Tax Law Changes

IRA Contributions $5,500 - IRA Catch-up Contributions $1,000 - Defined Benefit Plan Benefit $205,000 - Defined Contribution Plan Allocation $51,000 - 401(K) or 403(b)
Salary reduction deferrals $17,500 - 401(k) or 403(b) Catch-up Contributions $5,500 - SIMPLE plans $12,000 - SIMPLE plan Catch-up Contributions $2,500 -
Salary for pension plan $255,000 - Salary for highly compensated employee $115,000 - Salary for Key employee $165,000 - Salary for SEP eligibility $550
Social Security Taxable Wage base $113,700 -

The limit on employee elective deferrals is $17,500 for 2013. ($17,000 for 2012) and $23,000 if age 50 or older ($22,500 in 2012)
The catch up contribution limit for employees 50 and over remains unchanged at $5,500.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.

On March 1, 2013, the Treasury department will stop mailing paper checks to Social Security recipients. Retirees will be required to choose to have their Social Security payments either directly deposited into a bank or credit union account or loaded onto a prepaid Direct Express Debit MasterCard.
New Social Security beneficiaries have been required to choose an electronic payment option since May 2011, and approximately 93 % of Social Security and Supplemental Security Income payments are already being made electronically.

An eligible educator's above the line deduction for up to $250 in qualified classroom expenses has been extended from 2011 to 2012 and 2013.

An eligible educator's above the line deduction for up to $250 in qualified classroom expenses has been extended from 2011 to 2012 and 2013.

The following tax forms will be accepted by the IRS in late February or into March after updating forms and completing programming and testing of its processing systems. A specific date will be announced by the IRS in the near future.
•Form 3800 General Business Credit •Form 4136 Credit for Federal Tax Paid on Fuels •Form 4562 Depreciation and Amortization (Including Information on Listed Property) •Form 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands •Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations •Form 5695 Residential Energy Credits •Form 5735 American Samoa Economic Development Credit •Form 5884 Work Opportunity Credit •Form 6478 Credit for Alcohol Used as Fuel •Form 6765 Credit for Increasing Research Activities •Form 8396 Mortgage Interest Credit •Form 8582 Passive Activity Loss Limitations •Form 8820 Orphan Drug Credit •Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit •Form 8839 Qualified Adoption Expenses •Form 8844 Empowerment Zone and Renewal Community Employment Credit •Form 8845 Indian Employment Credit •Form 8859 District of Columbia First-Time Homebuyer Credit •Form 8864 Biodiesel and Renewable Diesel Fuels Credit •Form 8874 New Markets Credits •Form 8900 Qualified Railroad Track Maintenance Credit •Form 8903 Domestic Production Activities Deduction •Form 8908 Energy Efficient Home Credit •Form 8909 Energy Efficient Appliance Credit •Form 8910 Alternative Motor Vehicle Credit •Form 8911 Alternative Fuel Vehicle Refueling Property Credit •Form 8912 Credit to Holders of Tax Credit Bonds •Form 8923 Mine Rescue Team Training Credit •Form 8932 Credit for Employer Differential Wage Payments •Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

The standard deduction rises to $6,100 ($12,200 for married couples filing jointly), up from $5,950 ($11,900 for married couples filing jointly) for tax year 2012.

The personal exemption amount rises to $3,900, up from the 2012 exemption of $3,800.
Beginning in 2013, the exemption is subject to a phase-out that begins with adjusted gross incomes of $250,000 ($300,000 for married couples filing jointly). It phases out completely at $372,500 ($422,500 for married couples filing jointly.)

The (AMTE) Alternative Minimum Tax Exemption amount is $53,900 ($83,800, for married couples filing jointly),