A Miami Audit Firm Informs You of 8 Tax Law Changes for 2015
For many, the dawn of a new year marks the start of tax season. The earlier you begin prepping your tax filings, the more time you have to ensure that you file all information correctly for your small business and can better determine all deductions your business is qualified to make. Once you have everything in order, look ahead to the 2015 tax law alterations that will impact your tax filing for next year.
At Verdeja, De Armas & Trujillo, LLC, we want to ensure that your yearly tax filing goes as smooth as possible and that you are prepared for the tax law modifications for next year. Our Miami audit firm has outlined eight important changes to the federal IRS tax code that you need to be aware of for 2016.
The Eight Tax Law Changes
Prepare your small business for next tax season by embracing these changes:
1. The IRS has adjusted the income tax brackets, the highest being 39.6 percent, for taxpayers who earn over $413,200 and married couples who make over $464,850 a year.
2. The mileage rate for those who are self-employed professionals or who use their vehicles for business trips has increased to 57.5 cents per mile.
3. Deduction amounts have increased for 2015, which include:
- Single Filers: $6,300
- Joint Filers: $12,600
- Married Filing Separately: $6,300
- Head-of-Household Filers: $9,250
- Surviving Spouses: $12,600
4. The personal exemption amount has increased to $4,000 for 2015.
5. In the event that your business thrives in virtual currency, such as Bitcoin, you must include the fair market value when filing your taxes. This is because the IRS considers it to be taxable income. Also, different calculations do apply if you invest in virtual currency or receive it as compensation for services that you provide to your clientele.
6. Every year the Affordable Care Act requires taxpayers to have health insurance or pay a tax penalty. For 2015, the penalty for being uninsured is 2% of total household income or $325 per person.
7. For 2015, taxpayers are able to contribute $18,000 to a 401(k) retirement plan. Also the annual limit on employee contributions to flexible spending accounts (FSAs) has increased to $2,550 for certified health care expenses. If you wish to contribute more to your retirement savings, you must inform payroll to alter your contribution.
8. Lastly, the Alternative Minimum Tax (AMT) exemption for 2015 has increased to $53,600 for individuals or $83,400 for joint filers.
At Verdeja, De Armas & Trujillo, LLC, our Miami audit firm would like to ensure that your business successfully files taxes according to the changes made for 2016. Our team of dedicated professionals in our audit department provides compliance auditing, reviews and compilations for our clients to ensure that everything meets the newly made modifications for the following tax season. Contact us today for a consultation!