There are currently many tax breaks that have expired at the end of 2013. One of the biggest questions is whether these will be retroactively extended for 2014. Some of these items include the state and local sales tax deduction, special mortgage debt forgiveness provisions, higher education tuition deduction, IRA distributions to charities, and teachers' classroom expense deduction. At the time of publication, the House overwhelmingly voted in favor of the extension, and the Senate is likely to do the same.

Remember the Net Investment Income (NII) tax is still applicable. This tax first applied in 2013, and is assessed at a rate of 3.8% on the lesser of investment income or total adjusted gross income over a threshold amount ($250,000 for married individuals, $200,000 for singles). Keeping your income below the threshold amount will avoid the NII tax. There is also an additional Medicare tax of .9% on wages and self-employed earnings in excess of the same threshold amounts. Most employers are withholding this additional tax if it applies.

The famous "AMT patch" that we seem to wait for each year was made permanent last year. This "patch" provides for increased exemption amounts and allows taxpayers to take all of the nonrefundable personal credits against AMT liability.

The Pease Limitation reduces a higher-income taxpayer's otherwise allowable itemized deductions by 3% of the amount his adjusted gross income exceeds an applicable threshold. However, the reduction cannot be more than 80% of the total itemized deductions.

Effective January 1, 2014, the Affordable Care Act requires individuals to carry minimum essential health care coverage or make an individual shared responsibility payment. This payment will be made when filing the 2014 income tax return. Those who obtain health insurance through the Marketplace may be eligible for a premium assistance tax credit to help offset the cost of coverage.

Taxpayers can gift up to $14,000 per individual gift-tax free, and without cutting into the lifetime exclusion ($5,340,000 in 2014, and $5,430,000 in 2015). Spouses can consent to split gifts, enabling them to double the amount to each recipient without tax consequences.

Bonus Depreciation provisions have expired after 2013, along with enhanced Section 179 expensing of equipment, however these provisions are in the bill to be extended along with the individual tax breaks.

Effective January 1, 2015, the Affordable Care Act's employer shared responsibility requirements, aka the "employer mandate" take effect for large employers. Employers with fewer than 50 full time equivalent employees are completely exempt from the mandate. Those employers with 50 to 99 full time equivalent employees are exempt until 2016.