Information courtesy of IRS.gov

For 2015, the Internal Revenue Service announced the annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. The tax items for tax year 2015 of greatest interest to most of our clients include the following dollar amounts:

  •  The tax rate of 39.6 percent affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively.
  •  The standard deduction rises to $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly, up from $6,200 and $12,400, respectively, for tax year 2014. The standard deduction for  heads of household rises to $9,250, up from $9,100.
  •  The limitation for itemized deductions to be claimed on tax year 2015 returns of individuals begins with incomes of The personal exemption for tax year 2015 rises to $4,000, up from the 2014 exemption of $3,950. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly). It phases out completely at $380,750 ($432,400 for married couples filing jointly.)
  •  The Alternative Minimum Tax exemption amount for tax year 2015 is $53,600 ($83,400, for married couples filing jointly). The 2014 exemption amount was $52,800 ($82,100 for married couples filing jointly).
  •  Estates of decedents who die during 2015 have a basic exclusion amount of $5,430,000, up from a total of $5,340,000 for estates of decedents who died in 2014.
  •  For 2015, the exclusion from tax on a gift to a spouse who is not a U.S. citizen is $147,000, up from $145,000 for 2014.
  •  For 2015, the foreign earned income exclusion breaks the sixfigure mark, rising to $100,800, up from $99,200 for 2014.
  •  The annual exclusion for gifts remains at $14,000 for 2015.
  •  The annual dollar limit on employee contributions to employersponsored healthcare flexible spending arrangements (FSA) rises to $2,550, up $50 dollars from the amount for 2014.
  •  Under the small business health care tax credit, the maximum credit is phased out based on the employer’s number of fulltime equivalent employees in excess of 10 and the employer’s average annual wages in excess of $25,800 for tax year 2015, up from $25,400 for 2014.

We will guide you through the changes and how they relate to you or your business. Give us a call for an appointment.