Taxes in 2014: What to Expect

Last updated on January 6, 2013

The year 2014 brings with it changes in the tax code: many tax credits have now expired, there will be new tax breaks to take advantage of, and there will also be new IRS reporting requirements.

In 2014, there will be many big changes in the reporting requirements for Americans living overseas and foreign financial institutions with American account holders. Starting 2014, they will need to provide the IRS financial information that they never were required to share with the agency before.

Married same-sex couples, now in many states with the same tax rights as their heterosexual counterparts, will need to prepare their taxes differently. They are required to file a dummy return this year, and see how their married filing jointly status affects their tax liability.

In 2014, the self-employed get a tax break for their home office. If you are self-employed and work from a home office, you can claim this deduction to reduce the amount you pay in taxes. The deduction is equal to $5/square foot of home office space. It can only be claimed for up to 300 square feet.

Many of the Bush tax cuts have now expired. Although the expiration of tax breaks is not a pleasant event, many of the tax cuts brought about in the Bush presidency were to expire in 2010, but were extended until the end of 2013. Even though that means higher taxes in 2014, making use of the tax credits and deductions can bring down your tax bill.