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This information is intended to provide a general overview of the changes that we feel may be of interest to our individual clients 2014 tax return. It is not a complete listing of all the changes.  Please consult this office to determine how these changes may apply to you specifically.

What's New

This section summarizes important tax changes that took effect in 2014. Most of these changes are discussed in more detail throughout this publication.

Future developments. For the latest information about the tax law topics covered in this publication, including information about any tax legislation, go to www.irs.gov/pub17.

Health care: individual responsibility. You must either:

 

Indicate on your 2014 federal income tax return that you, your spouse (if filing jointly), and your dependents had health care coverage through-out 2014;

Claim an exemption from the health care coverage require-ment for some or all of 2014 and attach Form 8965 to your return; or

Make a shared responsibility payment if, for any month in 2014, you, your spouse (if fil-ing jointly), or your depend-ents did not have coverage and do not qualify for a cover-age exemption.

See the Instructions for Form 8965 for details.

Premium tax credit. You may be eligible to claim the premium tax credit if you, your spouse, or a de-pendent enrolled in health insur-ance through the Health Insurance Marketplace. See chapter 37 for more information.

Advance payments of the premium tax credit. Advance pay-ments of the premium tax credit may have been made to a health insurer to help pay for the insur-ance coverage of you, your spouse, or your dependent. If ad-vance payments of the premium tax credit were made, you must file a 2014 return and Form 8962. For more information, see chapter 37.

Form 1095A. If you, your spouse, or a dependent enrolled in health insurance through the Health Insurance Marketplace, you should have received Form(s) 1095-A. If you receive Form(s) 1095-A, save it. It will help you fig-ure your premium tax credit. If you did not receive a Form 1095-A, contact the Marketplace. See chapter 37 for information about the premium tax credit.

Medicaid waiver payments. If you received certain payments un-der a Medicaid waiver program for caring for someone who lives in your home with you, you may be able to exclude these amounts from your income. See chapters 12 and 36. If you reported these pay-ments on your return for 2013 or an earlier year, see www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From-Income. You may want to file Form 1040X to amend that prior year return.

Expired tax benefits. At the time this publication was prepared for printing, certain tax benefits had expired. These included the follow-ing:

 

Tuition and fees deduction.

Deduction for educator ex-penses in figuring adjusted gross income.

Deduction for state and local general sales taxes.

The exclusion from income of qualified charitable distribu-tions from IRAs.

Credit for certain nonbusiness energy property.

Deduction for mortgage insur-ance premiums.

You can find out whether legisla-tion extended these and other tax benefits to allow you to claim them on your 2014 return at www.irs.gov/pub17.

Pell grants and other scholarships or fellowships. Choosing to include otherwise tax-free schol-arships or fellowships in your in-come can increase an education credit and lower your total tax or in-crease your refund. See the in-structions for Form 8863 and Pub. 970, Tax Benefits for Education, for more information.

Personal exemption amount increased for certain taxpayers. Your personal exemption is in-creased to $3,950. But the amount is reduced if your adjusted gross income is more than:

 

$152,525 if married filing sep-arately,

$254,200 if single,

$279,650 if head of house-hold, or

$305,050 if any other filing status.

See chapter 3.

Standard mileage rates. The 2014 rate for business use of your car is reduced to 56 cents a mile. See chapter 26.

The 2014 rate for use of your car to get medical care is reduced to 2312 cents a mile. See chap-ter 21.

The 2014 rate for use of your car to move is reduced to 2312cents a mile. See Publication 521, Moving Expenses.

Mailing your return. If you live in Missouri and need to make a pay-ment with your paper return, you will need to mail it to a different ad-dress this year. See Where To File at the end of this publication.

Form 1099B. Form 1099-B has been redesigned so that the infor-mation on it is reported in boxes that are numbered to match the corresponding line and column on Form 8949. This will make it easier for you to complete Form 8949. See chapter 16.

Direct deposit. To combat fraud and identity theft, the number of re-funds that can be directly depos-ited to a single financial account or prepaid debit card is now limited to three a year. After this limit is ex-ceeded, paper checks will be sent instead. For more information about direct deposit, see chap-ter 1.

Direct Pay. The best way to pay your taxes is online with IRS Direct Pay. Just click on "Pay Your Tax Bill" on IRS.gov. For more informa-tion about how to pay your taxes, see chapter 1.

Please Contact Us For Additional Information
 
Phone us at 609-586-7676 or E-mail