For 2013, the standard deduction for a single individual is
$6,100 and for a married couple is $12,200. A person will benefit by itemizing
once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes,
real estate taxes, mortgage interest, charitable contributions, and non-reimbursed employee business expenses.
- For 2013, the personal
exemption is $3,900. Individuals will claim a personal deduction for themselves,
their spouse, and their dependents.
- The maximum earnings subject to
social security taxes has been increased to $113,700 in 2013.
- The standard mileage
rate has been decreased to $.56 per mile in 2014 from $.565 per mile during 2013.
- The maximum annual
contribution to a 401(k) plan or a 403(b) plan has been increased to $17,500 for
2013 from $17,000 in 2012. And if you'll be 50 or older by December 31,
2013, you can contribute an extra $5,500 into your 401(k) or 403(b) account this year.