals are subject to tax. Exception: pro rata share of nondeductible contributions.

Withdrawals are tax free if account is held 5 years. Contributions are withdrawn tax free at any time.

How are withdrawals taxed before age 591/2?

Withdrawals are subject to tax. A 10% penalty is added except in the case of:• death;• disability;• life annuity;• “first” home purchase

(up to $10,000);• educational expenses;• medical expenses; or• health insurance for

unemployed.

Contributions are withdrawn tax free. Withdrawals of earnings from accounts held 5 years are tax free in the case of:• death;• disability; or• “first” home purchase

(up to $10,000).Withdrawals of earnings are subject to tax but no penalty in the case of:• life annuity;• educational expenses;• medical expenses; or• health insurance for unemployed.

All other withdrawals of earnings are subject to tax plus 10% penalty.

* May be increased by $1,000 for individuals age 50 or over.

Affordable Care Act Penalties and Credits

Individuals: Beginning in 2014, taxpayers who are not covered by health insurance that meets certain minimum requirements may have to pay a tax penalty equal to the greater of $95 per person ($47.50 per child under age 18; maximum penalty per family under this method is $285) or 1% of their annual taxable income. The penalty is prorated for partial-year coverage. Individuals who buy coverage on a government exchange are eligible for a credit to help offset their premium costs if their income falls below 400% of the federal poverty line. For 2014, those income limits are $45,960 for an individual, $62,040 for a family of two, and $94,200 for a family of four.

Businesses: Tax penalties scheduled to go into effect in 2014 for employers who do not provide qualifying health insurance coverage have been delayed until 2015 for employers with 100 or more employees (2% of employers—according to the IRS, an “overwhelming majority” of these employers already comply) and until 2016 for employers with 50 to 99 employees (2% of employers). Employers who have fewer than 50 employees (96% of employers) are not required to provide qualifying health insurance coverage or complete any forms in any year. Employers who have fewer than 25 employees with average annual wages of less than $50,000 and who pay at least 50% of the premium for qualifying health insurance coverage may qualify for a tax credit worth up to 50% of their premium costs (up to 35% for tax-exempt employers).

10

Qualified Long-Term Care Insurance Premiums

Premiums paid for qualified long-term care insurance are deductible as medical expenses, subject to the in-excess-of-10%-of-AGI limitation that applies to medical expenses generally (for individuals age 65 and older, an in-excess-of-7.5%-of-AGI limitation continues to apply through 2016). Deductions for qualified long-term care insurance premiums are subject to additional dollar amount limitations that vary depending on the insured’s age. The maximum deductible amounts for 2014 and 2013 appear below.

Age 2014 Maximum 2013 Maximum

40 or less $370 $360more than 40 through 50 700 680more than 50 through 60 1,400 1,360more than 60 through 70 3,720 3,640older than 70 4,660 4,550

Federal Estate Tax Formula 2014 and 2013

A. Gross Estate $B. Subtract: Claims Against Estate

Administration ExpensesFuneral ExpensesMarital DeductionCharitable DeductionsState Death Tax DeductionTotal Deductions –

C. Taxable Estate $D. Add: All Post-1976 Adjusted Taxable Gifts +E. Adjusted Taxable Estate $F. Calculate Tentative Tax on “E”1 $G. Subtract: Total Gift Taxes Payable2 on Post-1976 Gifts –H. Gross Estate Tax Payable Before Credits $I. Subtract: Estate Tax Credit for 2014 ($2,045,800 in 2013) $2,081,800

Credit for Foreign Death TaxesCredit for Tax on Prior TransfersTotal Credits –

J. Net Estate Tax $K. Add: Generation-Skipping Transfer Tax +L. Federal Transfer (Estate and Generation-Skipping) Tax Payable $

1 Calculate tentative tax using the Federal Gift and Estate Tax table on the next panel.2 Enter amount that would have been payable if changes made by the 2010 tax legislation had been in effect at the time of the gift.

Federal Gift Tax Formula 2014 and 2013

A. Aggregate of all prior and present taxable gifts $B. Tentative gift tax on “A” (from current tax table) $C. Aggregate of all prior (only) taxable gifts

D. Tentative gift tax on “C” (from current tax table) –E. Tentative gift tax on present gift (“B” less “D”) $F. Gift tax credit for 2014 ($2,045,800 in 2013) $2,081,800G. Aggregate gift tax credit taken for prior

post-1976 gifts (but not more than “C”) –H. Gift tax credit available for current gift

