For tax year 2014 and generally for tax returns filed in 2014, the tax rate of 39.6 percent remains for individuals whose income exceeds $400,000 ($450,000 for married taxpayers filing a joint return). The other marginal rates — 10, 15, 25, 28, 33 and 35 percent — remain the same as in prior years.
- The standard deduction rises to $6,200 ($12,400 for married couples filing jointly), up from $6,100 ($12,200 for married couples filing jointly) for tax year 2013.
- The American Taxpayer Relief Act of 2012 added a limitation for itemized deductions claimed on 2014 returns of individuals with incomes of $254,200 or more ($305,050 for married couples filing jointly).
- The personal exemption rises to $3,950, up from the 2013 exemption of $3,900. However beginning in 2014, the exemption is subject to a phase-out that begins with adjusted gross incomes of $254,200 ($305,050 for married couples filing jointly). It phases out completely at $376,700 ($427,550 for married couples filing jointly.)
- The Alternative Minimum Tax exemption amount for tax year 2014 is $52,800 ($82,100 for married couples filing jointly), set by the American Taxpayer Relief Act of 2012, which indexes future amounts for inflation.
- The maximum Earned Income Credit amount is $6,143 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,044 for tax year 2013.
- Estates of decedents who die during 2014 have a basic exclusion amount of $5,340,000, up from a total of $5,250,000 for estates of decedents who died in 2013.
- For tax year 2014, the monthly limitation regarding the aggregate fringe benefit exclusion amount for transit passes and transportation in a commuter highway vehicle is $250, up from $245 for tax year 2013 (the legislation provided a retroactive increase from the $130 limit that had been in place).