Posts Tagged ‘inflation adjustments’

Inflation Adjustments for 2015

September 22, 2014

inflation-rate-of-changeThe August inflation numbers, which came out September 17, are the last ones needed to adjust most of the tax figures that change annually, including the tax rate schedules. The IRS hasn’t published the adjusted figures, but we “did the math” and updated our Reference Room to give you an advance look at the 2015 numbers. Highlights include an increase in the personal exemption amount from this year’s $3,950 to a round $4,000. The IRA contribution limit (under age 50) will remain at $5,500. (The 401k contribution limit depends on September inflation numbers, so that information isn’t available yet.) The annual gift tax exclusion amount will be unchanged at $14,000.

Inflation for the twelve-month period ending in August was 1.7%.

Inflation Adjustments for 2014 Tax Numbers

September 21, 2013
By Kaye A. Thomas

The August inflation numbers are out, and that means it is now possible to determine the 2014 amounts for many of the tax numbers that are adjusted each year for inflation. Among the numbers affected are the size of the income tax brackets, personal exemptions, and the income levels where various tax benefits begin to phase out. The IRS usually waits at least a few weeks before announcing these numbers, but we’ve done our own calculations, which are available in our Reference Room.


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