2014 Tax Brackets, Standard Deduction Amounts & More (for taxes due April 15, 2015) Single Taxpayers

If taxable income is over—	but not over—	the tax is:
$0	$9,075	10% of the amount over $0
$9,075	$36,900	$907.50 plus 15% of the amount over $9,075
$36,900	$89,350	$5,081.25 plus 25% of the amount over $36,900
$89,350	$186,350	$18,193.75 plus 28% of the amount over $89,350
$186,350	$405,100	$45,353.75 plus 33% of the amount over $186,350
$405,100	$406,750	$117,541.25 plus 35% of the amount over $405,100
$406,750	no limit	$118,118.75 plus 39.6% of the amount over $406,750

Married Filing Jointly and Surviving Spouses:

 

If taxable income is over—	but not over—	the tax is:
$0	$18,150	10% of the amount over $0
$18,150	$73,800	$1,815 plus 15% of the amount over $18,150
$73,800	$148,850	$10,162.50 plus 25% of the amount over $73,800
$148,850	$226,850	$28,925 plus 28% of the amount over $148,850
$226,850	$405,100	$50,765 plus 33% of the amount over $226,850
$405,100	$457,600	$109,587.50 plus 35% of the amount over $405,100
$457,600	no limit	$127,962.50 plus 39.6% of the amount over $457,600

Head of Household:

 

If taxable income is over—	but not over—	the tax is:
$0	$12,950	10% of the amount over $0
$12,950	$49,400	$1,295 plus 15% of the amount over $12,950
$49,400	$127,550	$6,762.50 plus 25% of the amount over $49,400
$127,550	$206,600	$26,300 plus 28% of the amount over $127,550
$206,600	$405,100	$48,434 plus 33% of the amount over $206,600
$405,100	$432,200	$113,939 plus 35% of the amount over $405,100
$432,200	no limit	$123,424 plus 39.6% of the amount over $432,200

Married Filing Separately:

If taxable income is over—	but not over—	the tax is:
$0	$9,075	10% of the amount over $0
$9,075	$36,900	$907.50 plus 15% of the amount over $9,075
$36,900	$74,425	$5,081.25 plus 25% of the amount over $36,900
$74,425	$113,425	$14,462.50 plus 28% of the amount over $74,425
$113,425	$202,550	$25,382.50 plus 33% of the amount over $113,425
$202,550	$228,800	$54,793.75 plus 35% of the amount over $202,550
$228,000	no limit	$63,981.25 plus 39.6% of the amount over $228,800

 

Standard Deductions. The standard deduction rises to $6,200 for single taxpayers and married taxpayers filing separately. The standard deduction is $12,400 for married couples filing jointly and $9,100 for heads of household.

Itemized Deductions. The limitation for itemized deductions – claimed on individual returns for tax year 2014 will begin with incomes of $254,200 or more ($305,050 for married couples filing jointly).

Personal Exemptions. The personal exemption amount is $3,950 in 2014, up from $3,900 in 2013. Phase-outs for personal exemption amounts begin with adjusted gross incomes (AGI) of $254,200 for individuals and $305,050 for married couples filing jointly; the personal exemptions phase out completely at $376,700 for individual taxpayers ($427,550 for married couples filing jointly.)

Alternative Minimum Tax (AMT) Exemptions. The AMT exemption amount for tax year 2014 is $52,800 for individuals and $82,100 for married couples filing jointly. That compares to $51,900 and $80,800, respectively for 2013.

Earned Income Tax Credit (EITC). For 2014, the maximum EITC amount available is $3,304 for taxpayers filing jointly with one child; $5,460 for two children; $6,143 for three or more children and $496 for no children.

Child Tax Credit. For taxable years beginning in 2014, the value used to determine the amount of credit that may be refundable is $3,000 (the credit amount has not changed).

Kiddie Tax. For 2014, the threshold for the kiddie tax – meaning the amount a child can take home without paying any federal income tax – remains at $1,000.

Adoption Credit. For taxable years beginning in 2014, the credit allowed for an adoption of a child with special needs is $13,190; the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $13,190. Phase outs do apply beginning with MAGI in excess of $197,880.

Hope Scholarship Credit. In 2014, the Hope Scholarship Credit cannot exceed $2,500. The amount you can claim is equal to 100% of qualified tuition and related expenses not in excess of $2,000 plus 25% of those expenses in excess of $2,000 but not to exceed $4,000.

Flexible Spending Accounts. The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending accounts (FSA) remains at $2,500 for 2014.

Individual Retirement Account Contributions. The $5,500 limit on IRA contributions remains the same in 2014.

Estate Tax Exemption. The exclusion amount for estates of decedents who die in 2014 is $5,340,000, up from a total of $5,250,000 in 2013.

Federal Gift Tax Exclusion. The annual exclusion for gifts remains at $14,000 for 2014. For other tax law changes and updates contact Rudolph Isaacs, CPA.