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2015 Tax Law Modifications to Discuss with your Palm Beach County Tax Professional

Posted by Lorea Thomson on Thursday, March 24th, 2016 at 3:37pm.

 

Tax laws are constantly shifting, lots of ebbs and flows.  There are no major new tax legislation changes for 2015, but tax laws are still always changing.  Some changes for 2015 may affect you.  Thank goodness, Florida does not have a state tax!

The 2015 tax bracket refers to the top 1 percent of high-income earners.  This means high-income earners will be paying 39.6 percent income tax on gross taxable earnings.

The IRS is cracking down on IRA rollovers. It was easy to “borrow” money set aside for retirement for up to 60 days.  As of 2015, one can only do that once in a 12-month period.  If you wish to move IRA assets, you may do so by using “trustee to trustee” transfers.

The Health Insurance penalty for not having health insurance has increased significantly for 2015.  In 2014, the penalty was only $95 per person or 1 percent of total household income, whichever was greater.  Tax laws for 2015 promise the penalty will be considerably steeper, $325 per person, or 2 percent of their household income.

Pell Grants can be apportioned as living expenditures.  By doing so, it may increase the amount of education expense, like tuition.

The standard deduction is up to $6,300 per single filer and married persons filing separately.  Couples filing jointly have a deduction of $12,600 and the standard deduction for heads of household will be $9,250 in 2015.

Personal exemptions are a flat $4,000.  If you are a higher income earner, personal exemptions are phased out completely at $380,750.

Keep in mind the energy efficient tax relief, which includes 10% credit if you have energy efficient improvements to your home.

This information is general material not tax advice. Please contact a tax professional for advice.

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