2015 tax laws you need to know about
1. Now Affordable Care Act impacts your taxes. If you signed up for health insurance in 2014 and received no sharing of subsidy costs, then you will not have much to fear. For those who registered in the Affordable Care Act and received cost-sharing grants to help pay for coverage, you will need to match your actual income with the thought that you have given during the application of coverage to help offset the total balance of subsidies. Depending on how much you actually made from the amount you estimated during registration, or you receive a small tax refund or owe the IRS money. Oh, and if you denied health care by the employer, private insurance or ACA coverage, be prepared to pay a fee.
2. 401 (k) contribution limits raised. Stagnation in 2013 and 2014, the maximum annual contributions to your 401 (k), 403 (b) and most 457 plans have increased in 2015. You can now save up to $ 18,000 per year in the accounts of pension plus an additional amount of $ 6,000 in contributions to "catch up" for the 50 years and older. The maximum contribution limit last year was $ 17,500 per year and $ 5,500 in "catch up".
3. Myra debuted. The new brand's retirement account is designed to help those who start their journey to save for the future. Some of the benefits include no fees for the account, the ability to start one for as little as $ 25 and guaranteed growth on your initial investment - yes, you read correctly - meaning that you never take a loss! Myra was created by the Department of the US Treasury to help American workers to save for retirement and will be offered by employers. You can make contributions as little as $ 5 at a time, encouraging you to save what you can. When your account reaches $ 15,000 in value, it will be switched into a Roth IRA, another fantastic kind of retirement account.
4. The minimum wage takes a hike (up). The minimum wage rose in nine States starting January 1. Twenty-nine states, including the new additions and Washington, DC, now have a minimum wage above the federal minimum of $ 7.25 per hour. Washington DC has the highest minimum wage of $ 9.50 an hour, rising to $ 10.50 on July 1. California and Massachusetts will become the first states to $ 10 minimum wage beginning in 2016. What does this mean for your taxes? If you live in one of these states and be paid the minimum wage, then you may find yourself falling into a new tax bracket. Be sure to keep an eye on how this wage increase may affect your tax return.
5. The new standard mileage rate. If you drive a car for work or education-related work in 2014, the standard mileage rate is now 57.5 cents per mile, a percent last year. On the other hand, the rate for a car used for medical purposes in 2014 was down half a cent to 23.5 per mile.
6. Bitcoin is now taxable. If you received a payment with virtual currency, it must be reported on your taxes now. The rules and tax calculations are a bit complicated, we recommend reading them.
7. The maximum amount of income you can earn and still qualify for the earned income credit (EIC) has increased. The new maximum income to qualify again for the EIC for tax year 2014 is $ 46,997 ($ 52,247 for married couples filing jointly) with three or more qualifying, $ 43,756 ($ 49,186 for married couples filing jointly) with two qualifying children, $ 38,511 ($ 43,941 for married couples filing jointly) with one qualifying child and $ 14,590 ($ 20,020 for married couples filing jointly) with no qualifying children.
8. And therefore the maximum investment income. You can win up to $ 3,350 of investment and continue to receive the earned income credit. This represents an increase of $ 50 compared to last year.
9. The standard tax deduction increased. Depending on your filing status and if you did not itemize your deductions on Schedule A (Form 1040), you can now deduct $ 6,200 for individual filers (from $ 6,100 the year last), $ 12,400 (against $ 12,200) for married couples filing separately, and $ 9.100 ($ 8.950 against) if you file as head of household.
10. Your personal exemption also increased. You can make a deduction of $ 3,950, compared to $ 3.900 last year for yourself (personal exception) and for each dependent you claim on your taxes.
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