HUNTSVILLE, Ala. (WHNT) — The new year is just days away and that means tax season is just around the corner. There are several big tax changes coming in 2015.
According to Huntsville CPA Paul Lindgren, the most important one is a change from the Affordable Care Act. In 2015, tax penalties are increasing for the uninsured. Uninsured families will now face a $325 fine per person, up from a $95 fine per person in 2014.
Lindgren says to look for additional tax forms in the mail to prove you're insured. If you get your taxes professionally prepared, bring a copy of your insurance card.
The annual limit on employee contributions to flexible spending accounts is now $2,550 for qualified health care expenses. That's up $50 from 2014.
The limit on employee contributions to a 401(k) plan will increase to $18,000, up $500 from 2014's cap. According to Lindgren, this is good news.
"There's not a lot of options for retirement any more, if you want to maximize the amount of contributions you make for retirement, you want to take advantage of the 401(k) plan," said Lindgren.
If you plan to make charitable donations this holiday season, make sure you keep track of them.
"Make sure you retain a receipt from the organization you donated to. The IRS is becoming, they're scrutinizing those donations a little more this year," Lindgren said.
The standard deduction – that is, the basic tax break extended to all Americans each year -- rises to $6,300 for single filers and $12,600 for married taxpayers filing jointly in 2015.
Income tax thresholds will also be adjusted for inflation. The highest tax rate of 39.6%, will now apply to single filers who make over $413,200 and married couples making $464,850.
Starting in 2015, you can only make one single rollover from an IRA in a 12-month period.