Extended Tax Provisions 2014 – It is common knowledge that tax law is constantly changing and it seems that Tax Year 2014 will be no exception. Every year the government makes some changes to the tax code in an attempt to make it fit the current economic climate. These changes include doing away with existing tax laws, initiating new laws and either renewing temporary tax provisions or allowing them to expire. When the American Taxpayer Relief Act was signed into law in January of 2013, it established some new tax laws as well as extending some temporary provisions through the end of the year. Fifty-five of those temporary provisions expired on December 31st. Although some of those measures are sure to be renewed, there is no telling which ones that will be or when the renewals will take place.
Listed below are a few of the changes that are on the books for Tax Year 2014:
- Affordable Health Care Penalty Taxpayers who fail to buy a health insurance plan before the enrollment deadline of March 31, 2014 will be assessed a penalty equal to either 1% of the yearly household income or a set amount for each uninsured individual or family, whichever is higher. The penalty will be due with the filing of the 2014 tax return.
- Joint Tax Returns for Same-Sex Couples Starting in 2014 with returns, same sex couples will file their federal tax returns either jointly or as married filing separately, regardless of whether they live in a state that recognizes same-sex marriage. However, if they live in a state that does not recognize same-sex unions they will have to file separate state returns as single taxpayers.
- Regulation of Tax Preparers A final decision on the regulation of professional taxpayers will probably be made some time in 2014. The IRS wants tax preparers who are not already licensed CPAs, Enrolled Agents or attorneys to be required to pass a competency exam and complete continuing education hours. However, a lawsuit has been filed against the IRS with reference to this issue and an appellate court decision is now pending.
- Tax Brackets and Personal Exemption Income tax brackets have been widened for 2014 and the personal exemption amount has been increased slightly, from $3900 to $3950.
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