(“F” less “G” but not more than “E”) –

I. Gift tax payable for current gift (“E” less “H”) $

11

Federal Gift and Estate Tax Amounts

Rule 2014 2013

Annual gift tax exclusion per recipient $14,000 $14,000Annual gift tax exclusion for gifts to noncitizen spouse 145,000 143,000Estate tax installment election: Amount subject to 2% interest on tax due to closely held business; above that 45% of applicable federal rate

1,450,000 1,430,000

Special use valuation: Limit on estate reduction using this technique (value of actual use of real estate rather than highest and best use)

1,090,000 1,070,000

Federal Gift and Estate Tax 2014 and 2013*

Taxable Gift or Estate Tentative Tax

Gift and Estate Exclusion Amount/CreditFrom To TaxRate on Excess

$0 $10,000 $0 18%10,000 20,000 1,800 20%20,000 40,000 3,800 22%

CreditExclusion Amount40,000 60,000 8,200 24%

60,000 80,000 13,000 26%2014 $2,081,800 $5,340,000

80,000 100,000 18,200 28%100,000 150,000 23,800 30%

2013 $2,045,800 $5,250,000150,000 250,000 38,800 32%250,000 500,000 70,800 34%500,000 750,000 155,800 37%750,000 1,000,000 248,300 39%

1,000,000 . . . . . 345,800 40%

* In addition to the federal estate and gift taxes, these rates apply to the federal generation-skipping transfer tax (GSTT) in 2014 and 2013.

Medicare Premium and Cost-Sharing Amounts2014 2013

Part A

Premium per month (if not eligible through payroll tax) $426 $441Hospital and mental health inpatient deductible per benefit period $1,216 $1,184

Hospital inpatient coinsurance per day (Days 61–90) $304 $296Hospital inpatient coinsurance per lifetime reserve day (Days 91 and after; up to 60 days over lifetime) $608 $592

Skilled nursing facility coinsurance per day (Days 21–100) $152 $148Home health care coinsurance for durable medical equipment 20% 20%

Hospice prescription drug co-pay $5 $5Hospice respite care coinsurance 5% 5%

Part B

Base premium per month $104.90 $104.90

Income threshold for additional premium $85,000 (S, MS)$170,000 (J)

$85,000 (S, MS)$170,000 (J)

Deductible per year $147 $147Coinsurance 20% 20%

Part D

Base premium (actual premiums vary by plan) $32.42 $31.17

Income threshold for additional premium $85,000 (S, MS)$170,000 (J)

$85,000 (S, MS)$170,000 (J)

Deductible $310 $325Cost threshold for coverage gap (combined total spent by enrollee and plan) $2,850 $2,970

Enrollee’s cost per prescription during coverage gap after discounts are applied

47.5% (brand name)72% (generic)

47.5% (brand name)79% (generic)

Cost threshold for catastrophic coverage (combined total spent by enrollee and plan)

$6,455 ($4,550 out of enrollee’s pocket)

$6,733.75 ($4,750 out of enrollee’s pocket)

Minimum cost-sharing during catastrophic coverage (enrollee pays 5% coinsurance if greater than co-pay shown)

$6.35 (brand name)$2.55 (generic)

$6.60 (brand name)$2.65 (generic)

S=single; MS=married filing separately; J=joint

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Social Security Tax

The tax supporting Old-Age, Survivors, and Disability Insurance (OASDI) and Medicare (Hospital Insurance – HI) is collected for employees under the Federal Insurance Contributions Act (FICA) and for self-employed individuals under the Self-Employment Contributions Act (SECA). The total amount is the same, but under FICA the tax is split between employer and employee. The tax for OASDI applies only to earned income up to the wage base. No limit applies in the case of the tax for HI. An additional 0.9% HI tax applies to earnings in excess of certain income thresholds in 2014 and 2013.*

OASDI HICombined Tax

RateTax Rate

Wage Base

Tax Rate

Wage Base

Employee

Employee: 6.2% (2014 and 2013)Employer: 6.2% (2014 and 2013)

$117,000 (2014) $113,700 (2013)

1.45%* (employee)

1.45% (employer)No limit 15.3% (2014

and 2013)

Self-employed

12.4% (2014 and 2013)

$117,000 (2014)$113,700 (2013) 2.9%* No limit 15.3% (2014

and 2013)

* The threshold levels for the additional 0.9% HI tax are $250,000 for married taxpayers filing jointly, $125,000 for mar-ried taxpayers filing separately, and $200,000 for all other taxpayers.

Social Security Eligibility Figures2014 2013

Quarters of coverage

An individual gets a quarter of coverage (out of 40 required to be fully insured) after earning . . .

$1,200 $1,160

Reduction of retirement benefits before FRA*

One dollar of benefits is withheld for $2 in earnings above . . .

$15,480/yr.($1,290/mo.)

$15,120/yr.($1,260/mo.)

