Tax Filing Rules When Filing in 2014

Last updated on March 19, 2014

When filing taxes, you need to be up-to-date about the latest changes in the tax rules, keep yourself protected from tax scammers, and ensure that your tax return is prepared correctly and filed on time. For filing in 2014, be aware of the changed tax rules on income from U.S. possessions.

The changed tax rules for income received from U.S. possessions states that the maximum amount of self-employment income that is subject to social security is US $113,700 in 2013. The maximum income for using the permitted optional methods is US $4,640. Along with that, taxpayers’ whose income exceeds a certain threshold amount must pay the Additional Medicare Tax (AMT) of 0.9 percent. More details of the changed tax rules for U.S. possessions can be found here.

If you cannot file your tax return until after April 15^th, 2014, then you must apply for a six month extension to file using Form 4868, Automatic Extension. If you file later without getting an extension, you will be charged a penalty for late payment and also pay interest on the tax amount owed until it is paid in full.

As tax filing season will be over within a month, it is best to prepare and file your return as soon as possible to avoid missing the April 15^th deadline.