Small Business Taxes & ManagementTM--Copyright 2015, A/N Group, Inc.
New for 2014 Returns
What's new for 2014 returns? The two most important issues are the renewal of the tax provisions that expired at the end of 2013 such as the deduction for state and local sales taxes as an option to deducting state income taxes. Same for business provisions. We'll list the most important ones quickly below. The other major issue involves health-care taxes and credits.
Back for 2014
As usual, a number of phaseouts, credit amounts, etc. have changed as a result of required inflation adjustments. You can find these amounts at Inflation Adjusted Tax Rates. If you use software to prepare your return and enter your data in the worksheets (i.e., don't override entries), your software should automatically handle these changes. The standard mileage rate for medical and moving purposes is 23.5 cents per mile; for charitable purposes it's 14 cents per mile; for business use of an auto it's 56 cents per mile. Accrued interest on Series EE savings bonds is taxable on bonds issued in 1984.
In addition, new rules apply to tangible property. For individuals, you want to make an election with your return to adopt and expense policy for acquisitions for rental properties. You may also have to file Form 3115 Application for Change in Accounting Method. Check with your tax advisor. This also applies to business tangible property.
Tangible property rules. In addition, new rules apply to tangible property. You may have to make an election with your return to adopt an expense policy for acquisitions or to capitalize repair costs. You may also have to file Form 3115 Application for Change in Accounting Method. Check with your tax advisor.
Health care for individuals. Beginning with 2014 returns, an individual care provider who received certain payments from a Medicaid waiver program as a result of caring for someone who resides in your home may be able to exclude these payments from income.
On this year's return, taxpayers who got health insurance through the Health Insurance Marketplace may have received a credit, reducing their premium cost. If the premium credit you received was more than allowed (complete Form 8962) you will have to repay the unallowed amount. Enter it on Line 46. Excess advance premium tax credit repayment. You should have received a Form 1095-A, Health Insurance Marketplace Statement providing you with information on any premiums you paid.
If you did not receive an advance credit, you may be entitled to a net premium tax credit for coverage you purchased. Use Form 8962 to enter the information and compute the credit. Report the amount of the net premium tax credit on Line 69 and attach Form 8962.
Line 61. Health care individual responsibility. If you had full-year minimum essential coverage for every month of the year for you and your family, all you need do is check the box on this line (your software may require you to open a worksheet). If you did not have such coverage for the full year and you have no qualifying exemptions, your software will compute your shared responsibility payment which must be included on this line.
Copyright 2015 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject. Copyright is not claimed on material from U.S. Government sources.--ISSN 1089-1536
--Last Update 02/09/15