Bloomberg BNA Predicts Inflation-Adjusted Tax Rates

Bloomberg BNA has released its annual projections of U.S. tax rates for 2014.

The company releases the projections to give tax planners and practitioners more time and can get a jump start to develop the appropriate tax strategies for their clients or organizations. 

The document contains information and calculations for a wide variety of tax figures, including inflation-adjusted exemption amounts, phase-outs and more, along with new information on figures related to the implementation of the Patient Protection and Affordable Care Act.
Bloomberg BNA’s projections also take into account significant changes to the Tax Code made by the American Taxpayer Relief Act of 2012, the fiscal cliff deal legislation that finally passed Congress around New Year’s Day, adding a new marginal top tax rate of 39.6 percent for taxpayers whose incomes exceed an inflation-adjusted threshold.

“The threshold is expected to begin at $457,600 for married taxpayers filing jointly and $406,750 for unmarried individuals in 2014,” according to a blog post by Bloomberg BNA tax law editor Stephanie Fiumara explaining the projections. “ATRA also re-instituted the ‘Pease’ limitation on itemized deductions and indexed it for inflation. The Pease limitation is expected to impact taxpayers with AGI above $305,050 (married filing jointly) or $254,200 (unmarried) for 2014. The alternative minimum tax (AMT) was also indexed for inflation by ATRA, and Bloomberg BNA has included projected amounts for the threshold amount used to calculate the tentative minimum tax, AMT exemptions and exemption phase-out levels.”

For the full report, visit www.bna.com/projected-tax-rates/.