• Personal and dependent exemptions increase to $3,950 per person.
• The 2014 standard deduction is $6,200 for a single taxpayer and $9,100 for a head of household. The standard deduction for married couples filing jointly also increases to $12,400.
• Several benefits have expired, including the tuition and fees deduction, educator expense deduction, deduction for mortgage insurance premiums, cancellation of some mortgage debt, non-business energy property credit and state and local sales tax deduction. Nevertheless, Congress was expected to vote on extending the tax breaks following this month's elections.
• If you purchased 2014 health insurance from the federal or a state-sponsored marketplace, you’ll receive Form 1095-A around Jan. 31. The form will have the information to report on your tax return, including the premium tax credit.
If you got the premium credit in advance, your amount was based on your estimated household income and family size.
Your credit amount will be reconciled with your actual income and family size on your tax return. If your situation changed since applying for insurance, you may receive a larger refund or have to pay part of the credit back.
• If you didn’t have minimum essential health insurance for three or more months in 2014 and don’t qualify for an exemption, you might pay a penalty. The shared responsibility payment is the higher of 1 percent of your 2014 income or $95 per adult and $47.50 per uninsured dependent under 18, up to $285 per family.
If you qualify for an exemption, some require you to have a certificate number (ECN) for your tax return in order to avoid the shared responsibility payment. To get an ECN, you must send an application and supporting documentation to your marketplace. Application processing can take several weeks, so apply now to avoid delay of your tax refund.
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