1. YOU are required to file an income tax return if your 2014 gross income reaches:
Elderly and blind taxpayers add $1,200 to $1,550.
2. Personal exemptions $3,950
Phaseouts for personal itemized deduction and personal exemption were reinstated in 2013.
3. Standard deductions: If your combined itemized deductions for interests, taxes, medical and contributions are less than the following amounts, use the following standard deductions:
Elderly and blind taxpayers get an extra $1,200 for married and $1,550 for unmarried.
4. Child tax credit: $1,000 per child (additional refundable credit available).
5. Education credits:
A. American Opportunity Credit (HOPE): $2,500 per student (extended through 2017)
B. Lifetime Learning Credit: $2,000 per return.
6. Retirement plans limits:
7. Standard mileage rates:
A. Business: 56¢ per mile.
B. Medical and Moving: 23.5¢ per mile.
C. Charity: 14¢ per mile.
8. Long-term care insurance deduction limits: $370 to $4,660 depending on age.
9. Alternative minimum tax (amt) exemption amount increased. The AMT exemption amount is increased to $52,800 ($82,100 if married filing jointly and $41,050 if married filing separately).
10. Foreign earned income exclusion: $99,200.
11. Social Security taxes for next year 2015:
A. Minimum earnings to be covered by SS increases from $4,640 to $4,880 ($1,220 per quarter).
B. Maximum earnings allowed for 65 and under increased from $15,480 to $15,720.
C. Maximum amount subject to FICA went up from $117,000 to $118,500.
D. Early retirement age is 62, full retirement 67 (born 1960 & later).
12. Estate and gift taxes for 2014-2015
* * *
Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. The firm celebrates its 38th anniversary in 2015.
* * *
Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in 704 Mira Monte Place, Pasadena, CA 91101. He has 50 years of experience in accounting, consulting, and tax work.
* * *
The Firm proudly welcomes Arlene Al-os in 2015. She obtained her bachelors of Science in Accountancy from Mindanao State University and MBA from Ateneo de Manila University. She teaches intermediate accounting at UCLA and was a professor of Economics at Asia Pacific College. She has over 15 years of experience including member firms of KPMG and BDO Seidman accounting firms.
* * *
Our readers may call (626) 744-0200 or email tax questions to [email protected]. Please visit our website for about 300 tax tips at www.victorsycpa.com.
