New Year, New Tax Changes

As we begin a new year, many of us begin thinking about our finances and implementing proper tax planning. As you do this, it is important to take into consideration tax changes for the coming year and make adjustments as necessary. Pretty soon you will be filing your taxes for last year and now is a good time to plan ahead for 2015 and begin incorporating tax advantageous and tax reduction planning strategies into your overall plan. 
With that being said, I thought it would be a good time to highlight some key tax changes for the New Year.

Tax Items
2015 Tax Change
2014 Tax Items
The alternative minimum tax exemption
$53,600 for individuals or $83,400 for joint filers
$52,800 for individuals or $82,100 for joint filers
Basic exclusion amount for estates of individuals who die during
$5.43 million
$5.34 million
Maximum earned income credit for married couples who file jointly and who have 3 or more qualifying children
$6,242
$6,143
New limit for employee contributions to employer-sponsored health care flexible spending arrangements
$2,550
$2,500
Increased limit of foreign-earned income exclusion
$100,800
$99,200
The contribution limit for a Traditional IRA
$5,500 or $6500 if your age 50 or older
$5,500 or $6500 if your age 50 or older
Limit on employee contributions to a 401(k) plan
$18,000 or $24,000 age 50 or older
$17,500 or $23,000 age 50 or older
New income limitation for itemized deductions
$258,250 for individuals and $309,900 for joint filers
$254,200 for individuals and $305,050 for joint filers
Standard Deduction:
Married Filing Joint (MFJ) or Qualifying Widow(er) (QW)
$12,600
$12,400
Single
$6,300
$ 6,200
Head of Household (HOH)
$9,250
$9,100
Married Filing Separate (MFS)
$6,300
$6,200
Personal Exemption
$4,000
$3,950

An effective retirement plan is not just about income, it is also about taking advantage of tax strategies for your unique situation. In addition, it is important to identify an IRA exit strategy to help minimize your potential tax implications. To meet with one of our retirement planners for a Complete Planning Review, give us a call (775) 853-9033. We look forward to speaking with you.