What's new for 2014?
- topshelftax
- Jan 12, 2014
- 2 min read
Every year there are changes to the tax law. Some are simple and expected like inflation adjustments to the standard deduction and personal exemption amounts. Others are more complex like the effects of the ACA (Obamacare) on your tax filings. I've noted a few changes I feel are most relevant to filing your 2013 tax return below:
- The Standard Deduction for Singles increased to $6100 and is scheduled to increase to $6200 for 2014. For Married Couples these amounts are $12,200 for 2013 and $12,400 for 2014.
- The Personal Exemption amount, which you receive for yourself and each of your dependents, increased to $3900 for 2013, and is scheduled to increase to $3950 in 2014.
- For those of you claiming the deduction for use of a home office, the IRS has simplified the calculation for that deduction if you so choose. The new 'Standard' Home Office Deduction can be taken at a rate of $5 per square foot of exclusive office space, with a maximum deduction of $1500. You may still, however, elect to tally up actual expenses as you have done in the past.
- Last on my last is the change to the deduction for medical expenses. This is perhaps one of the more frustrating changes to many taxpayers. Medical expenses have only been deductible once they surpassed 7.5% of your AGI. That floor has now increased to 10%, meaning most taxpayers will not be able to take advantage of this itemized deduction. Taxpayers age 65 and older can still enjoy the lower threshold until 2017. For the rest of us, seems like a great time to get into a high-deductible HSA health insurance plan if you aren't already!
For more info on significant, this article posted by The Denver Post is very helpful - http://www.denverpost.com/lifestyles/ci_24988700/watch-these-tax-changes
Feel free to contact us at Top Shelf with any questions you may have also!
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