The New Year will begin in less than a month, tax season will be right behind it. Individuals who plan their taxes early are better able to manage their finances for 2015. In order to minimize tax liabilities, it’s good to review expenditures; transfer of money, property, assets; charitable contributions, gifts.
Some of the tax limits and inflation adjustments are shared below.
For individual taxpayers filing as single whose income is more than $413,200, the tax rate of 39.6% will be charged in 2015. For those filing jointly, the income limit must not be more than $464,850.
The standard deduction for 2015 goes up $100. From $6,200 for 2014, it rises to $6,300 for single taxpayers for 2015.
For married filing jointly, it goes up from $12,400 to $12,600.
For head of household it rises from $9,100 this year to $9,250 next year.
For individuals, the limitation for itemized deductions for 2015 starts with incomes of $258,250 or more. For those filing jointly, it starts at $309,900.
Personal exemption rises from $3,950 in 2014 to $4,000 in 2015. It should be noted that the exemption is phased-out. It begins with the adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly) and phases out completely at $380,750.
Those who are eligible for the Earned Income Tax Credit should keep in mind that in 2015, the EIC amount is $6,242 for taxpayers filing jointly who have 3 or more qualifying children. For 2014, it is $6,143.
Estates of decedents who pass away during 2015 have a basic exclusion amount of $5,430,000, which has gone up from $5,340,000 for estates of decedents who died in 2014.
The annual exclusion for gifts remains at $14,000 for 2015.
The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) goes up to $2,550 for 2015.Labels: IRS, Tax Code, Tax Credit, Tax Deductions, Tax Filing, Tax News, Taxpayers