Reduction of retirement benefits in year FRA attained

One dollar of benefits is withheld for $3 in earnings above . . .

$41,400/yr.($3,450/mo.)

$40,080/yr.($3,340/mo.)

SSI** federal payment standard

Individual $721/mo. $710/mo.

Couple $1,082/mo. $1,066/mo.

SSI resources limits

Individual $2,000 $2,000Couple $3,000 $3,000

SSI student exclusion limits

Monthly $1,750 $1,730Yearly $7,060 $6,960

Disability thresholds

Substantial gainful activity (non-blind) $1,070/mo. $1,040/mo.

Substantial gainful activity (blind) $1,800/mo. $1,740/mo.

Trial work period $770/mo. $750/mo.

* FRA (full retirement age) is age 66 for retirements occurring in 2014 and 2013 (applies to birth years 1943–1954).

** SSI (Supplemental Security Income) is benefits for disabled adults and children with limited income and resources, and for people age 65 and older without disabilities who meet the financial limits.

Social Security OASDI Benefits

2014 2013Maximum benefit (per month) Worker retiring at FRA $2,642 $2,533Estimated average retirement benefit (per month)*

Retired worker $1,275 $1,240Retired worker, spouse $2,080 $2,014

Estimated average survivor benefit (per month)*

Surviving spouse, two children $2,583 $2,549Aged surviving spouse $1,225 $1,194

Estimated average disability benefit (per month)*

Disabled worker $1,131 $1,113Disabled worker, spouse, child/ren $1,914 $1,887

Cost-of-living adjustment (COLA) 1.5% 1.7%

* Amounts are shown before that year’s COLA is applied.

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Results of $1,000 Invested Annually at Various Annual Interest Rates

Over Various Periods of Time(Investment Made at Beginning of Each Year)

Years 4% 6% 8% 10%1 $1,040 $1,060 $1,080 $1,1002 2,122 2,184 2,246 2,3103 3,246 3,375 3,506 3,6414 4,416 4,637 4,867 5,1055 5,633 5,975 6,336 6,7166 6,898 7,394 7,923 8,4877 8,214 8,897 9,637 10,4368 9,583 10,491 11,488 12,5799 11,006 12,181 13,487 14,937

10 12,486 13,972 15,645 17,53111 14,026 15,870 17,977 20,38412 15,627 17,882 20,495 23,52313 17,292 20,015 23,215 26,97514 19,024 22,276 28,152 30,77215 20,825 24,673 29,324 34,95016 22,698 27,213 32,750 39,54517 24,645 29,906 36,450 44,59918 26,671 32,760 40,446 50,15919 28,778 35,786 44,762 56,27520 30,969 38,993 49,423 63,00221 33,248 42,392 54,457 70,40322 35,618 45,996 59,893 78,54323 38,083 49,816 65,765 87,49724 40,646 53,865 72,106 97,34725 43,312 58,156 78,954 108,18226 46,084 62,706 86,351 120,10027 48,968 67,528 94,339 133,21028 51,966 72,640 102,966 147,63129 55,085 78,058 112,283 163,49430 58,328 83,802 122,346 180,94335 76,598 118,121 186,102 298,12740 98,827 164,048 279,781 486,85245 125,871 225,508 417,726 790,79550 158,774 307,756 619,672 1,280,299

United States Life Tables, 2009

From the National Vital Statistics Reports, Centers for Disease Control and Prevention (January 6, 2014).

