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Changes in effect for 2014

With so many proposed changes in our tax code sometimes it can be difficult to remember the finalized ruling or the update of any past laws.  Here are a few of the changes for 2014:

  1. Those without health insurance in 2014 will pay a tax calculated as the higher of $95 or 1% of household AGI. (This does not include taxpayers with hardship exclusions)
  2. The social security wage base increased to $117,000.
  3. Singles with wages exceeding $200,000 and couples earning over $250,000 will be subject to an additional .9% Medicare surtax.
  4. HSA contributions go up to $3,300 for individuals and $6,550 for family coverage.
  5. Standard deduction amounts rise: $12,400 for married filing jointly with an additional $1,200 for each person over 65; single filers get $6,200, head of households get $9,100, both with an additional $1,550 if over 65.
  6. Personal exemptions rise to $3,950.
  7. The 20% capital gains rate will hit taxpayers at a slightly higher income level; at $406,750 for singles, $432,200 for head of households, and $457,600 for joint filers.
  8. The federal estate and gift tax exemption rises to $5,340,000, thought the rate remains at 40%.
  9. The standard mileage rate for business miles is 56 cents a mile, medical travel and moving miles also fell to 23.5 cents a mile, but the charitable miles stay at 14 cents per mile.
  10. The income ceiling for Roth IRA payins are up to $181,000 to $190,000 of AGI for couples and $114,000 to $129,000 for singles.

If you have any questions about how these changes affect your tax situations please contact your tax advisor.

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