Personal Exemption Amounts
Personal exemption amounts will increase to $4,000 from $3,950 in 2015. Do keep in mind that claiming a number of exemptions can trigger AMT, even at relatively low income levels. Also personal exemption amounts phase out starting at $258,200 for individuals or $309,900 for married couples.
Fringe Benefit Updates
Deductible amounts of monthly transportation in a highway vehicle or for transit passes provided to employees is $130. The monthly limitation for qualified parking is $250.
Foreign Earned Income Exlcusion
Foreign Earned Income Exclusion amounts have increased finally into six figure range to $100,800 for 2015. This is a big jump from $99,200 in 2014. To qualify for this exclusion you must have lived overseas for 330 days out of a 12 month period or qualify as a bonafide resident of a foreign country.
Retirement Plan Changes
For those who contribute to 401k, 403b or most 457 plans there will be an increase in the maximum contribution amounts for 2015 to $18,000 with an extra $6,000 available for those aged 50 and above. However, the maximum contribution amounts for IRA accounts remains unchanged at $5,500.