New IRS Tax

Income tax brackets and other tax items are being updated for a condition known as bracket creep for the tax year of 2015.
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There are additional tax updates that are included in your tax assessment for the year 2015. Most of the new rates are based on an inflation formula that includes a standard increase in the cost of living, along with some increase in the amount of income that you may earn from year to year.


New IRS Tax Brackets And Tables For 2015 Increase Benefits Because Of Inflation
As everyone gear up for the income tax season, news about income taxes that offers increased benefits will be well received.
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The Internal Revenue Service (IRS) announced the annual adjustments made to the tax structure because of inflation. These new schedules and tax tables will be used in 2016 to figure income tax on 2015 incomes.

All income brackets and filers are affected by the changes and many may save money because of the 2% drop off of the consumer price index (CPI).

IRS tax brackets and tables

Federal income tax brackets and related tax items under the tax code provide for mandatory annual indexing based on inflation.

This is to prevent the condition known as bracket creep which refers to people being pushed into higher tax brackets due to income increases. Indexing up of brackets in inflationary times lowers tax bills by including more taxpayer incomes in lower brackets.

The indexing formula this year showed slightly higher inflation of just under 1.58 percent over last year and so most taxpayers will experience modest tax savings. For example, a single filer with taxable income of $50,000 should owe $62.50 less next year.