The 2014 inflation adjustments that move up the tax brackets and the alternative-minimum tax cut-off will also affect the thresholds for phasing out itemized deductions. The phaseout will apply if your adjusted gross income (AGI) is $305,050 for married couples filing jointly or a qualifying widow or widower. For a head of household, the figure is $279,650. For single taxpayers, the phaseout threshold is $254,200, and for married people filing individually, it is $152,525.

Not everything is subject to the phaseout. Deductions for mortgage interest, real-estate taxes, state or local income or general sales taxes, charitable contributions and miscellaneous deductions are affected, but medical and dental expenses, investment interest, casualty and theft losses and gambling losses are not subject to the phaseout. The phased-out amount depends on the excess of the AGI over the threshold.

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.

http://www.nickersonpa.com/