Tax filing in 2014: 7 new rules and 9 wacky deductions
Tax season is here, so it's time to ensure you're ready to get the most out of your filing. We're here to help you navigate the new rules for 2014 and alert you to some strange, wacky, but wonderful deductions you probably had no idea existed. When January 31 (the first day to file taxes this year) rolls around, you'll be ready – with education and pet moving deductions in tow.
1. Higher income means higher taxes
The 2014 tax refund season starts at the end of January, but just because you’ll be filing your 2013 refund doesn’t mean your tax process will be the same as last year. This year has brought a variety of changes, especially if you have a higher income and/or are filing medical expenses.
But beyond changes in taxes specific to this year, you’ll want to make sure you know about any special deductions to get the most out of your refund. The following list is a wrap-up of changes to watch out for in this year’s tax filing season, plus a couple of weird and wacky deductions that could save you an extra chunk of change.
First up, if you have a higher income, this year is likely going to mean higher taxes. George W. Bush-era tax cuts were permanently extended at the start of 2013, which means most people won’t see a huge change. However, if your income is over $400,000 for single filers, $450,000 for married couples, or $425,000 for heads of household, you’ll have a top marginal tax rate of 39.6 percent. Higher-income taxpayers may also see deductions and personal exemptions cut, plus see an increase in capital gains taxes – taxes on income made through investments such as stocks or real estate.