2014

2018 vs 2017 Cost of Living Adjustment (COLA), Social Security and Medicare Tax Rates

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[2018 COLA Increase] The Social Security Administration (SSA) has announced a relatively large 2% Cost of Living Adjustment (COLA) for 2018. Benefits like Social Security or Supplemental Security income, that are tied to COLA will reflect the 2% increase in January 2018. The increase is equivalent to about $27 more a month or $329 a year […]

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2017 Military Pay Charts Reflecting Latest Raise – Updated Monthly Basic Pay Tables

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[2017 update] Armed serviced members in 2017 will at minimum see a 2.1 percent increase in base pay following broad Congressional approval of the Defense Authorization bill. Both the House and Senate passed the bill that will be approved by the President. The 2017 raise is 0.5% higher than the original 1.6% approved by the House earlier in the […]

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2017 Pay Raise Approved for Federal Employees on GS Pay Scale

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In a surprising move President Obama has reversed his previous August 2016 pay rise proposal of 1.6%, made up of a 1% across the board plus 0.6% locality pay adjustment (see prior update below). In his latest executive order he is proposing a “revised” alternative 2017 total pay raise of 2.1%. This is still made up of a […]

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2017 vs. 2018 Savers Tax Credit and Income Limits to Help Workers Save for Retirement

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[Updated with 2018 details per the IRS] The savers credit helps middle to lower income earners save for retirement by providing an offset to retirement plan (401k and IRA) contributions. But a lot of people don’t know about or take advantage of this little known credit, officially referred to by the IRS as the retirement savings contributions […]

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2015 Tax Brackets and Other Federal Taxation Updates

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Given the low inflation environment over the last year, the 2015 IRS Tax Brackets, standard deductions and personal exemptions have only seen a moderate increase over 2014 levels. Federal income tax brackets and related tax items, under the tax code, provide for mandatory annual adjustments based on inflation. This is to prevent the phenomenon known as bracket […]

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2014 vs 2013 AMT Exemption and Thresholds

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Following enactment of the American Tax Relief Act (ATRA) in 2012, the AMT patch legislation that Congress had to pass every year to ensure more people were not snagged by the Alternative Minimum tax (AMT), is now no longer required. Instead the AMT exemption and associated thresholds based on filing status are now tied (or […]

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2014 Earned Income Tax credit (EITC)

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[2014 EIC Update] The IRS has released 2014 Earned Income Tax credit (EITC) details which are shown in the table below. There have been some minor increases to the EITC amount and qualifying limits following inflation adjustments. How to read the table above. The “earned income amount” (line 1) is the amount of income (minimum limit) at or […]

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2014 IRS Tax Brackets and Rates With Standard Deduction and Personal Exemption Updates

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Below are the 2014 IRS federal tax brackets based on annual inflation adjustments. Given the low inflation environment there were only moderate increases in tax brackets, standard deductions and to the personal exemption. The main changes for the 2014 tax year were: Marginal tax rates remained the same as last year with 39.6% being the highest marginal […]

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2014 401K and IRA Contribution and Income Limits

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The IRS has released updated 2014 limits for defined contribution (or pension) plans such as 401(k) and IRAs. This was delayed from the usual mid-October release due to the government shutdown. The annual limits are tied to Cost of Living Adjustment (COLA) figures and based on these the updated 2014 limits and contribution amounts are shown below […]

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Short-Term Budget Deal Reached That Includes Back Pay Plus 1% 2014 Pay Raise for Government Workers and Pay Freeze For Congress

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A short term budget deal has been reached and the government shutdown is over. The debt ceiling has also been raised which will allow the nation to pay its bills and service new debt/payment obligations. But the deal legislation includes a few interesting provisions which are summarized below The Senate brokered budget deal would finance […]

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