1. HEALTH COVERAGE.
Information Reporting. The provider of your health coverage is required to send Form 1095-A, 1095-B, or 1095-C with list of individuals included in your family health coverage in 2015.
Health Coverage Tax Credit. Has been reinstated retroactive January 1, 2014 (expired end of 2013), pays 72.5% of qualified health insurance premiums for eligible taxpayers. If you are a dependent of another person’s return you are not eligible.
Health care individual responsibility payment increased. If anyone in your household does not have qualifying health coverage or coverage exemption, shared responsibility could be more this year versus last year.
2. ACHIEVING A BETTER LIFE EXPERIENCE (ABLE) ACCOUNT, a savings account for individuals with disabilities and their families. You can contribute up to $14,000 and distributions used to pay the beneficiary’s qualified disability expenses are tax-free.
3. Direct Deposits of refund myRA® ACCOUNT. A starter retirement account by the Department of Treasury through direct deposit of refund to myRA® program.
4. You are REQUIRED TO FILE an income tax return if your 2015 gross income reaches:
Elderly and blind taxpayers add $1,250 to $1,550.
5. PERSONAL EXEMPTIONS $4,000 (4,050 for 2016)
Phase outs for personal itemized deduction and personal exemption were reinstated in 2013.
6. STANDARD DEDUCTIONS: If your combined itemized deductions for interests, taxes, medical and contributions are less than the following amounts, use the following standard deductions:
Elderly and blind taxpayers get an extra $1,200 for married and $1,550 for unmarried.
7. EARNED INCOME TAX CREDIT (EITC). The maximum amount of credit for tax year 2015 is:
A. $503, with no qualifying children
B. $3,359, with one qualifying child
B. $5,548, with two qualifying children
C. $6,242, with three or more qualifying children
8. CHILD TAX CREDIT: $1,000 per child (additional refundable credit available). For taxpayers electing to exclude foreign earned income from tax, child tax credit is not refundable. No credit is allowed either on original return or amended 2015 return if you or your child do not have SSN, ATIN, or ITIN by due date including extensions even if later you or your child gets one of those numbers.
9. EDUCATION CREDITS:
A. American Opportunity Credit (HOPE): $2,500 per student (made permanent by the PATH Act of 2015). You cannot claim this credit either on original return or amended 2015 return if you or a student do not have SSN, ATIN, or ITIN by due date including extensions even if later you or a student gets one of those numbers.
B. Lifetime Learning Credit: $2,000 per return.
10. RETIREMENT PLANS LIMITS:
11. STANDARD MILEAGE RATES:
A. Business: 57.5¢ per mile (54¢ for 2016)
B. Medical and Moving: 23 per mile (19¢ for 2016).
C. Charity: 14¢ per mile (still 14¢ for 2016)
12. LONG-TERM CARE INSURANCE DEDUCTION LIMITS: $380 to $4,750 (390 to 4,870 for 2016) depending on age.
13. ALTERNATIVE MINIMUM TAX (AMT) EXEMPTION AMOUNT INCREASED. The AMT exemption amount is increased to $53,600 ($83,400 if married filing jointly and $41,700 if married filing separately).
14. FOREIGN EARNED INCOME EXCLUSION: $100,800 ($101,300 for 2016).
15. SOCIAL SECURITY TAXES FOR NEXT YEAR 2016:
A. Minimum earnings to be covered by SS increases from $4,880 to $5,040 ($1,260 per quarter).
B. Maximum earnings allowed for 65 remain the same at $15,720.
C. Maximum amount subject to FICA stays the same at $118,500.
D. Early retirement age is 62, full retirement 67 (born 1960 & later).
16. ESTATE AND GIFT TAXES:
A. Estate/gift tax exclusion — $5,430,00 (for 2015), $5,450,000 (for 2016)
B. Annual gift tax exclusion — $14,000 (for 2015), $14,000(for 2016)
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Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. The firm celebrates its 38th anniversary in 2015.
