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| Tax School Homepage |
| begin to be
reduced when your total adjusted gross income exceeds certain amounts. These
amounts are * $254,200 for single taxpayers * $305,050 for married taxpayers filing jointly. * $279,650 for head of household taxpayers, and * $152,525 for married filing separate taxpayers. |
| Additionally, your itemized deduction amounts are also subject to reductions based on your income. However, your itemized deductions cannot be reduced by more than 80% as a result of the 3% reduction of the amount by which your AGI exceeds certain threshold amounts. Furthermore, your itemized deductions for medical expenses, investment interest expenses, casualty and theft, and gambling losses are not reduced as a result of this 3% reduction. |
| The standard deduction rises to $12,400 for married couples filing jointly for tax year 2014. The standard deduction for heads of household rises to $9,100, up from $8,950. Additionally, the limitation for itemized deductions to be claimed on tax year 2014 returns of individuals begins with incomes of $254,200 or more. The limitation for itemized deductions to be claimed on tax year 2014 returns of married filing jointly individuals begins with incomes of $305,050 or more. |
| The new personal exemption amounts rises to $3,950. This exemption is subject to a phase-out that begins with adjusted gross incomes of $254,200 for singles. And the exemption amount for married filing jointly is subject to a phase-out at adjusted gross income of $305,050. Furthermore, the Alternative Minimum Tax exemption amount for tax year 2014 is $52,800. The married filing jointly Alternative Minimum Tax exemption amount for tax year 2014 is $82,100 for married couples filing jointly. |
| All the Earned Income Credit amounts rise also. For 2014, the maximum Earned Income Credit amount is $6,143 for taxpayers filing jointly who have 3 or more qualifying children. The Earned Income Tax Credit is a yearly benefit for people hard at work to make ends meet. People can file a return just to claim the credit, even if they don't have a filing requirement. This is a refundable credit which means that taxpayers may get money back regardless if they had tax withheld or not. You must qualify and follow strict rules to qualify for the credit. Tax preparers must exercise due diligence in issuing this credit to taxpayers. |
| Estates of decedents who die during 2014 have a basic exclusion amount of $5,340,000. The Estate Tax is a tax on your right to transfer property at the time of your death. It consists of everything you own or everything you have an interest in at the time of your passing. The total of all the items you own is your gross estate. Anything you own is game when considering what items are includable in your estate. Then after you figure your gross estate, you need to figure out your deductions allowed so you can arrive at your taxable estate. Simple estates would not really require a filing of an estate return. A filing is required for estate with combined gross assets and taxable gifts exceeding $5,340,000 in 2014. There is |
| Copyright © 2014 [Hera's Income Tax School]. All Annual Federal Tax Refresher Course rights reserved. |
| Revised: 05/28/15 |
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