Estate tax. United States taxpayers will have the freedom to pass on an additional $90,000 tax-free starting January 1, 2014. Adjusted for inflation, the new federal estate, gift, and Generation-Skipping Transfer (GST) tax exclusion amount will be $5,340,000. (For decedents who pass away on or before December 31, 2013, the $5,250,000 exclusion limit still applies.)
Gift Tax Annual Exclusions. The annual gift exclusion for gifts to non-citizen spouses increases from $143,000 to $145,000; otherwise it remains at $14,000.
Roth IRA limits. Roth Individual Retirement Account (IRA) contribution income limits have increased once again. In 2014, the income limits for contributions are $181,000 for married joint filers and $114,000 for single filers. (Up $3,000 and $2,000, respectively.) These limits will continue to adjust with inflation.
Foreign Earned Income Exclusion. The Foreign Earned Income Exclusion increases to $99,200 in 2014 (up from $97,600). (Non-domestic finances are under high scrutiny right now. Learn more about new legislation affecting accounts in the British Virgin Islands as well as new tax terms for Swiss accounts.) US citizens who receive foreign gifts in excess of $15,358 from foreign corporations or partnerships in 2014 must file a return. The same standard applies to US taxpayers who receive gifts or inheritances valued over $100,000 from foreign estates or nonresident alien individuals. With special reporting requirements and new government regulations, individuals managing or receiving foreign funds should review these matters with an attorney familiar with the complex tax rules and reporting requirements.