Key Numbers for 2015
Every year, the Internal Revenue Service (IRS) announces
cost-of-living adjustments that affect contribution limits for retirement plans,
thresholds for deductions and credits, and standard deduction
and personal exemption amounts. Here are a
few of the key adjustments for 2015.
Retirement plans
- Employees who participate in 401(k), 403(b), and most 457
plans can defer up to $18,000 in compensation in 2015 (up from $17,500 in 2014);
employees age 50 and older can defer up to an additional
$6,000 in 2015 (up from
$5,500 in 2014)
- Employees participating in a SIMPLE retirement plan can
defer up to $12,500 in 2015 (up from $12,000 in 2014), and employees age
50 and older will be able to defer up to an additional $3,000 in 2015 (up
from $2,500 in 2014)
IRAs
The limit on annual contributions to an IRA remains
unchanged at $5,500 in 2015, with individuals age 50 and older able to
contribute an additional $1,000. For individuals who are covered by a workplace
retirement plan, the deduction for contributions to a traditional IRA is
phased out for the following modified adjusted gross income (AGI) ranges:
|
2014 |
2015 |
| Single / head of household (HOH) |
$60,000 - $70,000 |
$61,000 - $71,000 |
| Married filing jointly (MFJ) |
$96,000 - $116,000 |
$98,000 - $118,000 |
| Married filing separately (MFS) |
$0 - $10,000 |
$0 - $10,000 |
Note:
The 2015 phaseout range is $183,000 - $193,000 when the individual making the
IRA contribution is not covered by a workplace retirement plan, but is filing
jointly with a spouse who is covered.
The modified AGI phaseout ranges for individuals making contributions
to a Roth IRA are:
|
2014 |
2015 |
| Single / HOH |
$114,000 - $129,000 |
$116,000 - $131,000 |
| MFJ |
$181,000 - $191,000 |
$183,000 - $193,000 |
| MFS |
$0 - $10,000 |
$0 - $10,000 |
Estate and gift tax
- The annual gift tax exclusion remains $14,000
- The gift and estate tax basic exclusion amount for 2015 is $5,430,000, up from $5,340,000 in 2014
Personal exemption
The personal exemption amount has increased to $4,000 (up
from $3,950 in 2014). For 2015, personal exemptions begin to phase out once
AGI exceeds $258,250 (Single), $309,900 (MFJ), $284,050 (HOH), or $154,950 (MFS).
Note:
These same AGI thresholds apply in determining if
itemized deductions may be limited.
The corresponding 2014 threshold amounts were $254,200 (single), $305,050 (MFJ), $279,650 (HOH), and $152,525 (MFS).
Standard deduction
The standard deduction amounts have been adjusted as follows:
|
2014 |
2015 |
| Single |
$6,200 |
$6,300 |
| HOH |
$9,100 |
$9,250 |
| MFJ |
$12,400 |
$12,600 |
| MFS |
$6,200 |
$6,300 |
Note:
The 2015 additional standard deduction amount (age 65 or older, or blind) is $1,550 if
filing as single or HOH (unchanged from 2014) or $1,250 (up from $1,200 in
2014) for all other filing statuses.
Special rules apply if you can be claimed as a dependent by another taxpayer.
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