1. President Obama signed the Tax Increase Prevention Act of 2014 on December 19, 2014. This provision extends certain tax breaks that were set to expire at the end of this year. Please note that the following tax breaks were extended through December 31, 2014:
• The tax deduction of expenses of elementary and secondary school teachers;
• The tax exclusion of imputed income from the discharge of indebtedness for a principal residence;
• The equalization of the tax exclusion for employer-provided commuter transit and parking benefits;
• The tax deduction of mortgage insurance premiums;
• The tax deduction of state and local general sales taxes in lieu of state and local income taxes;
• The tax deduction of contributions of real property interests for conservation purposes;
• The tax deduction of qualified tuition and related expenses; and
• The tax exemption of distributions from individual retirement accounts for charitable purposes.
2. Affordable Care Act is in full force right now. You must report healthcare coverage on your tax return. If you did not have healthcare coverage, then you are required to make a shared responsibility payment. A penalty of 1% of your income above the tax filing threshold, or $95 per adult and $47.50 per child (up to a family maximum of $285) - whichever is greater.
3. The personal exemption amount is increased to $3950.
4. The standard mileage rate is reduced to 56 cents per mile.
5. For 2015, the rules for Flexible Spending Accounts have changed. You will no longer be able to roll over $500 to the next year. You would be deemed ineligible for the FSA.
6. IRA contribution limits remain the same for 2014 and 2015 – you may contribute $5,500 with a catch of an extra $1,000 for those age 50 and over.
7. For 2015, 401(k) contributions limits have risen to $18,000.
8. The myRA debuts: Another kind of retirement account is brand new, created by the U.S. Department of the Treasury and is designed to be offered through employers. The myRA, my Retirement Account, is small is scale, but still useful, especially as a way to start saving money for retirement. It charges no fees and offers modest, guaranteed growth, so you won't lose money. You can start a myRA with as little as $25 and can add just $5 at a time. The contribution limits are the same as IRAs - currently $5,500, or $6,500 for those 50 years of age and older. Once your account reaches $15,000 in value, it has to be rolled over to a private sector Roth IRA.
8. The myRA debuts: Another kind of retirement account is brand new, created by the U.S. Department of the Treasury and is designed to be offered through employers. The myRA, my Retirement Account, is small is scale, but still useful, especially as a way to start saving money for retirement. It charges no fees and offers modest, guaranteed growth, so you won't lose money. You can start a myRA with as little as $25 and can add just $5 at a time. The contribution limits are the same as IRAs - currently $5,500, or $6,500 for those 50 years of age and older. Once your account reaches $15,000 in value, it has to be rolled over to a private sector Roth IRA.
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