There are several important changes to tax laws in the United States that will affect your 2014 tax return.

  • Pell Grants can now be allocated as living expenses up to the full amount of your actual living expenses, even if your college applied the grants to tuition and fees. The amount will then become taxable income. Since this can get tricky, it is a good idea to consult with a tax professional.
  • Virtual Currency such as Bitcoin is now considered taxable income. You should calculate the fair market value to determine your income amount.
  • Unemployment benefits  have always been considered taxable income, but now any additional unemployment benefits paid by a former employer will also be considered taxable income.
  • Tax Brackets adjusted for inflation:

    • $228,800 for married filing separately
    • $406,750 for single
    • $432,200 for head of household
    • $457,600 for married filing jointly

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Keeping up with tax law changes can be complicated and confusing. If you need assitance preparing and filing your 2014 federal tax return or Missouri tax return, call STL Tax at (314) 645-1614.