Bloomberg BNA Releases 2014 Projected U.S. Tax Rates

Arlington, Va. (September 27, 2013) - Bloomberg BNA, a leading source of legal, regulatory, and tax information for professionals, has released its 2014 Projected U.S. Tax Rates special report offering estimated ranges for each 2014 income tax bracket and other important tax information, such as standard deduction amounts, AMT projections, and more.

With the IRS not due to release annual inflation adjustments until later in the fall, the release of this report provides tax preparers and advisers with the opportunity to initiate tax preparation, planning, and year-end estimation sooner in the year in order to help develop appropriate strategies for their clients.  The 2014 Projected U.S. Tax Rates has been calculated by Bloomberg BNA's tax practitioners using the formula provided in IRC §1(f).

"With the 2014 edition of Projected U.S. Tax Rates, Bloomberg BNA has once again created an extremely accurate and highly useable report designed to provide practitioners with the concrete information they need to get a head start on preparation,"  said George Farrah, Executive Editor of Tax & Accounting at Bloomberg BNA. "The report, which has been peer reviewed and tested by multiple tax experts at Bloomberg BNA, provides projections that are extremely valuable for practitioners."

Among the new areas covered in the 2014 Projected U.S. Tax Rates, which is laid out in a simple-to-use chart format, are tax items under the Patient Protection and Affordable Care Act (PPACA) that are set to take effect for the first time in 2014, including:

• Health flexible spending arrangements that are now indexed for inflation, with the limitation expected to be $2,500 for 2014.
• A penalty on individual taxpayers for failure to maintain minimum essential health coverage, which will amount to $95 for 2014 and increase sharply in later years.
• A premium assistance credit that takes effect in 2014, with the amounts used to determine the limitation on the increase of tax for excess advance payments being: $600 for households with an income less than 200 percent of the poverty line; $1,500 for households with an income of at least 200 percent, but less than 300 percent, of the poverty line; and $2,500 for households with an income of at least 300 percent, but less than 400 percent, of the poverty line.

Bloomberg BNA's early projections also take into account significant changes to the tax code made by the American Taxpayer Relief Act of 2012 (ATRA), including:

• A new inflation-adjusted top marginal tax rate of 39.6 percent, which is expected to begin at $457,600 for married taxpayers filing jointly and $406,750 for unmarried individuals in 2014.
• The re-institution of the "Pease" limitation on itemized deductions - now indexed for inflation - which is expected to impact taxpayers with Adjusted Gross Income above $305,050 (married filing jointly) or $254,200 (unmarried) for 2014.
• The indexing of the alternative minimum tax (AMT) for inflation, including projected amounts for the threshold used to calculate the tentative minimum tax, AMT exemptions, and exemption phase-out levels.