If you are going to be eligible to start receiving Social Security benefits, contact the Social Security Administration 3 months before your eligibility date. You may do so by calling 1-800-772-1213 or reduce processing time by applying online at www.ssa.gov. Click on “Online Services”, then “Apply for Benefits”.
YOUR TAX DEDUCTIONS:
The standard deduction for 2014 for a married couple filing a joint return is at $12,400; Single, $6,200; Head of Household, $9,100.
The personal exemption for 2014 is $3,950.
The reimbursement for Business mileage for 2014 is 56 cents. Medical mileage is 23.5 cents for 2014. The mileage rate for charity is still 14 cents for of 2014.
The meal rate for truck drivers is $59 a day for 2014. Per diem rates may have changed depending on the area in which you have traveled.
HIGHLIGHTS OF 2014:
AFFORDABLE CARE ACT:
The affordable Care act has created several changes to the preparation of your 2014 taxes. 2014 is the first year that all nonexempt individuals must have minimum essential health care coverage (health insurance) or be subject to a penalty. If you purchased insurance from the marketplace in 2014 you will receive a Form 1095A. We may require this form to complete your 2014 return! If you are covered by insurance not purchased through the marketplace you may receive a Form 1095B or 1095C. These forms are optional for 2014.PREMIUM TAX CREDIT:
Individuals that were not eligible for employer health insurance, that meet certain income limits and purchased their health care coverage through a marketplace are eligible for the Premium Tax Credit. An individual may have received an advanced payment of the credit during the year towards the health insurance premium. The credit is calculated on your 2014 return based on the taxpayer’s actual 2014 income. Form 1095A is required to calculate the credit
PENALTY FOR NON-COVERAGE:
The penalty for failure to have minimum essential Health Care Coverage is calculated as part of the 2014 Tax return. There are certain exemptions to the minimum coverage requirement. Some are granted by the marketplace others are based on the taxpayer’s household income. Your preparer can assist you in determining if you meet the income exemption. In order to do this we will need to know the income of any dependents claimed on your 2014 return, that was also required to file a tax return.
DEPRECATION CHANGES:
The limit for section 179 expense goes back to $25,000 for 2014. The amount is reduced if the total assets placed in service for the year exceed $200,000. The 50% First Year Bonus Depreciation also is not available for 2014. At the time of this writing there are proposals to extend the Section 179 and Bonus Depreciation for 2014, but they have not yet been approved.
MISC. TAX CHANGES:
There are several other items that expired at the end of 2013. These include The above the line $250 Educator Expense Deduction. The deduction for State and Local Sales Taxes instead of State and Local Income Taxes. Mortgage Insurance Premiums as an itemized deduction.
WHAT TO BRING TO YOUR TAX APPOINTMENT
Federal, state and local estimated payment vouchers.
W-2's, 1099's, SSA statement or business records if you are self-employed.
Social security cards for you, your spouse and dependents.
Date of birth for taxpayer, spouse and all dependents.