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Things you should know for the 2015 tax year.

It’s that time of year again. Now that the holidays are behind us it’s time to get ready for the first hurdle of the year, filing your taxes. While most of us aren’t completely familiar with the tax laws (few are) it’s probably a good idea to be aware of some of the basics.

Tax gifting limits: IRS has raised the limit in 2015 on tax-free transfers at death or during life, known as the basic exclusion. The max gifting limits for 2015 will go up from $5.34 million (in 2014) to $5.43 million per person (in 2015). Should you exceed this limit, you (or your heirs) will pay taxes of up to 40%.

There have also been some recent changes to the capital gain tax. Depending on how you filed last year, things might have changed.

1) The Income Threshold–For those who are in the 10-15% categories, you will make 0% payments on those dividends which are eligible and most other capital gains.
2) The Qualifying Dividends–If you have received any sort of income under this category, it’s going to be taxed just like long-term capital gains are.
3)The Tax Rate–If you fall under the 25, 33 and 35 percent brackets, your payouts on capital gains will be about 15%.
4)The Tax Rate– If you fall into the 39.6% and above, you will have to payout about 20%.

For the rest of us there are the standard deductions for which there is also some new information. According to several statistics, at least 2-3 people in every household just goes with the standard deductions during tax time. This information will be of particular interest to those individuals.
1) Single– If you are single and making $6,200 or less, you will get back a credit of at least $100.
2) Married, but filing separately—If you are making $6,200 or less, you too will get an $100 back in your taxes.
3) Head of the Household–If you are making $9,100 or less, you will get back at least $150 when filing.
4) Married, but filing jointly and those who are widows—If you are a qualifying widow and you make $12,400 or less, you will get back at least $200. Same thing will happen for those who are married and file jointly.

The U.S. tax code is probably the most complex in the world so don’t feel bad if you’re not a pro at it. Good luck with your taxes.

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