Tri-Star Benefits Update
January 2015
IRS Releases 2014 Version of Publications 502 and 503
The IRS has released the latest versions of Publications 502 and 503 for use in preparing 2014 tax returns. Publication 502 describes the medical and dental expenses that are deductible by taxpayers on their 2014 federal income tax returns. Publication 503 explains the requirements that taxpayers must meet in order to claim the dependent care tax credit (DCTC) under Code ยง 21 for child and dependent care expenses.

These new 2014 Publications are significantly similar to the 2013 Publications. Important dollar amounts have been revised to reflect their 2014 inflation-adjusted values and a few other changes have been made. The standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 23.5 cents per mile. Revisions were made to Publication 502 to include the premium tax credit that is available to those qualifying individuals receiving Exchange coverage. You may be eligible to claim the premium tax credit if you, your spouse, or a dependent is enrolled in health insurance through the Health Insurance Marketplace. Also, outdated content on the now-expired COBRA premium subsidy and health coverage tax credit has been deleted. The 2014 version of Publication 503 was revised to provide additional examples clarifying the circumstances under which married individuals filing separate returns are treated as unmarried for purposes of the DCTC. In addition, you must include the name and taxpayer identification number (generally the social security number) of each qualifying person on line 2 of Form 2441, Child and Dependent Care Expenses.

IRS Publication 502 (Medical & Dental Expenses)

IRS Publication 503 (Child & Dependent Care Expenses)

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