1. The Personal Exemption for 2014 is $3,950;
Personal Exemptions start to Phase Out for Single with AGI of $254,500 and Married with AGI of $305,050.
2. Itemized Deductions start to Phase Out for Singles with AGI of $254,200 and Married with AGI of $305,050.
3. $1,000 tax credit for each dependent child under age 17 in 2014.
The credit is phased out by $50 for every $1,000 above the following thresholds:
a) $75,000 for single taxpayers
b) $110,000 for married joint filing
Self-employed .......................... Tax of 15.3 percent on earnings through $117,000
Tax of 2.9 percent on earnings over $117,000*
Employers and employees ....................................... Each pay half
Total taxes paid by Bolen, a single sole proprietor who earned $80,000 taxable income
*Starting in 2014, all wages and self-employed income in excess of $200,000 for single individuals and $250,000 for married taxpayers (threshold amounts) will be subject to an additional 0.9 percent Medicare surcharge on the excess earnings over these threshold amounts. In addition, investment earnings, such as capital gains, dividends, interest, and rents, will be hit with a 3.8 percent Medicare surcharge on the lesser of the amount of these investments or the excess earnings over the threshold amounts.
18.191.165.86