2014 Standard Deductions and AMT Exemptions

Standard deductions for 2014 rise a bit. Marrieds get $12,400. If one spouse is age 65 or older…$13,600. If both are…$14,800. Singles can claim $6,200...$7,750 if they’re 65. Household heads get $9,100 plus $1,550 more once they reach age 65. Blind people receive $1,200 more ($1,550 if unmarried and not a surviving spouse). High-incomers lose their itemized deductions above a higher level for 2014. Their write-offs are slashed by 3% of the excess of AGI over $254,200 for singles, $279,650 for household heads and $305,050 for marrieds. But the total reduction can’t exceed 80% of itemizations. Medicals, investment interest, casualty losses and gambling losses (to the extent of winnings) are exempted from this cutback. Personal exemptions increase to $3,950 for filers and their dependents. However, this write-off is phased out for upper-incomers. It is trimmed by 2% for each $2,500 of AGI over the same thresholds for the itemized deduction phaseout. The 20% top rate on dividends and long-term gains starts at a higher level for 2014...singles with taxable income above $406,750, household heads over $432,200 and joint filers above $457,600. The 3.8% Medicare surtax boosts the rate to 23.8%. The regular 15% maximum rate applies for filers with incomes below these amounts, except that filers in the 10% or 15% income tax bracket still get the special 0% rate. AMT exemptions are increasing for 2014. They jump to $82,100 for couples and $52,800 for both singles and heads of household. The phaseout zones for the exemptions start at higher income levels as well...above $156,500 for couples and $117,300 for single filers and household heads. Also, the 28% AMT tax bracket kicks in a little later in 2014...above $182,500 of alternative minimum taxable income.