Source: https://www.irs.gov/irb/2014-47_IRB/ar14.html
Timestamp: 2017-02-24 05:48:45
Document Index: 388716682

Matched Legal Cases: ['§ 36', '§ 36', '§ 36', '§ 1', '§ 1', '§ 23', '§ 23', '§ 23', '§ 24', '§ 24', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 32', '§ 32', '§ 36', '§ 42', '§ 45', '§ 55', '§ 55', '§ 1', '§ 63', '§ 63', '§ 68', '§ 125', '§ 132', '§ 132', '§ 135', '§ 137', '§ 137', '§ 146', '§ 1', '§ 1', '§ 1', '§ 213', '§ 220', '§\n221', '§ 221', '§ 512', '§ 513', '§ 170', '§ 877', '§ 877', '§ 877', '§ 2010', '§ 2032', '§ 4161', '§ 4261', '§ 4261', '§ 4261', '§ 4261', '§ 6039', '§ 6323', '§ 6323', '§ 6334', '§ 6601', '§ 6166', '§ 7702']

Internal Revenue Bulletin - November 17, 2014 - Rev. Proc. 2014–61
Internal Revenue Bulletin: 2014-47 November 17, 2014 Rev. Proc. 2014–61
1(a)–(e)
.02 Unearned Income of Minor Children Taxed as if Parent's Income (“Kiddie Tax”).
.05 Hope Scholarship and Lifetime Learning Credits
.07 Refundable Credit for Covertage Under a Qualified Health Plan
.08 Rehabilitation Expenditures Treated as Separate New Building
.09 Low-Income Housing Credit
.10 Employee Health Insurance Expense of Small Employers
.11 Exemption Amounts for Alternative Minimum Tax
.12 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax”
.25 Eligible Long-Term Care Premiums
.26 Medical Savings Accounts
.27 Interest on Education Loans
.28 Treatment of Dues Paid to Agricultural or Horticultural Organizations
.29 Insubstantial Benefit Limitations for Contributions Associated With Charitable Fund-Raising Campaigns
.30 Expatriation to Avoid Tax
.31 Tax Responsibilities of Expatriation
.32 Foreign Earned Income Exclusion
.33 Unified Credit Against Estate Tax
.34 Valuation of Qualified Real Property in Decedent's Gross Estate
.35 Annual Exclusion for Gifts
.36 Tax on Arrow Shafts
.37 Passenger Air Transportation Excise Tax
.38 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures
.39 Notice of Large Gifts Received from Foreign Persons
.40 Persons Against Whom a Federal Tax Lien Is Not Valid
.41 Property Exempt from Levy
.42 Interest on a Certain Portion of the Estate Tax Payable in Installments
.43 Attorney Fee Awards
.44 Periodic Payments Received under Qualified Long-Term Care Insurance Contracts or under Certain Life Insurance Contracts
Section 1401 of the Patient Protection and Affordable Care Act of 2010, Pub. L. No. 111–148, 124 Stat. 119 (PPACA), added
§ 36B to the Internal Revenue Code. Section 36B creates a refundable tax credit (“the premium tax credit”) for eligible individuals
and families who purchase health insurance through a Health Insurance Marketplace. Taxpayers who meet certain criteria may
have some or all of their estimated premium tax credit paid in advance directly to the insurance company to assist with the
cost of monthly premiums. These amounts are called advance credit payments. The amount of a taxpayer’s premium tax credit
allowed for a taxable year is reduced by the amount of the advance credit payments made for the taxpayer during the year.
If a taxpayer’s advance credit payments for a taxable year exceed the premium tax credit allowed for the year, the taxpayer
owes the excess as an additional tax, subject to a limitation in § 36B(f)(2)(B). The limitation amounts on the increase of
tax for excess advance credit payments under § 36B(f)(2)(B) are adjusted for inflation for taxable years beginning after December
31, 2014. The U.S. Department of the Treasury and the IRS will issue future guidance as necessary to provide the applicable
inflation adjusted items under section 36B(b)(3)(A)(ii) that are used to determine (1) a taxpayer’s premium assistance amount
under section 36B(b)(2), and (2) the required contribution percentage under section 36B(c)(2)(C)(i)(II) for determining the
employer-sponsored minimum essential coverage.
