01/18/2016
It’s Tax Time and the office is open for business!! Please note the following:
IRS identity fraud is on the rise and remains a big problem. Identity theft, fraud, and scams are at an all-time high according to the Internal Revenue Service. Should you receive notice from the IRS or from someone representing they are from the IRS, please do not provide any information to them until you have confirmed they are legitimate. Remember, the IRS does not initiate contact via email or telephone. Their initial contact is usually a written notice.
Changes for 2015:
Earned Income Credit
If you have no children, your maximum Earned Income Credit for 2015 is $503.00. With two children, the maximum amount is $5,548.00, and with one child, it is $3,359.00. If you have three or more qualifying children, the maximum Credit you can receive is $6,242.00 (up from $6,143.00 in 2014)
American Opportunity Tax Credit
The American Opportunity Tax Credit expanded on the Hope Credit. The income limits are higher, the credit is available for more qualified expenses, and you can use the credit for four years of post-secondary education instead of just two. In addition, you can even get a refund if you don’t owe any tax for up to 40% of the credit ($1000.00)
Health Insurance Premium Tax Credit
If individuals or families purchase health insurance through the Health Insurance Marketplace, they may qualify for the new Health Insurance Premium Tax Credit. To qualify for the credit, your household income must fall between 100 and 400 percent of the federal poverty line, you may not be claimed as a dependent on any other taxpayer’s return, and (if married) you must filed jointly, In the case of spousal abuse or abandonment, this requirement may be waived.
Individual Shared Responsibility Provision
In 2015, each individual taxpayer must carry the required “minimum essential coverage” each month, qualify for an exemption, or pay mandatory taxes. For those facing this new penalty, relief provisions have been written into the tax laws to help taxpayers transition into these new requirements. The minimum amount of insurance coverage you must carry is calculated per family member and the added together.
Marriage Penalty Relief
The standard deduction for married filing jointly has increased and expands the 15% tax bracket
Personal Exemption Phaseout
Your personal exemption for yourself, your spouse and your dependents reduce your taxable income by $4,000.00 each. However, if your adjusted gross income is over $258,250.00 ($154,950 if married filing separately, $309,900 if filing jointly, or $284,050 if filing Head of Household), your personal exemptions are reduced by 2% for each $2,500.00 or portion over these amounts. The exemption phases out completely at $380,750 ($432,400 if filing jointly, $216,200 if filing separately, $406,550 if filing as head of household).
Please call or go to www.jabfinancial.com to schedule your appointments. For addition information and changes for 2015, please go to WWW.IRS.gov
