Did You Know?

IRS resources decline

Fiscal year 2014 funding for the IRS was $11.29 billion, an $850 million decrease from 2010 funding. Also, from 2010 to 2014, the IRS lost 10,000 full time employees. This decrease in

resources will affect the IRS’s ability to maintain previous levels of taxpayer services and taxpayer enforcement, according to IRS Commissioner John Koskinen.

2015 HSA limits released

The IRS has released the inflation adjusted limits for deductible contributions to health savings accounts (HSAs) for 2015. For family coverage, the contribution limit will be $6,650. For individual coverage, the limit will be $3,350. Individuals who are 55 or older are allowed to

contribute an additional $1,000. HSAs let taxpayers with high-deductible health insurance plans set aside pretax contributions that can be withdrawn tax-free to pay unreimbursed medical expenses.

Facts on amended returns

Taxpayers are allowed to file amended returns if they find they have omitted or misreported an item on the originally filed return. The IRS wants taxpayers to know the following facts about

amending returns:

• Amended returns can’t be e-filed; they must be filed on paper.

• An amended return should be filed for errors in filing status, income, deductions, or credits.

• Don’t file an amended return for math errors; the IRS will correct these and notify you.

• Amended returns take up to 12 weeks to process.

• Returns can be amended for up to three years from the original filing.

Related articles

• What Are Health Savings Accounts? (themoneygeek.com)
• Cuts in IRS Budget Have Compromised Taxpayer Service and Weakened Enforcement (cbpp.org)