As we bring in 2016, we still must wrap up 2015. And that means taxes. Download NashTax’s comprehensive report below. Here are some highlights…
"Let inflation be with you..."
- Standard deduction. The standard deduction inches up to $6,300 for singles and married persons filing separate returns and to $12,600 for joint filers. The standard deduction for heads of household is $9,250 in 2015.
- Higher income levels for limitation on itemized deductions. Clients may see their itemized deductions limited if their incomes are $258,250 or more ($309,900 for married couples filing jointly).
- Personal exemptions. They’re now a flat $4,000. If you have high-income clients, however, the exemption may be phased out. The phase-out begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly). Personal exemptions are phased out completely at $380,750 ($432,400 for married couples filing jointly.)
- 39.6 percent tax bracket. This rate affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return).
- Standard mileage allowance. The business standard mileage allowance for 2015 is 57.5 cents per mile. The rate for medical or moving expenses is actually down half a cent, to 23 cents per mile. For miles driven in service of charitable organizations, it’s still 14 cents.
- Alternative Minimum Tax exemption. The AMT exemption is $53,600, or $83,400 for joint filers.
- Earned Income Credit. The maximum EIC amount is $6,242 for taxpayers filing jointly with three or more qualifying children. The maximum amounts for your clients with other filing statuses and numbers of children are also adjusted.
- Estate tax exclusion. Federal estate tax planning is becoming less of a point for many clients, as the estate tax exclusion continues to rise. An estate can be worth $5,430,000 before it is subject to federal estate tax.
- Foreign earned income exclusion. Clients may now qualify for an exclusion of up to $100,800.
- Employer-sponsored healthcare flexible spending arrangements. The annual dollar limit on employee contributions to an FSA rises to $2,550.