One thing the reporters are good at is the headlines:
7 Big Tax Changes in 2015
New Tax Laws for 2015: 10 Important Changes You Need to Know
Five Tax Law Changes In 2015 You Need To Know
Looking at these, you would think that there’s something big and important happening, and you’re left behind. Worry not. 2015 does not bring much new to the table. This is largely due to the last-minute extension of many tax laws that were supposed to expire for 2014. In late December, the Congress extended those provisions retroactively to 2014, so it is business as usual.
“Business as usual” means that they got extended for 2014 only, and in 2015 we will have to wonder again – will they or will they not extend it to cover 2015. But it will be later in the year, and for now we’re OK.
The only change that really qualifies as a change is the ObamaCare penalty for not having health insurance. This law is often referred to as ACA – Affordable Care Act. As with all government initiatives, the rules are ridiculously complicated. You have penalties, but then some credits to offset penalties, and couple new IRS forms – and it goes on and on and on. The bad news is that it can cost you a little bit of money if you did not have health insurance in 2014. The good news is that you really do not need to read all the rules and understand the new IRS forms because your tax software or your accountant will do the numbers for you.
If you really want to learn about these ObamaCare rules – try this 20-page (!) official IRS Publication 5187. If you want something more digestible, read this unofficial ObamaCare explanation or Google your heart out, as there are thousands of articles and blogs out there, ranging from totally worthless to marginally helpful.
The rest of the “huge” and “important” changes are mostly routine annual adjustments to the IRS limits on this and that. Every year, you can contribute a little bit more to an IRA or 401(k), every year personal deductions and exemptions inch a little higher, every year some credits change slightly.
Again, it’s not something you have to research. This is what tax software and accountants are for. If you must know exactly how much you are allowed to put into your IRA in 2014 or whether you qualify for a rollover – just ask.