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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.