Tax changes applicable to 2014 included a personal and dependent exemption rise to $3,950 and an increase of the standard deduction to $12,400 for married taxpayers filing jointly, explains Turbo Tax. The maximum earned income tax credit increased to $6,143 for the 2014 tax year.
Other changes applicable to 2014 included a rise in the foreign earned income deduction to $99,200. The lifetime learning credit began its phase-out at $108,000 in adjusted gross income for joint filers or $54,000 for singles and heads of household. Taxpayers also had to adhere to a new deductible amount for health savings accounts, with $6,550 for families and $3,300 for individuals, reports Turbo Tax.
2014 changes also saw an increase in taxes, which included the addition of another tax bracket for individuals with a taxable income greater than $400,000 and joint filers who have a taxable income over $450,000, according to Turbo Tax. The tax on long-term capital gains increased from 15 to 20 percent for individuals with a taxable income greater than $400,000 and joint filers who have a taxable income over $450,000. Another applicable change in 2014 was the additional Medicare payroll tax increase of 0.9 percent on earned income for individuals above $200,000 or joint filers above $250,000.