Over $411,500 not over $439,000
Over $411,500 not over $413,200
Over $205,750 not over $232,425
.02 Unearned Income of Minor Children Taxed as if Parent’s Income (the “Kiddie Tax”). For taxable years beginning in 2015, the amount in § 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income
referenced in § 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child’s gross income for 2015 must be more than
.03 Adoption Credit. For taxable years beginning in 2015, under § 23(a)(3) the credit allowed for an adoption of a child with special needs is
$13,400. For taxable years beginning in 2015, under § 23(b)(1) the maximum credit allowed for other adoptions is the amount
of qualified adoption expenses up to $13,400. The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers
with modified adjusted gross income in excess of $201,010 and is completely phased out for taxpayers with modified adjusted
gross income of $241,010 or more. (See section 3.19 of this revenue procedure for the adjusted items relating to adoption
.04 Child Tax Credit. For taxable years beginning in 2015, the value used in § 24(d)(1)(B)(i) to determine the amount of credit under § 24 that
may be refundable is $3,000.
(1) For taxable years beginning in 2015, the Hope Scholarship Credit under § 25A(b)(1), as increased under § 25A(i) (the American
Opportunity Tax Credit), is an amount equal to 100 percent of qualified tuition and related expenses not in excess of $2,000
plus 25 percent of those expenses in excess of $2,000, but not in excess of $4,000. Accordingly, the maximum Hope Scholarship
Credit allowable under § 25A(b)(1) for taxable years beginning in 2015 is $2,500.
(2) For taxable years beginning in 2015, a taxpayer’s modified adjusted gross income in excess of $80,000 ($160,000 for a
joint return) is used to determine the reduction under § 25A(d)(2) in the amount of the Hope Scholarship Credit otherwise
allowable under § 25A(a)(1). For taxable years beginning in 2015, a taxpayer’s modified adjusted gross income in excess of
$55,000 ($110,000 for a joint return) is used to determine the reduction under § 25A(d)(2) in the amount of the Lifetime Learning
Credit otherwise allowable under § 25A(a)(2).
(1) In general. For taxable years beginning in 2015, the following amounts are used to determine the earned income credit under § 32(b).
as adjusted for inflation for taxable years beginning in 2015.
(2) Excessive Investment Income. For taxable years beginning in 2015, the earned income tax credit is not allowed under § 32(i) if the aggregate amount of
certain investment income exceeds $3,400.
.07 Refundable Credit for Coverage Under a Qualified Health Plan. For taxable years beginning in 2015, the limitation on tax imposed under § 36B(f)(2)(B) for excess advance credit payments
.09 Low-Income Housing Credit. For calendar year 2015, the amount used under § 42(h)(3)(C)(ii) to calculate the State housing credit ceiling for the low-income
housing credit is the greater of (1) $2.30 multiplied by the State population, or (2) $2,680,000.
.10 Employee Health Insurance Expense of Small Employers. For taxable years beginning in 2015, the dollar amount in effect under § 45R(d)(3)(B) is $25,800. This amount is used under
For taxable years beginning in 2015, under § 55(b)(1), the excess taxable income above which the 28 percent tax rate applies
For taxable years beginning in 2015, the amounts used under § 55(d)(3) to determine the phaseout of the exemption amounts
.12 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax.” For taxable years beginning in 2015, for a child to whom the § 1(g) “kiddie tax” applies, the exemption amount under §§
for the taxable year, plus (2) $7,400.
Accountable Plans. For calendar year 2015, an eligible employer may pay certain welders and heavy equipment mechanics an amount of up to $17
(2) Dependent. For taxable years beginning in 2015, the standard deduction amount under § 63(c)(5) for an individual who may be claimed
(3) Aged or blind. For taxable years beginning in 2015, the additional standard deduction amount under § 63(f) for the aged or the blind is
.15 Overall Limitation on Itemized Deductions. For taxable years beginning in 2015, the applicable amounts under § 68(b) are $309,900 in the case of a joint return or
a surviving spouse, $284,050 in the case of a head of household, $258,250 in the case of an individual who is not married
and who is not a surviving spouse or head of household, $154,950 in the case of a married individual filing a separate return.
