Last week, the IRS clarified its new position on IRA rollovers. One-a-year Limit on Rollovers, IR 2014-107 (Nov. 10, 2014). In short, the IRS will only allow one rollover per year between a person's IRAs-"An individual could not make an IRA-to-IRA rollover if he or she had made such a rollover involving any of the individual’s IRAs in the preceding 1-year period." Internal Rev. Bulletin 2014-16 (Apr. 14, 2014). The IRS will begin to follow the Tax Court's interpretation of the applicable IRA laws as set out in Bobrow v. IRS, T.C. Memo 2014-21 (Jan. 28, 2014) in January 2015.
The IRS's tax forms and schedules always contain the official, updated dollar thresholds for each tax year. Consequently, the only reason to track these numbers in the abstract is for tax planning purposes and building your base of tax trivia knowledge:
The top marginal tax rate of 39.6 % affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up from $406,750 and $457,600, respectively. The other marginal rates – 10, 15, 25, 28, 33 and 35 % – and the related income tax thresholds are described in Rev Proc 2014-61.
The standard deduction has grown to $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly, up from $6,200 and $12,400, respectively, for tax year 2014. The standard deduction for heads of household rises to $9,250, up from $9,100.
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The personal exemption for tax year 2015 is up to $4,000, from the 2014 exemption of $3,950. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly). It phases out completely at $380,750 ($432,400 for married couples filing jointly.)
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The 2015 maximum Earned Income Credit amount is $6,242 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,143 for tax year 2014. The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phaseouts.
Estates of decedents who die during 2015 have a basic exclusion amount of $5,430,000, up from a total of $5,340,000 for estates of decedents who died in 2014.
For 2015, the exclusion from tax on a gift to a spouse who is not a U.S. citizen is $147,000, up from $145,000 for 2014.
For 2015, the foreign earned income exclusion breaks the six-figure mark, rising to $100,800, up from $99,200 for 2014.
The annual exclusion for gifts remains at $14,000 for 2015.
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