Instructions for Form 1040-C - Introductory Material


Table of Contents

Future developments.

For the latest information about developments related to Form 1040-C and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form1040c.

What's New

Use your 2013 tax return as a guide in figuring your 2014 tax, but be sure to consider the following.

Limitation on itemized deductions.    For tax year 2014, itemized deductions for taxpayers with adjusted gross income above $152,525 may be reduced.

Personal exemption amount increased for certain taxpayers.   For tax years beginning in 2014, the personal exemption amount is increased to $3,950 for taxpayers with adjusted gross incomes below $152,525. The personal exemption amount for taxpayers with adjusted gross incomes above this amount may be reduced.

Standard mileage rates.   The rate for business use of your vehicle is 56 cents per mile. The rate for use of your vehicle to get medical care or to move is 23½ cents per mile. The rate of 14 cents per mile for charitable use is unchanged.

Social security tax.   For 2014, the maximum amount of earned income (wages and net earnings from self-employment) subject to the social security tax is $117,000.

Adoption credit or exclusion.    For 2014, the maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $13,190. In order to claim either the credit or exclusion, your modified AGI must be less than $237,880.

Standard deduction.   If you do not itemize your deductions, you may be able to take the 2014 standard deduction. The basic standard deduction has increased for 2014. See Standard Deduction (Group I only), later.

Health care coverage.   When you file your 2014 tax return in 2015, you will need to (1) indicate on your return that you and your family had health care coverage throughout 2014, (2) claim an exemption from the health care coverage requirement for some or all of 2014, or (3) make a payment if you do not have coverage or an exemption(s) for all 12 months of 2014. For examples on how this payment works, go to www.IRS.gov/aca and click under the “Individuals & Families” section. You may want to consider this when figuring your “Other taxes” on Line 21 of the 2014 Form 1040-C. For general information on these requirements, go to www.IRS.gov/aca.

Advance payments of the Premium Tax Credit.   If you buy health care insurance through the Health Insurance Marketplace, you may be eligible for advance payments of the Premium Tax Credit to help pay for your insurance coverage. Receiving too little or too much in advance will affect your refund or balance due. Promptly report changes in your income or family size to your Marketplace. You may want to consider this when figuring your estimated taxes for 2014. For more information, go to www.IRS.gov/aca and see Publication 5120 and Publication 5121.


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