Tax Law Changes
The most frequently asked tax questions related to Tax Law Changes
2014 Alternative Minimum Tax exemption
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The Alternative Minimum Tax exemption amount for tax year 2014 is $52,800 ($82,100, for married couples filing jointly).
The 2013 exemption amount was $51,900 ($80,800 for married couples filing jointly).
The 2013 exemption amount was $51,900 ($80,800 for married couples filing jointly).
2014 personal exemption amounts
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The personal exemption rises to $3,950, up from the 2013 exemption of $3,900.
However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $254,200 ($305,050 for married couples filing jointly).
It phases out completely at $376,700 ($427,550 for married couples filing jointly.)
However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $254,200 ($305,050 for married couples filing jointly).
It phases out completely at $376,700 ($427,550 for married couples filing jointly.)
1996 Defense of Marriage Act. DOMA - invalidated
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
On 8/29/13, the U.S. Department of the Treasury and the Internal Revenue Service (IRS) ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.
The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.
The ruling implements federal tax aspects of the June 26 Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act.
The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.
The ruling implements federal tax aspects of the June 26 Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act.
2014 Itemized deductions phase-out amounts
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The limitation for itemized deductions claimed on tax year 2014 returns of individuals begins with incomes of $254,200 or more ($305,050 for married couples filing jointly).
2014 Earned Income Credit
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The maximum Earned Income Credit amount is $6,143 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,044 for tax year 2013.
The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phase outs.
The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phase outs.
2014 Gift Tax exclusion
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The annual exclusion for gifts remains at $14,000 for 2014.
2014 FSA annual limit
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) remains unchanged at $2,500.
2014 Standard Deduction
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The standard deduction rises to $6,200 for singles and married persons filing separate returns and $12,400 for married couples filing jointly, up from $6,100 and $12,200, respectively, for tax year 2013.
The standard deduction for heads of household rises to $9,100, up from $8,950.
The standard deduction for heads of household rises to $9,100, up from $8,950.
2014 Tax Rates
Asked Thursday, October 31, 2013 by an anonymous userCPA Answer:
The tax rate of 39.6 percent affects singles whose income exceeds $406,750 ($457,600 for married taxpayers filing a joint return), up from $400,000 and $450,000, respectively. The other marginal rates – 10, 15, 25, 28, 33 and 35 percent – and the related income tax thresholds are described in the revenue procedure.