IRS TAX

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).

These annual adjustments prevent people from being put into a higher income tax brackets or have reduced credits or deductions because of the effects of inflation. If you would like to view the change made in 2013 that will affect your taxes to filed in 2015, these changes for the 2014 tax year are here.2015ext

These adjustments for 2015 include marginal tax rates, which are lower for people with no income, increase, but the highest marginal tax rate remained the same. The standard deduction was increased by $100 for single filers and married people filing separately, $150 for head of households, and $200 for married couples filing jointly. Personal exemption gained $50 to $4,000 and is completely phased-out for incomes above $380,750 for single filers and $432,400 for couples filing jointly. The Alternative Minimum Tax exemption went up from $52,800 for 2014 to $53,600 for 2015 and from $82,100 to $83,400 for jointly filing couples.

The maximum Earned Income Tax Credit is $503 for filers with no children and is $3,359 for one child, $5,548 for two, and $6,242 for three or more children.

A Phase-out for this credit starts at $8,240 with no children and equals zero credit at $14,820. It starts at $18,110 for those with one, two or three children and ends at $39,131 for one child, at $44,454 for those with 2 children, and $47,747 for three children. For couples filing jointly phase-out begins at $13,760 and ends at $20,330 if there are no children. With one child and 2 or three children it begins at $23,630 and ends at $44,651 with one child, $49,974 with two, and $53,267 for those with three children or more.

Decedents of those who die in 2015 will receive an exclusion amount $90,000 higher with an increase to $5,430,000 from $5,340,000 for decedents of those in 2014. Spouses who are not US citizens will receive a tax exclusion increase of $2000 with the amount rising from $145,000 to $147,000 on gifts from their spouses. The exclusion for gifts remained the same at $14,000. The foreign earned income exclusion rose to $100,800 from $99,000. Employer sponsored healthcare FSA (flexible spending arrangements) annual dollar limit on employee contributions to healthcare programs increased by $50 to $2,550. Small business that employs greater than ten full-time employees and pays higher than $25,800 for 2015 will be phased-out of the health care tax credit. This is a list of the changes included in the new IRS Tax annual adjustments. You will find a more complete explanation, tables and list at TaxFoundation.org website. These changes will affect the 2015 tax returns that will be filed in 2016.

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