WV Farm Bureau Magazine February 2015 | Page 21

Federal and State Tax UpdateWhat’s New for 2015 Emily R. Lambright The start of a new year brings forth new tax information from the Internal Revenue Service and the West Virginia State Tax Department. Listed below are some of the new tax-related facts and figures for taxpayers, effective as of year 2015. West Virginia State Tax News • The State Tax Department announced that, new for year 2015, businesses will no longer be required to pay state business franchise tax. • City sales tax expands under the new The West Virginia Municipal Home Rule program. The program allows certain cities in the State to assess their own sales tax. The West Virginia Municipal Home Rule Board announced that 16 cities that applied for the Home Rule pilot program were approved and will join Bridgeport, Charleston, Huntington and Wheeling in assessing a city sales tax starting later in year 2015. The new cities are Bluefield, Buckhannon, Charles Town, Clarksburg, Dunbar, Fairmont, Martinsburg, Milton, Morgantown, Nitro, Parkersburg, Ranson, Shinnston, South Charleston, Vienna and Weirton. The board also approved Charleston’s plan to increase its city sale tax by a half-cent per dollar. Federal Tax News The Internal Revenue Service has announced the following changes in deductions and limitations: • The standard deduction has increased to $6,300 from $6,200 in 2014 for Filing Status Single, to $12,600 from $12,400 for Filing Status Joint or Surviving Spouse and to $9,250 from $9,100 for Filing Status Head of Household. • The personal exemption has increased to $4,000 from $3,950 in 2014. • Contribution Amounts to Qualified Plans Increased: 401(k) elective deferral li