IRS Releases 2015 Tax Brackets and Rates

The IRS has now released their 2015 tax brackets and tax rates. These are amounts for the 2015 tax year, not for filing your 2014 taxes in 2015. For the 2014 Rates click HERE.

Individual Taxpayers

Married Individuals Filing Joint Returns and Surviving Spouses

Married Individuals Filing Separate Returns

Heads of Household

Trusts and Estates

Standard Deductions

More changes for the 2015 tax year...

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.

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