Tax Filing in 2014

Last updated on March 17, 2014

Taxpayers must not only ensure that they are filing their 2013 taxes correctly, but also consider if they are using all the tax credits and deductions allowed to them. When filing taxes in 2014, you should check if you qualify for the Earned Income Tax Credit, tax credits for supporting higher education of dependents, and other tax deductions you may be eligible for.

You do not need to file taxes if your income is less than $10,000 for single filers, $20,000 for joint filers, $12,850 for heads of household, and $16,100 for qualifying widows and widowers. Even if you not are required to file taxes, you should research the refundable credits that you may qualify for to see if filing taxes can get you a refund. Refundable tax credits such as American Opportunity Credit, the Earned Income Tax Credit, and adoption credit reduce taxes considerably and can potentially be used to receive a refund.

If you receive income from U.S. possessions such as the U.S. Virgin Islands, Puerto Rico, American Samoa, Guam and the Northern Mariana Islands, then you need to make changes in how you file taxes this year because of new IRS regulations. You may need to file a US tax return only, a tax return for that U.S. possession only, or both, generally depending on whether you are a bona fide resident of the U.S. possession or not.

The new rule says that the maximum amount of self-employment income subject to social security in 2013 is US $113,700, while the maximum income for using the permitted optional methods is US $4,640. Along with the 0.9 percent Medicare tax, you may also need to pay Additional Medicare Tax (AMT). You may also be required to report AMT withheld by an employer.

As you file your 2013 tax returns, be sure to start planning your 2014 taxes. The effort you put into planning your taxes leads to less work preparing your return and potentially a smaller tax bill at the end of the tax year.