On October 30, 2014 the IRS announced the inflation adjustments that affect tax brackets, personal exemptions, standard deductions, the AMT and many other items. Most amounts increased by about 1.5%. However, since most automatic adjustments are rounded to the nearest $50, $100, $500 or $1000, the exact percentage change will vary from item to item.
For 2015 the standard deduction will be $6,300 (single) or $12,600 (joint), plus the additional amount for over 65 or blind. The personal exemption amount increases $50 per person to $4,000.
The estate tax exclusion of decedents who die during 2015 increases to $5,430,000, up from $5,340,000 for estates of decedents who died in 2014. One item that did not increase is the annual gift tax exemption, remaining at $14,000, the same as for 2014 (and 2013). The gift tax exemption is subject to automatic inflation adjustments, but it isn't increased until the cumulative adjustments are $1,000. Accordingly, at the current rate of inflation this particular exclusion will increase by $1,000 about once every four years.
The tax rate brackets that will be in effect for 2015 are contained in Rev Proc 2014-61, and this Rev Proc contains all the inflation adjusted rates, deductions, exemptions, credits, phase-out levels, etc. for the year 2015. Here's a link: http://www.irs.gov/pub/irs-drop/rp-14-61.pdf
Keep in mind that this information all pertains to the tax year 2015, for tax returns that will be filed in 2016, and it will be useful for those wishing to do tax planning for themselves and their clients for the upcoming year.
For 2015 the standard deduction will be $6,300 (single) or $12,600 (joint), plus the additional amount for over 65 or blind. The personal exemption amount increases $50 per person to $4,000.
The estate tax exclusion of decedents who die during 2015 increases to $5,430,000, up from $5,340,000 for estates of decedents who died in 2014. One item that did not increase is the annual gift tax exemption, remaining at $14,000, the same as for 2014 (and 2013). The gift tax exemption is subject to automatic inflation adjustments, but it isn't increased until the cumulative adjustments are $1,000. Accordingly, at the current rate of inflation this particular exclusion will increase by $1,000 about once every four years.
The tax rate brackets that will be in effect for 2015 are contained in Rev Proc 2014-61, and this Rev Proc contains all the inflation adjusted rates, deductions, exemptions, credits, phase-out levels, etc. for the year 2015. Here's a link: http://www.irs.gov/pub/irs-drop/rp-14-61.pdf
Keep in mind that this information all pertains to the tax year 2015, for tax returns that will be filed in 2016, and it will be useful for those wishing to do tax planning for themselves and their clients for the upcoming year.