Tax season is here. There are some changes in tax rules and regulations this year. Please drop off your taxes at your local Stone Financial office and speak to your CPA today! Let us make sure you are getting everything for which you qualify. Also, don't forget: this year you receive a financial review included with your tax service.
Key Numbers for 2015
Every year, the Internal Revenue Service (IRS) announces cost-of-living adjustments that affect contribution limits for retirement plans, thresholds for deductions and credits, and standard deduction and personal exemption amounts. Here are a few of the key adjustments for 2015.
- Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $18,000 in compensation in 2015 (up from $17,500 in 2014); employees age 50 and older can defer up to an additional $6,000 in 2015 (up from $5,500 in 2014)
- Employees participating in a SIMPLE retirement plan can defer up to $12,500 in 2015 (up from $12,000 in 2014), and employees age 50 and older will be able to defer up to an additional $3,000 in 2015 (up from $2,500 in 2014)
The limit on annual contributions to an IRA remains unchanged at $5,500 in 2015, with individuals age 50 and older able to contribute an additional $1,000. For individuals who are covered by a workplace retirement plan, the deduction for contributions to a traditional IRA is phased out for the following modified adjusted gross income (AGI) ranges:
|Single / head of household (HOH)||$60,000 - $70,000||$61,000 - $71,000|
|Married filing jointly (MFJ)||$96,000 - $116,000||$98,000 - $118,000|
|Married filing separately (MFS)||$0 - $10,000||$0 - $10,000|
Note: The 2015 phaseout range is $183,000 - $193,000 when the individual making the IRA contribution is not covered by a workplace retirement plan, but is filing jointly with a spouse who is covered.
The modified AGI phaseout ranges for individuals making contributions to a Roth IRA are:
|Single / HOH||$114,000 - $129,000||$116,000 - $131,000|
|MFJ||$181,000 - $191,000||$183,000 - $193,000|
|MFS||$0 - $10,000||$0 - $10,000|
Estate and gift tax
The annual gift tax exclusion remains $14,000 The gift and estate tax basic exclusion amount for 2015 is $5,430,000, up from $5,340,000 in 2014
The personal exemption amount has increased to $4,000 (up from $3,950 in 2014). For 2015, personal exemptions begin to phase out once AGI exceeds $258,250 (Single), $309,900 (MFJ), $284,050 (HOH), or $154,950 (MFS).
Note: These same AGI thresholds apply in determining if itemized deductions may be limited. The corresponding 2014 threshold amounts were $254,200 (single), $305,050 (MFJ), $279,650 (HOH), and $152,525 (MFS).
- Standard deduction The standard deduction amounts have been adjusted as follows:
Note: The 2015 additional standard deduction amount (age 65 or older, or blind) is $1,550 if filing as single or HOH (unchanged from 2014) or $1,250 (up from $1,200 in 2014) for all other filing statuses. Special rules apply if you can be claimed as a dependent by another taxpayer.