30 Oct 2014

The Internal Revenue Service recently issued Revenue Procedure 2014-61, which sets forth the annual adjustments to tax benefits for the 2015 tax year.


• In 2015, the highest income tax rate of 39.6 percent is imposed on single individuals whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), an increase from $406,750 and $457,600 in 2014, respectively.

• The standard deduction was increased to $6,300 for single individuals and married persons filing separate returns and $12,600 for married couples filing jointly. This is an increase from $6,200 and $12,400, respectively, for 2014 tax year. The standard deduction for heads of household increased in 2015 to $9,250, which is an increase of $150 from the 2014 deduction.

• The limitation for itemized deductions to be claimed on the 2014 tax year returns for individuals begins with incomes of $258,250 or more ($309,900 for married couples filing jointly).

• The personal exemption for 2015 tax year increases by $50 to $4,000. Note, however, that the exemption is subject to a phase-out that begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly). The exemption phases out completely at $380,750 ($432,400 for married couples filing jointly.)

• The Alternative Minimum Tax exemption amount for the 2015 tax year is $53,600 ($83,400, for married couples filing jointly). The 2014 exemption amount was $52,800 ($82,100 for married couples filing jointly).

• Estates of decedents who die during 2015 have a basic exclusion amount of $5,430,000, up from a total of $5,340,000 for estates of decedents who died in 2014.

• The 2015 exclusion from tax on a gift to a spouse who is not a U.S. citizen is now $147,000, up from $145,000 for 2014.

• The 2015 foreign earned income exclusion is now $100,800, an increase from $99,200 in 2014.

• The 2015 annual exclusion for gifts amount remains unchanged at $14,000 (i.e., $14,000 gifts may be may be given to an unlimited number of people without the imposition of gift tax.)

• The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) increased by $50 in 2015 to $2,550.

If you would like to discuss this or other trusts and estates issues, please contact the attorneys at Drucker Law Offices, 468 North Camden Drive, 2nd Floor, Beverly Hills, CA 90210, 310.285.5375 Tel, 310.444.9754 Fax, www.druckerlaw.com

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