We’ve rung in the New Year with some updates to the federal tax system. Set by Congress to keep in line with inflation, we highlight four changes that may affect your 2015 tax bill:
- To start with some good news, the standard deduction will increase slightly: $100 for singles, $200 for married, and $150 for head of household.
- For 2015, the earnings level for the 39.6% top tax rate has increased by 1.59%. It will now apply to singles earning over $413,200 and to married filing jointly taxpayers making over $464,850.
- The federal Estate Tax will now kick in for estates over $5.43 million, up from $5.34 million in 2014.
- Alternative Minimum Tax exemption has been raised by $800 to $53,600 for singles and by $1,300 to $83,400 for those married filing jointly.
Good financial planning includes understanding the tax changes in 2015. Questions? Send us an email, or give us a call at 317.663.4138.