Posts Tagged "tax-free gifts"

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Posted on Jan 15, 2013

*January 15 is the due date for the fourth and final installment of 2012 estimated taxes for individuals. *Individuals need not make the January 15 quarterly estimate for 2012 if they file their 2012 tax return and pay taxes due by January 31. *January 31 is the deadline for employers to provide 2012 W-2s to employees. *Payers must furnish payees with Form 1099s by January 31. The deadline for providing Form 1099-B to customers is February 15. *January 31 is the deadline for employers to file annual federal unemployment tax returns. *The annual limit on tax-free gifts for 2013 increases to $14,000 per donee ($28,000 if your spouse joins in the gift). *The IRA contribution limit for 2013 increases to $5,500 ($6,500 for those 50 and older). *The amount you can put in your 401(k) increases to $17,500 this year ($23,000 for those 50 and older). *The maximum salary deferral for SIMPLEs increases this year to $12,000 ($14,500 for those 50 and older). *The threshold for unearned income a child can have in 2013 without having the kiddie tax apply increases to...

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There’s still time to make 2010 tax-free gifts

Posted on Dec 14, 2010

The tax code allows you to give away up to $13,000 each year to as many people as you want, without triggering gift tax. If you and your spouse “split” your gifts, you can double this $13,000 annual gift-tax exclusion and give $26,000 per recipient. If you’re thinking of sharing your wealth, here are some important gift-giving considerations. * All gifts during the year, including birthday and holiday presents, count toward the $13,000 (or $26,000) annual gift tax exclusion. For example, say you give a $500 birthday present to your grandchild. You may give another $12,500 to that grandchild during the year without triggering the need for a gift tax return. * A gift made by check isn’t complete until the recipient actually deposits or cashes the check. Plan accordingly when making year-end gifts, especially if you want such gifts to be counted toward this year’s gift tax exclusion. * For a gift to be valid, you must part with ownership. Pay special attention to gifts of stock in the family business or gifts of your personal residence. * Three types of gifts are exempt from the $13,000 limit. You can make unlimited gifts for tuition expenses or medical expenses on behalf of any person, provided you make the payments directly to the educational institution or health care provider. You can also make unlimited gifts to your spouse. If you would like to discuss the benefits of making tax-free gifts, please contact our...

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