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United States Tax Changes for 2014

The big change for 2014 is the requirement to have health insurance coverage under the Affordable Care Act.

Health Care Individual Responsibility
You must now:

See the Instructions for Form 8965 for more information.

Premium Tax Credit
You may be eligible to claim the premium tax credit if you, your spouse, or a dependent enrolled in health insurance through the Health Insurance Marketplace. See Chapter 37 of Publication 17 for more information.

Advance Payments of the Premium Tax Credit
Advance payments may have been made to a health insurer to help pay for the insurance coverage of you, your spouse, or your dependent. If advance payments of the premium tax credit were made, you must file a 2014 return and Form 8962. See Chapter 37 of Publication 17 for more information.

Form 1095-A
If you, your spouse, or a dependent enrolled in health insurance through the Health Insurance Marketplace, you should have received Form 1095-A. Save any Form 1095-A received. The form(s) will help you figure your premium tax credit. Contact the Marketplace if you did not receive it. See Chapter 37 of Publication 17 for information about the premium tax credit.

Medicaid Waiver Payments
If you received certain payments under a Medicaid waiver program for caring for someone who lives in your home with you, you may be able to exclude the amounts from your income. See Chapters 12 and 36 of Publication 17. If you reported the payments on your return for 2013 or an earlier year, see Certain Medicaid Waiver Payments May Be Excludable From Income. You may want to file Form 1040X to amend the prior year return.

Extension of Expired Tax Benefits
Certain tax benefits that expired at the end of 2013 were extended by Congress throughout the 2014 tax year, including:

Pell Grants and Other Scholarships or Fellowships
Choosing to include otherwise tax-free scholarships or fellowships in your income can increase an education credit and lower your total tax or increase your refund. See the Instructions for Form 8863 and Publication 970 – Tax Benefits for Education, for more information (the 2014 version of Pub. 970 is not available on the IRS website as of Jan. 20, 2015).

Personal Exemption Amount Increase for Certain Taxpayers
The personal exemption has increased to $3,950 for 2014. But it is reduced if adjusted gross income is more than:

See Chapter 3 of Publication 17.

Standard Mileage Rates

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