READER'S ROCK LIFESTYLE MAGAZINE VOL 2 ISSUE 4 NOVEMBER 2014 VOL 2 ISSUE 5 DECEMBER 2014 | Page 65
nonbusiness energy property credit and
state and local sales tax deduction.
Congress is expected to vote on
extending the tax breaks after the
November 2014 elections.
• If you purchased 2014 health
insurance from the federal or a statesponsored marketplace, you’ll receive
Form 1095-A around January 31. The
form will have the information you
need to report on your tax return,
including the premium tax credit.
Simply enter the form information
when your tax program asks.
If you got the premium credit in
advance, your amount was based on
your estimated household income and
family size. Your credit amount will be
reconciled with your actual income and
family size on your tax return. If your
situation changed since applying for
insurance, you may receive a larger
refund or have to pay part of the credit
back.
• If you didn’t have minimum essential
health insurance for three or more
months in 2014 and don’t qualify for an
exemption, you may pay a penalty. The
shared responsibility payment is the
higher of 1 percent of your 2014
income or $95 per adult and $47.50 per
uninsured dependent under 18, up to
$285 per family. Your tax program will
ask simple questions to calculate your
payment.
If you qualify for an exemption,
Tax Law Changes You Need To Know To Maximize Your Refund
(NAPSI)—Although the U.S. federal
tax code has undergone over 4,600
changes since 2001, most changes are
unlikely to affect the average taxpayer.
Unless you’re an accountant or tax
lawyer, you don’t need to know the vast
majority of tax law changes. However,
you can maximize the benefits and
minimize any negative effect of
changes when you file your income tax
return.
“To avoid any surprises at tax time, do
a dry run of your tax return each fall,”
recommends TaxACT spokesperson
Jessi Dolmage. “DIY tax programs are
updated with the latest tax laws every
fall. Just answer simple questions and
the program will calculate your refund
or liability as it currently stands so you
can see what’s changed. The interview
will also review credits and deductions
you may still qualify for through Dec.
31.”
You can use the tax preparation filing
products to get early calculations of
your taxes or use a tax calculator such
as TaxACT’s at www.taxact.com/taxcalculator.
Whether you do any year-end tax
planning or wait until the filing
deadline, here’s a list of key changes
that could impact your federal tax
return due April 15, 2015:
• Personal and dependent exemptions
increase to $3,950 per person.
• The 2014 standard deduction is
$6,200 for a single taxpayer and $9,100
for a head of household. The standard
deduction for married couples filing
jointly also increases to $12,400.
• Several benefits have expired,
including the tuition and fees deduction,
educator expense deduction, deduction
for mortgage insurance premiums,
cancellation of some mortgage debt,
remember some require you to have a
certificate number (ECN) for your tax
return in order to avoid the shared
responsibility payment. To get an ECN,
you must send an application and
supporting documentation to your
marketplace. Application processing
can take several weeks, so apply now to
avoid delay of yo