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Plan Ahead – 2014 Estimated Tax Brackets

October 23, 2013

Inflation causes a rise in the price levels of goods and services over a period of time and lowers taxpayers’ purchasing power per unit of money. The IRS acknowledges the effect of yearly inflation, and implements mandatory upward inflation-adjustments each year. CCH has recently released estimated ranges for each 2014 tax bracket together with certain inflation-sensitive tax figures, such as personal exemption, the standard deduction, and tax benefits.

To help taxpayers with better tax planning for 2014 AG Tax professionals have prepared a brief summary on these estimated figures. Please note that these rates as federal, not state.

Projected 2014 Tax Brackets

Tax Rates Married Filing Jointly/ Surviving Spouse Head of household Single Married Filing Separately
10% $0 – $18,150 $0 – $12,950 $0 – $9,075 $0 – $9,075
15% $18,150 – $73,800 $12,950 – $49,400 $9,075 – $36,900 $9,075 – $36,900
25% $73,800 – $148,850 $49,400 – $127,550 $36,900 – $89,350 $36,900 – $74,425
28% $148,850 – $226,850 $127,550- $206,600 $89,350 – $186,350 $74,425 – $113,425
33% $226,850 – $405,100 $206,600 -$405,100 $186,350 – $405,100 $113,425 – $202,550
35% $405,100 – $457,600 $405,100- $432,200 $405,100 – $406,750 $202,550 – $228,800
39.6% Above $457,600 Above $432,000 Above $406,750 Above $228,800

Other 2014 Projected Exemptions, Deductions and Thresholds

Projected Figures Married Filing Jointly/ Surviving Spouse Head of household Single Married Filing Separately
Personal Exemption $3590 per person $3,590 per person $3,590 per person $3,590 per person
Standard Deduction $12,400 $9,100 $6200 $6,200
Itemized Deductions Phase-out AGI Thresholds $305,050 $279,650 $254,200 $152,525
AMT Exemptions Thresholds $82,100 $52,800 $52,800 $41,050
Roth IRA Contribution Limits – AGI Thresholds $181,000 $114,000 $114,000 $114,000
Traditional IRA Contribution – Maximum Amounts $5,500 $5,500 $5,500 $5,500
Student Loan Interest Deduction Phase-out AGI Thresholds $160,000 $80,000 $80,000 $80,000
Annual Gift Tax Exemption $14,000 $14,000 $14,000 $14,000
Lifetime Gift Tax Exemption $5,340,000 $5,340,000 $5,340,000 $5,340,000
Foreign Gift Exemption $15,358 per person $15,358 per person $15,358 per person $15,358 per person

Taxpayers in the higher tax brackets will also be facing the 3.8% Surtax/ NIIT (details) and a 0.9% Medicare contributions tax on earned income. The 3.8% surtax is bound to affect the tax bracket of an U.S taxpayer. It is advisable that with 2014 just one quarter away, taxpayers should schedule a meeting with their tax advisors and get their tax plans in place.

AG Tax LLP Can Help

If you have any tax-related queries, need assistance with tax planning or filing your tax returns please contact us. Our team comprises of highly experienced tax professionals with extensive knowledge of U.S. and Canadian tax laws as well as cross-border compliance

Furthermore, as a full service accounting firm, AG Tax assures complete assistance with even your most complex tax needs.

We can assist with:

  • Canadian Personal and corporate tax returns
  • Cross Border Taxation and Business Planning
  • U.S. Personal and Corporate Taxation
  • Disclosure of Foreign Assets and other information filings
  • Retirement planning
  • State Sales Tax & E-commerce Taxation
  • Estate Planning, Inheritance tax advice

To obtain a quote or to arrange for a consultation to discuss your tax related queries, please contact us at:

  •  416-238-5920 (Greater Toronto Area, ON)
  • 604-538-8735 (Greater Vancouver Area, BC)
  • 780-702-2732 (Greater Edmonton Area, AB)

Disclaimer: The information in this publication is accurate as of the time of its publication. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. The information provided is for general information purposes only and should not be acted upon without seeking professional advice. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. A client relationship is not created by the transmission of information. A client relationship is only formed with our firm when a scope and engagement letter signed by the firm and the potential client detailing the terms of engagement is present.

ABOUTAylett Grant Tax, LLP
With offices across Canada, we are positioned to manage and process the full scope of your Canadian, US and US Canada cross-border tax filing needs.
OFFICEVancouver
12752 28th Ave, Surrey, BC, V4A 2P4
OFFICEEdmonton
104–4220 98 St NW Edmonton AB, T6E 6A1
ABOUTAG Tax LLP
With offices across Canada, we are positioned to manage and process the full scope of your Canadian, US and US Canada cross-border tax filing needs.
OFFICEVancouver
12752 28th Ave, Surrey, BC, V4A 2P4
OFFICEEdmonton
104–4220 98 St NW Edmonton AB, T6E 6A1

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