.16 Cafeteria Plans. For the taxable years beginning in 2015, the dollar limitation under § 125(i) on voluntary employee salary reductions for
contributions to health flexible spending arrangements is $2,550.
.17 Qualified Transportation Fringe Benefit. For taxable years beginning in 2015, the monthly limitation under § 132(f)(2)(A) regarding the aggregate fringe benefit
exclusion amount for transportation in a commuter highway vehicle and any transit pass is $130. The monthly limitation under
§ 132(f)(2)(B) regarding the fringe benefit exclusion amount for qualified parking is $250.
.18 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education Expenses. For taxable years beginning in 2015, the exclusion under § 135, regarding income from United States savings bonds for taxpayers
who pay qualified higher education expenses, begins to phase out for modified adjusted gross income above $115,750 for joint
returns and $77,200 for all other returns. The exclusion is completely phased out for modified adjusted gross income of $145,750
or more for joint returns and $92,200 or more for all other returns.
.19 Adoption Assistance Programs. For taxable years beginning in 2015, under § 137(a)(2), the amount that can be excluded from an employee’s gross income
for the adoption of a child with special needs is $13,400. For taxable years beginning in 2015, under § 137(b)(1) the maximum
adoption expenses furnished pursuant to an adoption assistance program for other adoptions by the employee is $13,400. The
gross income in excess of $201,010 and is completely phased out for taxpayers with modified adjusted gross income of $241,010
.20 Private Activity Bonds Volume Cap. For calendar year 2015, the amounts used under § 146(d)(1) to calculate the State ceiling for the volume cap for private
activity bonds is the greater of (1) $100 multiplied by the State population, or (2) $301,515,000.
.22 General Arbitrage Rebate Rules. For bond years ending in 2015, the amount of the computation credit determined under the permission to rely on § 1.148–3(d)(4)
of the proposed Income Tax Regulations is $1,650.
Defeasance Escrow. For calendar year 2015, under § 1.148–5(e)(2)(iii)(B)(1), a broker’s commission or similar fee for the acquisition of a
(B) 0.2 percent of the computational base (as defined in § 1.148–5(e)(2)(iii)(B)(2)) or, if more, $4,000; and (2) the issuer does not treat more than $110,000 in brokers’ commissions or similar fees as qualified
(2) Phaseout. For taxable years beginning in 2015, the personal exemption phases out for taxpayers with the following adjusted gross income
.25 Eligible Long-Term Care Premiums. For taxable years beginning in 2015, the limitations under § 213(d)(10), regarding eligible long-term care premiums includible
(1) Self-only coverage. For taxable years beginning in 2015, the term “high deductible health plan” as defined in § 220(c)(2)(A) means, for self-only
coverage, a health plan that has an annual deductible that is not less than $2,200 and not more than $3,300, and under which
the annual out-of-pocket expenses required to be paid (other than for premiums) for covered benefits do not exceed $4,450.
(2) Family coverage. For taxable years beginning in 2015, the term “high deductible health plan” means, for family coverage, a health plan that
has an annual deductible that is not less than $4,450 and not more than $6,650, and under which the annual out-of-pocket expenses
required to be paid (other than for premiums) for covered benefits do not exceed $8,150.
.27 Interest on Education Loans. For taxable years beginning in 2015, the $2,500 maximum deduction for interest paid on qualified education loans under §
221 begins to phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in excess of $65,000 ($130,000
for joint returns), and is completely phased out for taxpayers with modified adjusted gross income of $80,000 or more ($160,000
.28 Treatment of Dues Paid to Agricultural or Horticultural Organizations. For taxable years beginning in 2015, the limitation under § 512(d)(1), regarding the exemption of annual dues required to
be paid by a member to an agricultural or horticultural organization, is $160.
(1) Low cost article. For taxable years beginning in 2015, for purposes of defining the term “unrelated trade or business” for certain exempt
organizations under § 513(h)(2), “low cost articles” are articles costing $10.50 or less.
(2) Other insubstantial benefits. For taxable years beginning in 2015, under § 170, the $5, $25, and $50 guidelines in section 3 of Rev. Proc. 90–12, 1990–1
to fail to be fully deductible, are $10.50, $52.50, and $105, respectively.
