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Posted by: Maricopa Lawyers on Apr 11, 2014

Taxes 2014

As the deadline for individual tax returns quickly approaches (April 15th) there are a few changes that you may need to know in 2014. Here are things to know about taxes in 2014.

  • Higher income individuals pay more this year. If income exceeds $400,000 for single filers and $450,000 married couples, individuals will have to pay the top marginal tax rate of 39.6%.
  •  Additionally, individuals and couples you make more than $250,000 will have to an additional .9% tax for Medicare.
  • Education deductions were extended to 2014. If you are either a teacher or a student take a look at the American Opportunity Credit which can give up to $2,500 per student for tuition and fees. Teachers can write off up to $250 for out-of-pocket expenses when teaching.
  • Although Medicare has been expanded it is much tougher to deduct medical expenses in 2014. You can only deduct medical expenses if they exceed 10 percent of your adjusted gross income.
  •   Same sex couples can now file for joint tax returns. Sam sex couples that have been married in any of the 17 states that have legalized gay marriage can choose to file joint federal tax returns. Also, same sex couples can file amended joint tax returns as far back as 2010.
  • Individuals and families who have adopted energy efficient improvements to their homes qualify for an energy credit of 10 percent.
  • If you work from home you can deduct up to $1,500.
  • Here is a weird one: if you have recently moved in the last year and you have pets you can actually deduct a sum from your taxes.