With the arrival of a new year comes the tax regulation changes and alterations. It is important that taxpayers and accounting firms be kept up to date to avoid any additional hassle or confusion. Regardless of whether you file your own taxes or have an accounting firm in Everett preparing your taxes for you, it is important that you be well informed of these tax changes and their impacts. Here is a short summary of the top 5 tax changes for 2015.
1. Alternative Minimum Tax
Alternative minimum tax has been raised in 2015. Previously, the alternative minimum tax was a piece of legislation that Congress was forced to patch annually to compensate for changing inflation levels. As of January 2013, this legislation has been indexed to inflation levels, resulting in automatically adjusted exemption amounts and associated thresholds annually. Exemption amounts have risen for 2015 due to increased inflation.
2. Top Tax Rate
Similar to the alternative minimum tax, the top marginal income tax rate has been indexed to keep pace with inflation. The year 2015 has seen an increase in the top tax rate to 39.6%. The taxable income amounts are adjusted annually, so proper tax accounting in preparation for future filing is critical at this time. Receiving assistance from a local Everett accounting firm is an excellent way to ensure full compliance to all tax regulations.
3. Estate Tax
The estate tax, also known as the federal estate tax exemption, is a tax on a certain portion of an estate left by an individual following their death. Luckily, the exemption rate is up to $5.43 million instead of the $5.34 million from last year, allowing an additional $90,000 to be left tax-free.
4. Standard Deduction
Because standard deduction is also indexed to inflation, rates have also risen slightly for the year 2015. Singles and married couples can expect to see the standard deduction rise about $100 to $200 dollars depending on on whether you are single, married, or head of household. Everett accounting services like Your Balance Sheet can help you to calculate your deductions and adjust for annual changes.
5. Itemized Deductions
With the Pease limitations, individuals that make gross income of $258,250 or more are subject to limitations that increase their top marginal tax rates. After being reinstated in 2013, the Pease limitations were indexed for inflation.
For businesses or individuals that are regularly faced with changing tax laws and are looking for accounting and filing assistance, Your Balance Sheet would love to make your life easier. Located in Everett, WA, Your Balance Sheet LLC has been providing tailored bookkeeping, accounting, and tax filing services to businesses and individuals throughout the greater Puget Sound area. For more information about the tax changes for 2015 or our services, feel free to give us a call or fill out our contact form.