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Tax Law Changes for Tax Year 2014

Standard Deduction Amount
. Single    -    $6,200

. Married Filing Jointly and Qualifying Widow   -   $12,400
. Married Filing Separately   -   $6,200                                                
. Head of Household   -   $9,100

If the taxpayer is 65 or older and/or blind, the basic amount will increase.

Earned Income Credit Amount
Earned Income and adjusted gross income (AGI) must each be less than:

  • $46,997 ($52,427 married filing jointly) with three or more qualifying children
  • $43,756 ($49,186 married filing jointly) with two qualifying children
  • $38,511 ($43,941 married filing jointly) with one qualifying child
  • $14,590 ($20,020 married filing jointly) with no qualifying children

Tax Year 2014 Maximum Credit:

  • $6,143 with three or more qualifying children
  • $5,460 with two qualifying children
  • $3,305 with one qualifying child
  • $496 with no qualifying children

Investment income must be $3,350 or less for the year.

Standard Mileage Rates
Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup or panel truck will be:

  • 57.5 cents per mile for business miles driven, up from 56 cents in 2014
  • 23 cents per mile driven for medical or moving purposes, down half a cent from 2014
  • 14 cents per mile driven in service of charitable organizations

Affordable Care Act (Tax Provisions)

Individuals & Families
The health care law addresses health insurance coverage and financial assistance options for individuals and families, including the premium tax credit. It also includes the individual shared responsibility provision and health coverage exemptions from that provision.The IRS administers the tax provisions included in the law.

Employers
The health care law contains many tax and other provisions for employers. The IRS administers the tax provisions included in the law.

Premium Tax Credit:  You may be eligible to claim the premium tax credit if you, your spouse, or a dependent enrolled in health insurance through the Health Insurance Marketplace.