Before you prepare your taxes for 2015, there are a few tax law changes that you may want to brush up on. Depending on your personal financial situation, these changes may have a significant impact on how much you owe — or even get you a refund.
Borrowing from Retirement Carries More Penalties
In the past, those with IRAs could borrow against their IRAs for two months without paying any tax penalties. While taxpayers can still do this, they can only do it once in a twelve month period — if they do it more frequently, they may face additional taxation.
Health Insurance Penalties Have Gone Up
Health insurance penalties were limited throughout 2014 as it was still considered a period of transition. Those who did not maintain insurance will need to pay the greater of 2% of their household income or $325 per person in penalties for 2015.
Pell Grants Can Be Used for Living Expenses
The education-based Pell Grant used to be primarily for educational expenses — tuition, books, equipment — but can now be used for living expenses (i.e. room and board) as well. This may significantly reduce the costs for students, as the Pell Grant offers a certain amount in credit for these educational needs.
Tax Brackets Have Changed for High Income Earners
Joint filers that have income of over $464,850 — or individuals with income over $413,200 — will now fall into a 39.6% tax bracket. Those who fall over $258,250 a year for individuals and $309,900 a year for married couples may also find their itemized deductions limited.
Apart from the above changes, the tax laws haven’t changed substantially in 2015. Nevertheless, if you feel at all confused, you can contact us now for a professional consultation. Doing your taxes doesn’t have to be difficult ; our friendly, knowledgeable staff members can give you the answers you need fast.
If you have questions, please contact Victor C. Belgiorno at 516-861-3704 or .