The IRS recently announced final tax forms and instructions for tax year 2014, including Form 1040 and related forms. Highlights include key health coverage changes that went into effect in 2014, such as the premium assistance credit and other changes.
SCHEDULE A, ITEMIZED DEDUCTIONS
Medical and dental expenses – the standard mileage rate for medically-related use of an auto is 23.5¢ per mile.
Unreimbursed employee expenses – the standard mileage rate for business travel is 56¢ per mile.
Itemized deductions limit. Adjusted gross incomes in excess of the $305,050 for married filing joint or a surviving spouse, $279,650 for head of household, $254,200 for single individuals, and $152,525 for married filing separately, could result in having deductions reduced.
FORM 1040—SCHEDULE B, INTEREST AND ORDINARY DIVIDENDS
Excludable interest on Series EE or Series I U.S. savings bonds. The exclusion for education related savings bond interest begins phases out at modified AGI above $76,000 ($113,950 on a joint return).
SCHEDULE C, PROFIT OR LOSS FROM BUSINESS
Car and truck expenses – the standard mileage rate for business travel is 56¢ per mile.
Depreciation and section 179 expense. See below.
FORM 4562, DEPRECIATION AND AMORTIZATION
The maximum section 179 expense deduction is $500,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $2 million.
Special depreciation allowance. For qualified property acquired and placed in service after 2011 and before Jan. 1, 2015 may qualify for a 50% bonus first-year depreciation allowance.
Listed property. First-year luxury auto depreciation deduction limits are $3,160 for autos and $3,460 for light trucks or vans.
SCHEDULE D, CAPITAL GAINS AND LOSSES
Form 1099-B. Form 1099-B has been redesigned so that information is reported in boxes that are numbered to match the corresponding line and column on Form 8949 (Sales and other Dispositions of Capital Assets). To make it easier to fill out Form 8949, a new box was added at the top of Form 1099-B.
SCHEDULE E, RENTALS AND ROYALTIES
Standard mileage rate. The 2014 standard mileage rate for miles driven in connection with the taxpayer’s rental activities is 56¢ per mile.
SCHEDULE F, PROFIT OR LOSS FROM FARMING
Car and truck expenses – the 2014 standard mileage rate for business travel is 56¢ per mile.