2014 Various Tax Benefits Increase Due to Inflation Adjustments 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 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). The personal exemption rises to $3,950, up from the 2013 exemption of $3,900. The AMT exemption 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 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. Estates of decedents who die during 2014 have a basic exclusion amount of $5,340,000, up from a total of $5,250,000 for estates of decedents who died in 2013. The annual exclusion for gifts remains at $14,000 for 2014. The annual $ limit on employee contributions to employer-sponsored healthcare FSA remains unchanged at $2,500. The foreign earned income exclusion rises to $99,200 for tax year 2014, up from $97,600, for 2013. The small employer health insurance credit provides that the maximum credit is phased out based on the employer’s number of full-time equivalent employees in excess of 10 and the employer’s average annual wages in excess of $25,400 for tax year 2014, up from $25,000 for 2013.
Posted on: Thu, 31 Oct 2013 19:02:57 +0000
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