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2014 Federal Tax Rates, Personal Exemptions, and Standard Deductions

 

2014 Federal Tax Rates, Personal Exemptions, and Standard Deductions

IRS Tax Brackets and Deduction Amounts for Tax Year 2014

Elizabeth Rosen
by Elizabeth Rosen, Contributor

Below are the tax rates and related numbers that you will need to prepare your 2014 income tax return, which is due by April 15, 2015.

2014 Income Tax Brackets

There are 7 tax brackets for the Federal income tax: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe is based on your filing status and income level.

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It's important to understand that moving into a higher tax bracket does not mean that all of your income will be taxed at that higher rate. Rather, only the money that you earn within a particular bracket is subject to that particular tax rate.

Single:

Taxable Income Tax Rate
$0 to $9,075 10%
$9,076 to $36,900 $907.50 plus 15% of the amount over $9,075
$36,901 to $89,350 $5,081.25 plus 25% of the amount over $36,900
$89,351 to $186,350 $18,193.75 plus 28% of the amount over $89,350
$186,351 to $405,100 $45,353.75 plus 33% of the amount over $186,350
$405,101 to $406,750 $117,541.25 plus 35% of the amount over $405,100
$406,751 or more $118,118.75 plus 39.6% of the amount over $406,750

 

Married Filing Jointly or Qualifying Widow(er):

Taxable Income Tax Rate
$0 to $18,150 10%
$18,151 to $73,800 $1,815 plus 15% of the amount over $18,150
$73,801 to $148,850 $10,162.50 plus 25% of the amount over $73,800
$148,851 to $226,850 $28,925 plus 28% of the amount over $148,850
$226,851 to $405,100 $50,765 plus 33% of the amount over $226,850
$405,101 to $457,600 $109,587.50 plus 35% of the amount over $405,100
$457,601 or more $127,962.50 plus 39.6% of the amount over $457,600

 

Married Filing Separately:

Taxable Income Tax Rate
$0 to $9,075 10%
$9,076 to $36,900 $907.50 plus 15% of the amount over $9,075
$36,901 to $74,425 $5,081.25 plus 25% of the amount over $36,900
$74,426 to $113,425 $14,462.50 plus 28% of the amount over $74,425
$113,426 to $202,550 $25,382.50 plus 33% of the amount over $113,425
$202,551 to $228,800 $54,793.75 plus 35% of the amount over $202,550
$228,801 or more $63,981.25 plus 39.6% of the amount over $228,800

 

Head of Household:

Taxable Income Tax Rate
$0 to $12,950 10%
$12,951 to $49,400 $1,295 plus 15% of the amount over $12,950
$49,401 to $127,550 $6,762.50 plus 25% of the amount over $49,400
$127,551 to $206,600 $26,300 plus 28% of the amount over $127,550
$206,601 to $405,100 $48,434 plus 33% of the amount over $206,600
$405,101 to $432,200 $113,939 plus 35% of the amount over $405,100
$432,201 or more $123,424 plus 39.6% of the amount over $432,200

 

2014 Personal Exemption Amounts

For tax year 2014, the personal exemption amount is $3,950.

When preparing your Federal tax return, you can claim one (1) personal exemption for yourself and one (1) for your spouse, if married. However, if someone else can declare you as a dependent on their tax return, then you are not allowed to claim a personal exemption for yourself.

The personal exemption amount starts to phase out for individuals with $254,200 AGI (adjusted gross income) and married joint filers with $305,050 AGI. It completely phases out at $376,700 for individuals and $427,550 for married joint filers.

READ: Claiming Personal and Dependent Exemptions

2014 Standard Deduction Amounts

There are 2 main types of tax deductions: the standard deduction and itemized deductions. The standard deduction, which is subtracted from your AGI, reduces your taxable income and usually changes each year to reflect inflation.

Filing Status Standard Deduction
Single $6,200
Married Filing Jointly $12,400
Married Filing Separately $6,200
Head of Household $9,100

 

READ: Who Has to File a Federal Income Tax Return?