Showing posts with label filing taxes in 2015. Show all posts
Showing posts with label filing taxes in 2015. Show all posts

Wednesday, February 18, 2015

Tips for Filing Taxes this Year

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.