On January 20, 2015, the IRS opened its doors to allow taxpayers to begin to file taxes. Those taking advantage of the tax extension already know of several new changes taking place this year. If you are still working on your taxes, or haven’t gotten started yet, there are some important new changes that likely affect you, your employees or family members. Please take a look through the following changes summarized from the USA Today article, “7 Big Tax Changes in 2015.”
1. Health Insurance – If you and/or your dependents were uninsured in 2014, you will be penalized on your taxes filed this period. Taxpayers affected by this change will pay either two percent of their total household income or $325 per individual; whichever is the greater of the two.
2. 401(k) – The employee 401(k) contribution maximum has increased to $18,000. For those older than 50, an additional contribution of $6,000 can go toward their 401(k). Be sure your payroll department adjusts your contribution so you are benefiting from the maximum allowance.
3. FSA – Employees covered under a Flexible Spending Account (FSA) can now contribute up to $2,550 for qualified health care expenses.
4. Standard Deduction – The basic tax break, or standard deduction, has increased to $6,300 for all single Americans and $12,600 for all jointly filing married Americans.
5. Tax Brackets – Income tax brackets have changed again due to inflation. You can click hereto view individual tax brackets to determine your status.
6. IRA’s - Those who partake in IRAs, can now only make one rollover in a 12-month period, but trustee-to-trustee transfers can occur as often as desired. The point of this change is to limit fund withdrawal, which can then be re-deposited into a new account. This work-around tactic allowed for temporary interest-free loans.
7. AMT – The Alternative Minimum Tax (AMT) is a limit set by the IRS to minimize tax burdens. The AMT exemption amount for individuals is $53,600 and $83,400 for joint filers.
Be sure to meet with a trusted tax advisor to ensure your taxes are filed appropriately, on time and without error. Plus, you will find filing taxes to be simpler, faster and more efficient if filed electronically. If you have any questions related to your taxes, please give your BenefitMall Representative a call or visit www.IRS.org.