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Home » Taxes

2014 Tax Brackets & Standard Deductions Increased for Inflation

Last updated by on 6 Comments

The IRS released it’s 2014 tax bracket rates, and there will be a number of inflation adjustments for the tax brackets and for standard deductions.

You may remember there were some noticeable changes to the 2013 tax brackets, as a result of the American Taxpayer Relief Act (aka “the fiscal cliff deal“) – a new 39.6% top tax bracket among the most notable.

Also, for the first time in history, the IRS will now recognize same sex marriage for tax rate purposes. This is retroactive back to 2010 and every year since for those who are legally married by state law, regardless of current state of residence.

This would be a good, time to estimate what your modified adjusted gross income might be next year and adjust your tax allowances so that you don’t end up getting penalized for owing too much in taxes or getting too large of a refund (which is essentially lending your money to the government, interest-free).

Before getting to the tax bracket changes, it’s important to know that tax brackets represent the income tax rate you owe for the portion of your income that falls into that bracket. As an example with the 2014 tax brackets, if you are single, the tax rate on your first $9,075 of income is 10%, income between $9,075 and $36,900 is taxed at 15%, and so on, up the ladder.

Many wrongly assume that if your total income peaks at the 35% tax bracket, for example, all of your income is taxed at that rate – not so. With that in mind, here are the 2014 tax brackets.

2014 Tax Brackets

2014 Tax Brackets for Singles:

2014 tax brackets10% – $0-$9,075 (up from $8,925)
15% – $9,075-$36,900 (up from $8,950-36,250)
25% – $36,900-$89,350 (up from $36,250-$87,850)
28% – $89,350-$186,350 (up from $87,850-$183,250)
33% – $186,350-$405,100 (up from $183,250-$398,350)
35% – $405,100-$406,750+ (up from $398,350-$400,000)
39.6% – $406,750+ (up from $400,000)

2014 Tax Brackets for Married Filing Jointly:

10% – $0-$18,150 (up from $0-$17,850)
15% – $18,150-$73,800 (up from $17,850-$72,500)
25% – $73,800-$148,850 (up from $72,500-$146,400)
28% – $148,850-$226,850 (up from $146,400-$223,050)
33% – $226,850-$405,100 (up from $223,050-$398,350)
35% – $405,100-$457,600 (up from $388,350-$450,000)
39.6% – $457,600+ (up from $450,000)

2014 Tax Brackets for Married Filing Separately:

10% – $0-$9,075 (up from $0-$8,925)
15% – $9,075-$36,900 (up from $8,950-$36,250)
25% – $36,900-$74,425 (up from $36,250-$73,200)
28% – $74,425-$113,425 (up from $73,200-$111,525)
33% – $113,425-$202,550 (up from $111,525-$199,175)
35% – $202,550-$228,800 (up from $199,175-$225,000)
39.6% – $228,800+ (up from $225,000+)

2014 Tax Brackets for Head Of Household:

10% – $0-$12,950 (up from $0-$12,750)
15% – $12,950-$49,400 (up from $12,750-$48,600)
25% – $49,400-$127,550 (up from $48,600-$125,450)
28% – $127,550-$206,600 (up from $125,450-$203,150)
33% – $206,600-$405,100 (up from $203,150-$398,350)
35% – $405,100-$432,200 (up from $398,350-$425,000)
39.6% – $432,200+ (up from $425,000+)

2014 Standard Deductions

Standard tax deductions will lower your taxable income, if you don’t decide to itemize taxes. The 2014 standard deductions have also increased due to inflation adjustments:

  • $6,200 for single filers & married filing separately (up from $6,100)
  • $12,400 for married filers (up from $12,200)
  • $9,100 for head of household (up from $8,950)
  • $1,000 for dependents (up from $1,000)

Tax Bracket Discussion:

  • Which tax bracket will you top out in for 2013?
  • What do you think about the 2014 tax rate changes?

About the Author
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6 Comments »
  • Kate says:

    I think it’s funny that tax brackets and standard deductions increase because of inflation but 401k and IRA contributions stay the same since there’s, wait a minute, no inflation? Is the government talking out of both sides of its mouth? Oh, I get it, there’s inflation that applies only to the government but inflation doesn’t exist for the rest of us. Right.

  • RNT says:

    What about exemptions, for those of us that itemize? Are they going up, too?

  • Ginger says:

    Do you know what the personal exemption will be?

    • G.E. Miller says:

      The personal exemption rises to $3,950, up from the 2013 exemption of $3,900. However, 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). The 2013 exemption amount was $51,900 ($80,800 for married couples filing jointly).

  • aaron says:

    I’m still trying to guess the ending for this year. I got a huge raise in the spring which usually means too much is pulled out through most of the year and I would get a nice return, but this time I may have jumped the 28% up to the 33% and be short from pre-raise deductions. For 2014, I expect to be around the line for 33% again.

  • monty says:

    Hi,

    What if I make $40,000 a year and have my wife not working and 4 small children (5 dependents) and get paid 100% no deductions throughout the year as independent on 10-99.

    Can I still expect a credit return?

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