Standard Deductions- 2013 Tax Year
Head of Household: $8,950
Married Filing Joint: $12,200
Married Filing Separately: $6,100
Qualifying Widow/Widower: $12,200
Additional Amount if Blind: $1,200 (for married filing joint, married filing separately, or qualifying widow); $1,500 (for single and head of household)
Additional Amount if age 65 or older: $1,200 (for married filing joint, married filing separately, or qualifying widow); $1,500 (for single and head of household).
More information about the standard deduction.
* Dependents must calculate their standard deduction using an IRS Worksheet.
Per taxpayer and dependent: $3,900
Retirement Plan Limits
You can save for retirement up to the maximum dollar limit. Maximum contributions vary by the type of retirement plan:
Traditional or Roth IRA: $5,500 ($6,500 if age 50 or older)
SEP IRA: $51,000
SIMPLE IRA: $12,000 ($14,500 if age 50 or older)
401(k) plan: $17,500 ($23,000 if age 50 or older)
403(b) plan: $17,500 ($23,000 if age 50 or older)
457 plan: $17,500 ($23,000 if age 50 or older)
Defined Contribution Pension: $51,000
Defined Benefit Pension: $205,000
More information about retirement planning
*If you fund both a traditional and Roth IRA, your total contribution to cannot exceed $5,500 combined (or $6,500 if age 50 or older).
**SEP IRA contributions are calculated on an IRS worksheet. Your maximum contribution may be less than $51,000.
Standard Mileage Rate for 2013 and 2014
You can deduct the cost of driving a vehicle for business-use, for traveling to a doctor, when relocating for a new job, or when you are engaged in charitable activities. The 2013 and 2014 standard rates for mileage are:
• 56.5 cents per mile for business in 2013, 56 cents in 2014
• 24 cents per mile for medical or moving purposes in 2013, and 23.5 cents in 2014
• 14 cents per mile for charitable service for both 2013 and 2014.