For most people, the biggest change in 2014 is the individual mandate for health purchase insurance .
If you are a high-income taxpayer, you can also pay higher tax rates and new taxes.
If you qualify for some tax breaks, you'll be pleased to know most of them are extended until 2014 or beyond.
See if any of these changes affect you.
The Patient Protection and mandate Act Health Insurance Affordable Care goes into effect
Starting in 2014, you must perform a minimum health insurance for yourself, your spouse and dependents, or perhaps pay a fine.
If you have adequate health insurance through your employer, you buy coverage for yourself, or you are enrolled in a government program like Medicaid, you have to do something different
If you qualify for an exception. For example, if your income is too low for you to be required to file a return, you will not have to pay the fine.
If you are not covered or qualify for an exception, you may be hit with a tax penalty of up to 1% of your annual income, or $ 95 per person for 2014, the highest . Punishment ranges in 2015.
New 3.8% Medicare tax on investment
The Affordable Care Act also mandated an additional fee of 3.8% on income investment, including interest, dividends, capital gains, rental and royalty income.
This special tax is collected for health insurance, from 2013. You pay only if your modified adjusted gross income is $ 0,000 or more ($ 250,000 if filing jointly, or 125,000 $ if married filing separately).
you pay tax of 3.8% in addition to the taxes you already pay investment income. For example, if you pay 20% tax on long-term capital gain, your total tax on the gain is 23.8% (20% + 3.8%).
Cost Health Insurance New Medicare payroll
The Affordable Care Act levies a special tax on wages and other income of high-income taxpayers.
you have to pay this tax if you earn more than $ 0,000 in wages, compensation and self-employment income ($ 250,000 if filing jointly, or $ if married and 125.000 filing separately).
your employer generally retains the tax on supplementary health insurance from your salary. If you're self-employed, you must plan for this tax when you calculate your estimated taxes.
This tax came into force in 2013.
simplified option for home office deduction
The IRS may have good news for if you are working from home as an employee or self-employed and take a home office deduction.
from 2013, you can use a simplified option to determine your deduction, based on $ 5 per square foot of home use for businesses (up to 300 square feet).
When you take the simple deduction, you can still deduct mortgage interest and property taxes in full itemized deductions. In addition, you do not have to worry about calculating depreciation of your home, or resume amortization later when you sell your home.
energy credits
Thanks to an extension until 2015, you can still get a tax credit for energy efficiency for the qualification of energy-efficient products such as windows and doors, biomass stoves, and insulation.
The credit is 10% of the cost of your improvements of qualified energy installed during the year, as well as all costs of residential energy property
Your Credit total for all years after 05 can not be more than $ 500
Background: .. IRS e-file starts the end of this year
IRS will begin processing tax returns on personal income from 31 January 2014 the IRS is getting a late start accepting e-file returns this year because of the sequester.
However, if you have not already, start your TaxACT return now so you can send a file and be at the forefront when the IRS begins accepting e-file returns. We will hold and then submit your return to the IRS as soon as he begins to accept returns of TaxACT and other tax preparation solutions.
Did you start planning your tax year 2014 as you prepare your 2013 statement?
photo credit: thomasstache via photopin cc
0 Komentar