Brian Livesay San Diego Retirement Guardian says, “The biggest changes to tax law for 2014 taxes were in the ‘Affordable Health Care Act,’ but there are other changes you should pay attention to as well.”
There were a few changes other than the new health care provisions which all of a sudden made a whole lot of nothing into a whole lot of something.
The other tax law changes for tax year 2014 are important. Basically the standard deduction and the exemption credits were adjusted upward a bit. The new exemption credit per dependent went from $3,900 to $3,950. This amount is then reduced if your AGI (Adjusted Gross Income) exceeds certain levels; $152,525 for Married Filing Separately, $254,200 for filing Single, $279,650 for Head of Household filers, and $305,050 for Married Filing Joint or Qualifying Widow(er).
The standard deduction for Single and Married Filing Separate Filers went from $6,100 to $6,200. For Head of Household filers the Standard Deduction went from $8,950 to $9,100 and for Married Filing Jointly filers the Standard Deduction went from $12,200 to $12,400.
Taxpayers with Individual Retirement Accounts who are jumping around with their IRA should stop doing that. If you have been moving your IRA yearly you shouldn’t be doing that. The IRS will now only allow one non-taxable rollover per year.
This does not include IRA transfers.
In a roll-over the IRA owner receives the funds and has 60 days to complete the roll-over process or create a taxable event. In a transfer the financial institution that holds the funds also known as the custodian moves the funds directly to another custodian and no tax reporting is required.
There were several tax provisions that received a new lease on life. These extended provisions include:
• $250 Educator expense credit
• Cancellation of mortgage debt
• Section 197 property deprecation deduction and bonus deductions
• Tuition and fees deductions
• Qualified charitable distributions
• Energy efficient homes credits
• Mortgage insurance premiums write-offs
• Donation of food inventory
• Work opportunity tax credit
• Plug in electric vehicle credit up to $7500, but could be $2500. It’s a great idea to find out what credit you will receive before purchasing a qualifying vehicle.
• Research credit
• Qualified lease hold restaurant and retail improvement
For more about and by Brian Livesay go to his “Who Is” page: http://whois.sandiegoprofessionaljournal.com/brian-livesay-retirement-guardian/
You may also contact Brian Livesay at his office:
Retirees’ Tax Group
1761 Hotel Circle S., Ste 360
San Diego, CA 92108
Or, by telephone at (866) 726-0725.