• NEW TAX LAWS FOR 2014

    Earned Income Tax Credit (EITC)

      2017 Maximum Credit Amounts: .$6318 with three or more qualifying children .$5616 with two qualifying children .$3400 with one qualifying child .$510 with no qualifying children    

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    Itemized Deductions

    Pease limitations, named after former Rep. Don Pease (D-OH) – claimed on individual returns for tax year 2014 will begin with incomes of $254,200 or more ($305,050 for married couples filing jointly). The Pease limitations were slated to be reduced beginning in 2006 and eliminated in 2010; as with the other tax cuts, the elimination was extended through the end of 2012. The limitations were [...]

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    American Opportunity Credit

    American Opportunity Credit The American Opportunity Credit is offered to those taxpayers who have expenses relating to their first four years of post-secondary education. The credit can allow up to $2,500 of the first $10,000 of school expenses to be refunded to the taxpayer.

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    Personal Exemptions

    The personal exemption amount is $3,950 in 2014, up from $3,900 in 2013. Phase-outs for personal exemption amounts (sometimes called “PEP”) 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.)

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    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. In years past, the AMT was subject to a last minute scramble by Congress to “patch” the exemption but as part of the American Taxpayer Relief Act of 2012 (ATRA), the AMT is permanently adjusted for inflation – [...]

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    Flexible Spending Accounts

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

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    Federal 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.

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    Individual Retirement Account Contributions

    The $5,500 limit on IRA contributions remains the same in 2014. 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 [...]

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