New year, new numbers
Income tax brackets for 2014 are a little wider. For couples filing jointly, the l5-percent bracket goes up to $73,800; the 25-percent bracket to $148,850 and the 28-percent to $226,850. The 33-percent bracket goes up to $405,100, and the 35 percent to $457,600; over that, the top marginal rate is 39.6 percent.
Standard deductions are up, too. Couples get $12,400; if one is over 65, it's $13,600; if both are, it's $14,800. The blind get $1,200 more. Personal exemptions are $3,950 for individuals and their dependents, but this is phased out at higher incomes. For couples filing jointly, the exemption is cut 2 percent for every $2,500 of AGI over $305,050. A similar phase-out affects itemized deductions, cutting them 3 percent over the same thresholds.
The AMT exemption jumps to $82,100 for couples, and the phase-out zone for couples starts at $156,500. The 20-percent top rate on dividends and long-term gains starts at $457,600.
For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.
He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.
An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.
