2014 Federal Income Tax Rates and Credits

2014 Federal Income Tax Rates

Understanding or at least being aware of Federal Income Tax rates is an important step to protect and maximize your retirement income.  This Individual Income Tax Rate Chart will help.

2014 Federal Income Tax Rates for Individuals

Download the 2014 Tax Digest PDF For additional information regarding:

  • Individual income tax rates
  • Deductions & Tax Credits
  • Social Security/ Medicare rates
  • Health Savings Accounts
  • Retirement Plan Contribution Limits including Traditional and Roth IRAs  

PDF 2013 Tax Digest



Special Tax Code Provisions for Military Members

As tax season approaches, I wanted to take a moment to remind you of some unique benefits that are available to the brave men and women serving in our Armed Services.

 Heroes Earned Retirement Opportunities (HERO) Act: On May 29, 2006 President Bush signed into law the Heroes Earned Retirement Opportunities (HERO) Act. The HERO Act allows members of the Armed Forces serving in a combat zone to include nontaxable combat pay as compensation for purposes of determining traditional IRA or Roth IRA contribution amounts.

Prior to this act, because combat pay is nontaxable and excluded from gross income, a serviceman or servicewoman with only combat pay was unable to make an IRA contribution. 

Additional time to make traditional IRA or Roth IRA contributions:Generally, traditional IRA or Roth IRA contributions are due by the tax filing deadline (April 17, 2012 for the 2011 tax season), not including extensions. However, military members and their spouses may qualify for a deadline extension of up to 180 days after the last day served in a combat zone, hazardous duty area, or certain other deployments, plus the number of days that were left to make the IRA contribution at the time service in the combat zone began. The extension doesn’t just apply to traditional IRA or Roth IRA contributions, but also to filing tax returns, paying taxes, and claiming a tax refund. 

Heroes Earnings Assistance and Relief Tax Act (HEART) Act:

On June 17, 2008 President Bush signed into law the Heroes Earnings Assistance and Relief Tax (HEART) Act. One of the major provisions of the HEART Act relates to the ability to roll over Service members’ Group Life Insurance (SGLI) payments to a Roth IRA or a Coverdell ESA. 

The Act permits an individual who receives a military death gratuity or SGLI to contribute the funds to a Roth IRA and/or one or more Coverdell education savings accounts. In addition, the contributions would be treated as rollover contributions and not subject to normal income or contribution limits. The contribution must be made within one year from the date the taxpayer receives the military death gratuity or SGLI payment. This provision is generally effective for payments made on accounts of deaths from injuries occurring on or after June 17, 2008. 

If you have any questions, talk to your financial or tax professional.

IRS extends tax filing deadline to April 17

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Taxpayers will have until Tuesday, April 17, 2012 to file their 2011 tax returns and pay any tax due. This is because April 15 falls on a Sunday, and Emancipation Day, a holiday observed in the District of Columbia, falls this year on Monday, April 16. According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. Taxpayers requesting an extension of time to file their 2011 returns will have until October 15 to file, although an extension of time to file is not an extension of time to pay any taxes due.

In addition, IRA contributions for 2011 must be made by April 17, 2012.  The extended tax return filing date (October 15) does not extend the deadline for making 2011 IRA contributions.