When you file your income taxes, you have two choices for your deductions. You can either itemize your tax deductions, which means that you specifically account for all of your tax deductions, or you can take the standard deduction. The standard tax deduction is a number computed by the IRS each year. You can take the standard deduction amount for 2014, without having to fill out any additional forms, or keep any receipts or documentation.
2014 Standard Deduction for Income Taxes
That standard deduction amount is one of many IRS numbers that are indexed for inflation. That is, these numbers fluctuate every year based upon IRS calculations so as to stay constant in terms of real dollars. The standard tax deduction for 2014 rose slightly from the 2013 standard tax deduction amounts for the previous year. Remember, the 2014 standard tax deduction amount is used for taxes computed for 2014, which are the ones you must file by April, 2015.
- Standard Deduction Amount for Singles – If your filing status is single, the current standard deduction amount is $6,200. That is up from a standard tax deduction amount of $6,100 for 2013.
- Standard Deduction Amount for Joint Filers – If you tax filing status is married filing jointly, the standard deduction for this year is $12,400. The previous tax year’s standard deduction for joint filers was $12,200.
If you do not take the standard tax deduction, you may still get to claim a standard amount as a “personal exemption.” The 2014 personal exemption amount is $3,950. The personal exemption phases out for high income tax payers. Starting at $254,200, the personal exemption is reduced for single filers, and is phased out completely at $376,700. For married tax payers, the phaseout begins at $305,050 for 2014, and is phased out completely at $427,500.
Other 2014 Tax Numbers
Some of the other tax numbers that are adjusted by the IRS every year were changes as well for 2014.
- The gift tax exclusion is unchanged at $14,000 for 2014.
- The AMT exemption amount for 2014 is $52,800 for singles, and $82,100 for married filing jointly. This is up from $51,900 and $80,800 for the previous tax year.
- Estate Tax basic exclusion amount for 2014 is $5,340,000 for estates of decadents who die during 2014.