.30 Expatriation to Avoid Tax. For calendar year 2015, under § 877A(g)(1)(A), unless an exception under § 877A(g)(1)(B) applies, an individual is a covered
the expatriation date is more than $160,000.
.31 Tax Responsibilities of Expatriation. For taxable years beginning in 2015, the amount that would be includible in the gross income of a covered expatriate by
reason of § 877A(a)(1) is reduced (but not below zero) by $690,000.
.33 Unified Credit Against Estate Tax. For an estate of any decedent dying during calendar year 2015, the basic exclusion amount is $5,430,000 for determining
the amount of the unified credit against estate tax under § 2010.
.34 Valuation of Qualified Real Property in Decedent’s Gross Estate. For an estate of a decedent dying in calendar year 2015, if the executor elects to use the special use valuation method
to use § 2032A for purposes of the estate tax cannot exceed $1,100,000.
(1) For calendar year 2015, the first $14,000 of gifts to any person (other than gifts of future interests in property) are
(2) For calendar year 2015, the first $147,000 of gifts to a spouse who is not a citizen of the United States (other than
.36 Tax on Arrow Shafts. For calendar year 2015, the tax imposed under § 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer
of any shaft of a type used in the manufacture of certain arrows is $0.49 per shaft.
.37 Passenger Air Transportation Excise Tax. For calendar year 2015, the tax under § 4261(b)(1) on the amount paid for each domestic segment of taxable air transportation
is $4. For calendar year 2015, the tax under § 4261(c)(1) on any amount paid (whether within or without the United States)
for any international air transportation, if the transportation begins or ends in the United States, generally is $17.70.
Under § 4261(c)(3), however, a lower amount applies under § 4261(c)(1) to a domestic segment beginning or ending in Alaska
or Hawaii, and the tax applies only to departures. For calendar year 2015, the rate is $8.90.
.38 Reporting Exception for Certain Exempt Organizations with Nondeductible Lobbying Expenditures. For taxable years beginning in 2015, the annual per person, family, or entity dues limitation to qualify for the reporting
with nondeductible lobbying expenditures, is $111 or less.
.39 Notice of Large Gifts Received from Foreign Persons. For taxable years beginning in 2015, § 6039F authorizes the Treasury Department and the Internal Revenue Service to require
year exceeds $15,601.
.40 Persons Against Whom a Federal Tax Lien Is Not Valid. For calendar year 2015, a federal tax lien is not valid against (1) certain purchasers under § 6323(b)(4) who purchased
personal property in a casual sale for less than $1,520, or (2) a mechanic’s lienor under § 6323(b)(7) who repaired or improved
certain residential property if the contract price with the owner is not more than $7,590.
.41 Property Exempt from Levy. For calendar year 2015, the value of property exempt from levy under § 6334(a)(2) (fuel, provisions, furniture, and other
household personal effects, as well as arms for personal use, livestock, and poultry) cannot exceed $9,080. The value of property
exceed $4,540.
.42 Interest on a Certain Portion of the Estate Tax Payable in Installments. For an estate of a decedent dying in calendar year 2015, the dollar amount used to determine the “2-percent portion” (for
purposes of calculating interest under § 6601(j)) of the estate tax extended as provided in § 6166 is $1,470,000.
.44 Periodic Payments Received under Qualified Long-Term Care Insurance Contracts or under Certain Life Insurance Contracts. For calendar year 2015, the stated dollar amount of the per diem limitation under § 7702B(d)(4), regarding periodic payments
that are treated as paid by reason of the death of a chronically ill individual, is $330.
.02 Calendar Year Rule. This revenue procedure applies to transactions or events occurring in calendar year 2015 for purposes of sections 3.08 (rehabilitation
expenditures treated as separate new building), 3.09 (low-income housing credit), 3.13 (transportation mainline pipeline construction
3.30 (expatriation to avoid tax), 3.34 (valuation of qualified real property in decedent’s gross estate), 3.35 (annual exclusion
for gifts), 3.36 (tax on arrow shafts), 3.37 (passenger air transportation excise tax), 3.40 (persons against whom a federal
tax lien is not valid), 3.41 (property exempt from levy), 3.42 (interest on a certain portion of the estate tax payable in
installments), 3.43 (attorney fee awards), and 3.44 (periodic payments received under qualified long-term care insurance contracts
or under certain life insurance contracts).