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2014 Tax Year: What you need to know

2014 Tax Year: What you need to know

Photo Credit: Flickr/Ken Teegardin

2014 Tax Year: What you need to know

By Carolyn Hauck on March 05, 2015

Unless you’re a financial early bird and already e-filed or mailed off your taxes, the upcoming April 15th due date is sneaking up. And this year, the adage “no news is good news” holds somewhat true.

In years past, we’ve seen new deductions and tax credits take place, but according to R. Klein, a certified Tax Advisor on JustAnswer, there aren’t many changes to take notice of this year. In fact, the two major points average U.S. tax filers need to know about are 1) some of the key provisions that were set to expire at the end of the 2013 tax year were extended to end of the 2014 tax year. And 2) the IRS made adjustments for inflation that will put a few extra dollars in your pocket.

Here are a few highlights for the 2014 tax year:

  • All tax brackets rose slightly to adjust for inflation
  • Personal and dependent exemptions rise from last year’s $3,900 to $3,950
  • Standard deductions rise to $12,400 for married taxpayers filing jointly, $9,100 for heads of household and $6,200 for singles and married taxpayers filing separately
  • Maximum earned income tax credit rises to $6,143
  • $3000 child tax credit stays the same this year
  • Health savings accounts annual deductible amounts increase to $6,550 for families and $3,300 for individuals
  • $5,500 limit on IRA contributions remains the same

Everyone’s financial situation is unique. Talk with an accountant or tax lawyer about your deductions, exceptions and more now.