Here at Bryant & Associates P.C. located in Lincoln, Nebraska, we want to inform you about the possible tax tricks you may have not known about for 2014. The American Taxpayer Relief Act made a lot of tax laws permanent so that Congress couldn’t keep changing them year to year. However, below you will learn about the new tax tricks to watch out for this year in 2014.
Extra taxes for the wealthy
The American Taxpayer Relief Act did not help the wealthy. If you make over $400,000 single or $450,000 jointly, you could face an extra tax on top on the 39.6% that is already taken out. There is a new tax of 3.8% called the Medicare surtax that goes towards older Americans health coverage that will affect people’s gross income or net investment income( whichever one is lower) that make over $200,000 single or $250,000 jointly. In addition, if you make $250,000 single and $300,000 jointly, you will see the amount of your deductions and exemptions go down. In other words, you’ll be paying in more all around.
Home Office Deduction
If you have an in-home office, there is a new simplified deduction option for you this year on your taxes. The IRS is offering $5 for each square foot of your office, up to 300 square feet. This equals a maximum of $1500 annually. This way of filing will save you a lot of time. Contact Bryant & Associates P.C. for more information about this process.
Inflation Tax Adjustments
Inflation had an effect on about 40 tax provisions. In 2014 tax brackets have been widened, so you are able to make more money and have the same amount of taxes taken out. At Bryant & Associates, we think this is good news! The personal exemption amount also increased for a standard deduction from $3,900 to $ 3,950. However, the amount you can put into your pension and IRA account will be the same.
Be ready to wait in the beginning and end of the year in 2014
Since the government shut down for 16 days in October, the IRS didn’t accept any returns until January 31, 2014. For the end of 2014 taxpayers could lose many tax breaks if congress does not choose to extend them into the next year. They have not decided yet and the longer they wait, the harder it will be to determine 2014 taxes.
The Affordable Care Act is officially up and running for 2014. You can sign up for Obamacare through March 31, 2014 if you are currently uninsured. However, if you choose not to be insured you will pay a penalty. Our accounting experts want you to know that this penalty is 1% of your yearly income for the entire household or $95 per adult and $47.50 per child. You pay whichever is higher. Your penalty will be deducted from the refund you were to receive and if your refund is not enough then you will receive a bill for the remaining amount.
Same-sex marriages file jointly
Same-sex marriages are now allowed to file jointly even if their state does not recognize them as a married couple. However, they may still have to file separately for state tax returns.
Contact Bryant & Associates Today at (402) 423-0404 in Lincoln
Our CPAs and tax experts at Bryant & Associates P.C. hope this list helps you avoid any tax traps you may have fallen into. If you are a small business or filing for personal taxes in Lincoln, Nebraska and have any questions or concerns about your taxes for 2014, contact us at (402) 423-0404. We will be happy to help you out any way we can.