Age Male Female Age Male Female Age Male Female Age Male Female

0–1 76.0 80.9 26–27 51.3 55.8 52–53 27.7 31.3 78–79 9.3 11.01–2 75.5 80.4 27–28 50.4 54.8 53–54 26.9 30.5 79–80 8.7 10.32–3 74.5 79.4 28–29 49.4 53.8 54–55 26.1 29.6 80–81 8.2 9.73–4 73.6 78.4 29–30 48.5 52.9 55–56 25.3 28.7 81–82 7.7 9.24–5 72.6 77.4 30–31 47.6 51.9 56–57 24.5 27.8 82–83 7.2 8.65–6 71.6 76.4 31–32 46.6 50.9 57–58 23.7 27.0 83–84 6.7 8.06–7 70.6 75.4 32–33 45.7 50.0 58–59 22.9 26.1 84–85 6.3 7.57–8 69.6 74.4 33–34 44.8 49.0 59–60 22.1 25.3 85–86 5.9 7.08–9 68.6 73.5 34–35 43.8 48.0 60–61 21.3 24.4 86–87 5.5 6.59–10 67.6 72.5 35–36 42.9 47.1 61–62 20.6 23.6 87–88 5.1 6.110–11 66.6 71.5 36–37 42.0 46.1 62–63 19.8 22.8 88–89 4.7 5.711–12 65.6 70.5 37–38 41.0 45.2 63–64 19.1 21.9 89–90 4.4 5.312–13 64.6 69.5 38–39 40.1 44.2 64–65 18.3 21.1 90–91 4.1 4.913–14 63.6 68.5 39–40 39.2 43.3 65–66 17.6 20.3 91–92 3.8 4.514–15 62.7 67.5 40–41 38.3 42.3 66–67 16.9 19.5 92–93 3.6 4.215–16 61.7 66.5 41–42 37.4 41.4 67–68 16.2 18.8 93–94 3.3 3.916–17 60.7 65.5 42–43 36.4 40.4 68–69 15.5 18.0 94–95 3.1 3.617–18 59.7 64.5 43–44 35.5 39.5 69–70 14.8 17.2 95–96 2.9 3.418–19 58.8 63.6 44–45 34.6 38.6 70–71 14.2 16.5 96–97 2.7 3.119–20 57.8 62.6 45–46 33.7 37.7 71–72 13.5 15.7 97–98 2.5 2.920–21 56.9 61.6 46–47 32.9 36.7 72–73 12.9 15.0 98–99 2.4 2.721–22 56.0 60.6 47–48 32.0 35.8 73–74 12.2 14.3 99–100 2.2 2.522–23 55.0 59.7 48–49 31.1 34.9 74–75 11.6 13.6 100+ 2.1 2.423–24 54.1 58.7 49–50 30.2 34.0 75–76 11.0 12.924–25 53.2 57.7 50–51 29.4 33.1 76–77 10.4 12.325–26 52.2 56.8 51–52 28.5 32.2 77–78 9.8 11.6

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Inflation Rate History(Based on the Consumer Price Index)*

YearAnnual Inflation Rate (%)

YearAnnual Inflation Rate (%)

YearAnnual Inflation Rate (%)

Period Ending

Total Inflation

for Period (%)

Average Annual

Inflation for Period (%)

1961 1.4 1979 12.2 1997 2.2 (10-year period)1962 1.3 1980 12.6 1998 1.5 1970 32.4 2.81963 1.0 1981 11.0 1999 2.6 1980 114.3 7.91964 1.3 1982 5.0 2000 3.5 1990 58.0 4.71965 1.6 1983 2.9 2001 2.6 2000 30.9 2.71966 3.5 1984 4.3 2002 1.5 2010 25.8 2.31967 2.8 1985 3.1 2003 2.3 (20-year period)1968 4.5 1986 1.8 2004 2.5 1980 183.8 5.41969 5.7 1987 4.4 2005 4.7 1990 238.5 6.31970 5.7 1988 4.2 2006 2.1 2000 106.8 3.71971 4.1 1989 4.3 2007 2.8 2010 64.6 2.51972 3.2 1990 6.2 2008 4.9 (30-year period)1973 7.4 1991 3.4 2009 –1.3 1990 348.3 5.11974 11.9 1992 3.0 2010 1.1 2000 343.1 5.11975 7.9 1993 2.7 2011 3.9 2010 160.0 3.21976 5.5 1994 3.0 2012 2.0 (40-year period)1977 6.6 1995 2.5 2013 1.2 2000 486.8 4.51978 8.3 1996 3.0 2010 457.2 4.4

* The consumer price index used is the CPI-U for all urban consumers as reported by the National Bureau Labor Statistics.The figure for the most recent year includes the period September 2012 to September 2013.

IRS Table 2001: One-Year Term Premiums for $1,000

of Life Insurance Protection

The IRS currently uses Table 2001 to value the economic benefit provided to an employee when life insurance is provided by an employer. The premium listed represents the assumed cost of $1,000 of term insurance.

Age Premium Age Premium Age Premium

31 $.90 51 $2.52 71 $22.7232 .93 52 2.81 72 25.0733 .96 53 3.20 73 27.5734 .98 54 3.65 74 30.1835 .99 55 4.15 75 33.0536 1.01 56 4.68 76 36.3337 1.04 57 5.20 77 40.1738 1.06 58 5.66 78 44.3339 1.07 59 6.06 79 49.2340 1.10 60 6.51 80 54.5641 1.13 61 7.11 81 60.5142 1.20 62 7.96 82 66.7443 1.29 63 9.08 83 73.0744 1.40 64 10.41 84 80.3545 1.53 65 11.90 85 88.7646 1.67 66 13.51 86 99.1647 1.83 67 15.20 87 110.4048 1.98 68 16.92 88 121.8549 2.13 69 18.70 89 133.4050 2.30 70 20.62 90 144.30

15