Wednesday, April 8, 2015

Tax Changes for 2015 Filing

The 2014 Tax filing deadline is fast approaching, this article will explain the significant income tax changes you may not be aware of. This discussion will include changes to Social Security and Medicare, federal income tax standard deductions and exemptions, mileage deduction rates, earned income credits, Hope and Lifetime Learning tax credits, in addition to changes to retirement accounts such as the 401(k), 403(b), IRAs, and Roth plans.

Note:  Changes that apply to the 2015 tax year can be found in this article: Income Tax Changes 2015 - 2016.

Federal Income Tax Filing Deadline
The filing deadline for the year 2014 is Wednesday April 15, 2015.  Information appearing in this article applies to changes effective in 2014, which then become part of a taxpayer's return in 2015.

Income Tax Rates
The American Taxpayer Relief Act of 2012, or ATRA, added a seventh federal income tax bracket (39.6%) in 2013, while the remaining six rates were unchanged.  In 2014, taxable incomes above the following thresholds now fall into the 39.6% bracket:  Married Filing Separately ($228,800), Unmarried Individuals ($406,750), Head of Household ($432,200), and Married Filing Joint Returns ($457,600).


To view other changes to the standard deductions, capital gains, social security, medicare, mileage, earned income and more list please visit: http://www.money-zine.com/financial-planning/tax-shelter/income-tax-changes-2014/

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