As you are probably already aware, tax law changes some from
year to year. For filing taxes in 2015, there are a few changes and tips to
keep in mind.
New Tax Brackets
To begin with, tax brackets have changed significantly.
Those paying the lowest taxes are individuals with a taxable income that is not
above $9,075 while those paying the highest taxes are individuals with a
taxable income of over $406,750. These figures vary somewhat for those who are
married filing jointly and for surviving spouses. Taxpayers who fall into these
categories will pay the least taxes if their taxable income is $18,150 or less
and the most taxes if their income is over $457,600. Other filing statuses come
with their own unique tax brackets, so if you are unsure how to file or what
tax bracket you fall under, speak with your accountant.
The Pease Limitations
Another set of new tax laws to be aware of are the Pease
Limitations, which dictate limits for itemized deductions. Due to these laws,
top marginal tax rates have risen, and the limitations now start at $254,200
for individual taxpayers and $306,050 for married couples filing jointly.
Earned Income Tax Credit
The coming year also brings changes related to the earned
income tax credit. Now, the maximum credit that can be received for taxpayers
who file jointly and who have only one child is $3,304. Those with two children
have a limitation of $5,460, and those with three or more children have a limit
of $6,143. Individuals without children who claim this credit have a limit of
$496.
A Year of Change
The changes presented here are just a small sampling of the
many changes that will affect 2014 tax returns. With so many changes, there has
never been a better time to talk with your accountant or even to retain an
accountant for the first time. It is important for you to understand the
changes to tax law and how they affect you and the manner in which you should
file for maximum benefit, and a tax professional is the best person to help you
with those matters.
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