The Internal Revenue Service (IRS) has recently announced additional annual inflation adjustments that will apply to more than 50 tax provisions in the year 2016. The IRS has detailed these annual adjustments in Revenue Procedure 2015-53. These increases include tax limits for insurance, estates, learning, and foreign income exclusion. This column describes the changes that will impact people with self-only coverage in a Medical Savings Account. Another limit that the IRS announced states that the AGI amount that joint filers use to determine the reduction in the Lifetime Learning Credit will be increased. The foreign earned income exclusion and the basic exclusion amount for estates with decedents that die in 2016 is also set to be increased.
See Jeff Stimpson, IRS Increases Tax Limits for Insurance, Estates, Learning, Foreign Income Exclusion, Accounting Today, October 21, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
