Nonprofit Resources
Key Federal Tax Figures for 2015
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Automobile Mileage Rate Volatility
The tax-free mileage rate for use of a vehicle for business increases in 2015, to 57.5 cents per mile. (It was 56.0 cents per mile in 2014.) Employers who routinely reimburse employee use of personal vehicles for business or ministry use may increase reimbursement to this rate.This same rate (57.5 cents per mile) may also be used for valuing the personal use of an employer-owned vehicle, but only if the vehicle’s value at the beginning of the year is $16,000 or less. This amount ($16,000) was the same in 2014, too.On the other hand, the tax deductible mileage rate for moving and medical decreases to 23.0 cents per mile (it was 23.5 cents per mile in 2014). The regulatory definitions that determine the factors used for the business mileage rate and moving/medical mileage rate are different. While they usually rise or fall in the same direction, they did not this year.
Other Inflation Adjustments for 2015
Inflation adjustments affect many areas, but not everything. Examine the specific issues that affect your organization carefully. Some examples:
|
In 2014 and |
In 2015 and |
|
| Foreign earned income exclusion |
$99,200 |
$100,800 |
| Maximum annual contribution to defined contribution plan |
$52,000 |
$53,000 |
| Maximum salary deduction for 401(k)/403(b) |
$17,500 |
$18,000 |
| IRA contribution limit |
$5,500 |
$5,500 |
| IRA over 50 “catch-up” limit |
$1,000 |
$1,000 |
| Highly compensated employee limit | $115,000 | $120,000 |
Please contact your local office with any questions.
