For tax year 2015, the Internal Revenue Service announced annual inflation adjustments for more than 40 tax provisions. Key items for tax year 2015 include:
- The standard deduction rises to: $6,300 for singles and married persons filing separate returns; $12,600 for married couples filing jointly; and $ 9,250 for heads of household.
- The personal exemption rises to $4,000.
- The Alternative Minimum Tax exemption amount is $53,600 ($83,400, for married couples filing jointly).).
- The maximum Earned Income Credit amount is $6,242 for taxpayers filing jointly who have 3 or more qualifying children.
- The foreign earned income exclusion breaks the six-figure mark, rising to $100,800.
- The annual exclusion for gifts remains at $14,000 for 2015.
- The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements rises to $2,550.