The IRS announced inflation adjustments for 2014. These inflation adjustments are for more than 40 tax provisions. Some of the provisions include the following:
- The standard deduction rises to $6,200 for singles and married persons filing separate, $12,400 for married filing jointly and $9,100 for heads of households, for tax year 2013.
- Tax rate of 39.6% affects singles with income exceeding $406,750 and $457,600 for married filing jointly.
- The personal exemption will rise to $3,950. The exemption is subject to a phase-out with adjusted gross incomes of $254,200 for singles and $305,050 for married filing jointly. It will phase-out completely at $376,700 for singles and $427,550 for married filing jointly.
- On tax year 2014 returns, the limitation for itemized deductions claimed for individuals begins with incomes of $254,200 or more and $305,050 for married filing jointly.
Information on these and other tax provisions can be found at:
If you have any questions regarding this information, please contact us here at Edmondson, Betzler & Montgomery, PLLC.