J.K. Lasser's Your Income Tax 2015: For Preparing Your 2014 Tax Return

What’s New for 2014

For an update on tax developments and a free download of the e-Supplement to this book, visit us online at www.jklasser.com.

Tax News for 2014

Item—	Highlight—
Tax rate brackets and preferential rates for capital gains/qualified dividends	The 10%, 15%, 25%, 28%, 33% and 35% brackets for 2014 ordinary income reflect an inflation adjustment, and there is a top bracket of 39.6% that applies if taxable income exceeds $406,750 for single taxpayers, $432,200 for heads of households, $457,600 for married persons filing jointly and qualifying widows/widowers, and $228,800 for married taxpayers filing separate returns (1.2).
	Qualified dividends (4.2) and long-term capital gains (5.3) may escape tax entirely under the 0% rate, or be subject to capital gain rates of 15% or 20% depending on filing status, taxable income, and how much of the taxable income consists of qualified dividends and eligible long-term gains. The 20% capital gain rate has the same taxable income thresholds as the 39.6% ordinary income rate shown above, that is, either $457,600, $432,200, $406,750, or $228,800, depending on filing status. The 0%, 15%, and 20% rates do not apply to long-term gains subject to the 28% rate (collectibles and taxed portion of small business stock) or the 25% rate for unrecaptured real estate depreciation (5.3).
Individual health care mandate	Starting in 2014, you are required to have minimum essential health coverage through an employer plan, a government ...