Tax Changes for 2015

Welcome 2015! As the new year rolls around, it's always a sure bet that there will be changes to current tax law and 2015 is no different. Below you'll find a summary of tax changes, you can read the full article which provides more detail HERE.

Individuals

• More than 40 tax provisions affected by inflation adjustments
• Tax-bracket thresholds increase for each filing status
• Standard deductions and the personal exemption have also been adjusted upward

Individuals - Tax Credits

• Adoption Credit - up to $13,400
• Earned Income Tax Credit - increase from $6,143 in 2014 to $6,242
• Child Tax Credit - $1,000 per child
• Child and Dependent Care Credit - child under 13 by end of tax year may qualify up to $1,050 or 35% of $3,000 eligible expenses. Two or more up to 35% of $6,000 in eligible expenses.

Individuals - Education

• American Opportunity Tax Credit and Lifetime Learning Credits  - extended to end of 2017 max credit of $2,500 p/student. Lifelong credit $2,000 per return
• Interest on Educational Loans - deduction of interest limit changed

Businesses

• Standard Mileage Rates - 57.5 cents p/mile
• Section 179 - changes in maximum deduction on equipment purchases
• Employee Health Insurance Expenses - $25,800 limits for small employer health insurance credit
• Transportation Fringe Benefits - monthly limitations

While this checklist outlines important tax changes for 2015, additional changes in tax law are more than likely to arise during the year ahead.

Don't hesitate to call us if you want to get an early start on tax planning for 2015. We're here to help!