2014 Tax Law Changes You Should Know About

2014 Tax Law Changes You Should Know About -

You probably know that all the major life events that took place in the past year - such as marriage or a new job - could affect your tax return. But in 2014 the tax law changes made by the IRS that affect taxpayers in general? Each year, the IRS collects all the information you might want to know about filing your taxes together in a document called Publication 17, which is available on their website in HTML and PDF format. Among the great depths of the information found in this publication is a section that details what is new for this year, so you're not caught off guard during the time of tax preparation.

While 2014 tax law changes should all know?

1. The same-sex married must file as married. If you and your spouse even married sex legally in a state or a foreign country that recognizes same-sex marriage, then you are required to file as "separately married filing" or "married filing jointly" this year. Live currently in a foreign state or country that does not recognize your marriage? does not matter. what matters is what the laws say you were married.
2. deductions medical and dental expenses have changed. from 1 January 2013, you can only deduct the portion of your medical and dental expenses that exceed 10% of your adjusted gross income. If you or your spouse is 65 or older, the percentage changes to 7.5%.
3. the standard deduction has increased. This is true for those who itemize their deductions on Schedule a (form 1040) and depends on your filing status . the amount increased to $ 12,200 from $ 11.900 for married couples filing jointly, $ 6.100 to $ 5,950 for single filers and married couples filing separately, and $ 8,950 to $ 8,700 for heads of household.
4. The amount you can deduct exemptions increased to $ 3.900. This is from $ 3,800 in 2012 and the amount for each exemption - such as the personal exemption for yourself or dependent exemptions. Remember that the exemptions can help reduce the total amount of taxable income you have.
5. The standard mileage rates have changed. If you drove your car for work or education-related work in 2013, the standard mileage rate is 56½ cents per mile. Use your car for medical purposes? The standard mileage rate allowed for this in 2013 is is 24 cents per mile.
6. The maximum amount of income you can earn and still qualify for the earned income credit (EIC) has increased. You may qualify for this credit if you have 3 or more children qualifying and earned less than $ 46,227 ($ 51,567 if married filing jointly), you have 2 children qualifying and earned less than $ 43,038 ($ 48,378 if married filing jointly), you have one qualifying child and earned less than $ 37,870 ($ 43,210 if married filing jointly) and you do not have a qualifying child and earned less than $ 14,340 ( $ 19,680 if married filing jointly on). Keep in mind that your adjusted gross income must be less than these amounts.
7. Similarly, the maximum investment income increased. You can win up to $ 3,300 of investments and still receive the earned income credit.
8. Two credits have expired. If you asked the minimum tax for plug-in electric vehicle credit or credit last year (or intend to do), you're out of luck -. These credits both expired and can not be claimed
9. additional Medicare tax of 0.9%. This tax applies to salaries Medicare, Tax Railroad Retirement Act (RRTA) Remuneration and freelance income over a certain amount depending on your filing status ($ 125,000 if married filing separately, $ 250,000 if the married filing jointly or $ 200,000 for any other filing status).
10. You may be subject to tax on net investment income. This tax of 3.8% on the lesser of net investment income or the amount of your modified adjusted gross income can apply depending on whether or not you have a certain amount of income based on filing status (125,000 $ if married filing separately, $ 250,000 if married filing jointly or qualifying widow [er] and $ 200,000 for any other filing status).

If all these changes make you nervous about filing your tax return, we do not blame you. Taxes can be complicated, especially when you consider the number of small tax law changes are made each year. Fortunately, a number of tax preparation services exist to help you navigate through the mud and out with a tax return filed successfully before April 15. You want to know more about how these tax services can help you? Check out our full page preparation services revision statements.