New 2015 Tax Brackets
Corporate
Income Tax Rates
Taxable income
over Not over Tax rate
$ 0 $
50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
Personal Service Corporations
Personal service
corporations are subject to a flat tax of 35% regardless of their income.
Personal Holding Company
Personal holding
companies are subject to an additional tax at 20% (15% in 2012, 2011 and 2010)
on any undistributed personal holding company income. (Code Sec. 541)
Accumulated Earnings Tax
In addition to the
regular tax, a corporation may be liable for an additional tax at 20% (15% in
2012, 2011, 2010) on accumulated taxable income in excess of $250,000 ($150,000
for personal service corporations). (Code Sec. 531)
Maximum Section 179 Expense Deduction
2013 2012 2011 2010 2009 2008
$500,000 $500,000 $500,000
$500,000 $250,000 $250,000
Phaseout--$2,000,000 for 2013; $2,000,000 for 2012;
$2,000,000 for 2011; $2,000,000 for 2010; $800,000 for 2009; $800,000 for 2008.
Note. The Sec. 179 deduction reverts by law to a
maximum of $25,000 for taxable years beginning after 2013. (That's calendar
year 2014 and subsequent years for most taxpayers.) The phaseout drops to
$200,000. It's expected that the deduction and phaseout will be increased
substantially with any tax law changes or an extender package. To date (October
24, 2014) the extender package has not been passed.
Note. An increased Sec. 179 deduction is
available to enterprise zone businesses and renewal community business in
certain situations. In addition, an increased Sec. 179 deduction is available
for certain Sec. 179 Disaster Assistance property. Check the rules in place at
the time the property is placed in service. Finally, the maximum deduction for
heavy sport utility vehicles and certain other vehicles is restricted to $25,000.
Tax Rate--Single Taxpayers--2015
Taxable income: Tax:
Over But not over Tax +%
On amount over
$ 0 $
9,225 $ 0.00
10 $ 0
9,225
37,450 922.50 15
9,225
37,450 90,750 5,156.25 25
37,450
90,750 189,300 18,481.25 28
90,750
189,300 411,500 46,075.25 33
189,300
411,500 413,200 119,401.25 35
411,500
413,200 ....... 119,996.25 39.6
413,200
Tax Rates--Married Individuals Filing Joint and Surviving
Spouses--2015
Taxable income: Tax:
Over But not over Tax
+% On amount over
$ 0 $ 18,450 $
0.00 10 $
0
18,450 74,900 1,845.00 15
18,450
74,900 151,200 10,312.50 25
74,900
151,200 230,450 29,387.50 28 151,200
230,450 411,500 51,577.50 33
230,450
411,500 464,850 111,324.00 35
411,500
464,850 ....... 129,996.50 39.6 464,850
Tax Rates--Married Individuals Filing Separate--2015
Taxable income: Tax:
Over But not over Tax +%
On amount over
$ 0 $
9,225 $ 0.00
10 $ 0
9,225 37,450 922.50 15
9,225
37,450 75,600
5,156.25 25
37,450
75,600 115,225 14,693.75 28
75,600
115,225 205,750 25,788.75 33
115,225
205,750 232,425 55,662.00 35
205,750
232,425 ....... 64,989.25 39.6
232,425
Tax Rates--Heads Of Households--2015
Taxable income: Tax:
Over But not over Tax +%
On amount over
$ 0 $ 13,150 $
0.00 10 $
0
13,150 50,200
1,315.00 15
13,150
50,200 129,600 6,872.50 25
50,200
129,600 209,850 26,722.50 28
129,600
209,850 411,500 49,192.50 33
209,850
411,500 439,000 115,737.00 35
411,500
439,000 ....... 125,362.00 39.6
439,000
Tax Rates--Estates And Trusts--2015
Taxable income: Tax:
Over But not over Tax +%
On amount over
$ 0
$2,500 0.00 15
$ 0
2,500 5,900 $
375.00 25 2,500
5,900 9,050 1,225.00 28
5,900
9,050 12,300 2,107.00 33
9,050
12,300 ..... 3,179.50 39.6
12,300
For taxpayers in the 10%
or 15% bracket--0%
For taxpayers in 25%,
28%, 33%, 35% brackets--15%
For taxpayers in 39.6%
bracket--20%
Tax on unrecaptured Sec.
1250 gain--25%
Capital gain rate on
collectibles--28%
Unearned Income Medicare Contributions Tax (Net Investment Income
Tax) --2015
Lesser of 3.8% of net
investment income from interest, dividends, annuities, royalties, rents, and
gains not generated in active trade or business or modified adjusted gross
income in excess of $200,000 ($250,000 for married filing joint; $125,000 for
married filing separate).
Additional Medicare Tax on Wages and Self-Employment Income--2015
Additional tax of 0.9%
on wages and self-employment income in excess of $200,000 ($250,000 for married
joint; $125,000 married separate).
Standard Deduction--2015
Filing Status
Standard Deduction
Married filing joint and
Heads of Household 9,250
Single individuals 6,300
Married, filing separate 6,300
Dependent's Standard
Deduction--No more than the greater of $1,050 or $350 plus the individual's
earned income.
Itemized Deduction Phaseout--2015
Start of Phaseout--
Married, filing joint
$309,900
Head of Household
$284,050
Single
$258,250
Married, filing separate
$154,950
Phaseout is lesser of 3%
of amount that exceeds threshold or 80% of itemized deductions.
Personal Exemption--2015
Amount--$4,000
Phaseout--
Filing Status
Beginning Completed
Married, filing joint and
Heads of Household
$284,050 $406,550
Unmarried Individuals
$258,250 $380,750
Married, filing separate
$154,950 $216,200
Savings Bond/Higher Education Expense Exclusion--2015
Modified adjusted gross
income phaseout--married, joint, $115,750--$145,750; all other filing status,
$77,200--$92,200
American Opportunity Tax Credit (Hope Credit) --2015
100% of first $2,000 of
education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit
$2,500)
Phaseout begins at
modified adjusted gross income of $160,000 joint return; $80,000 all others.
Credit completely phased
out at $180,000 ($90,000).
Lifetime Learning Credits--2015
20% of first $10,000 of
qualified education expenses.
Phaseout begins at
modified adjusted gross income of $110,000 joint return; $55,000 all others.
Credit completely phased
out at $160,000 joint returns; $65,000 all others.
Interest on Education Loans--2015
Maximum interest
deduction--$2,500
Modified adjusted gross
income phaseout range--Married, joint, $130,000--$160,000; all other filing
status, $65,000--$80,000
Qualified Transportation Fringe Benefit Exclusion--2015
Commuter highway vehicle
and transit pass--$130
Qualified parking--$250
Earned Income Tax Credit (EITC) --2015
Number of Qualifying Children
Item
One Two or More Three or More None
Earned Income Amount $ 9,880 $13,870
$13,870 $ 6,580
Maximum Amount of Credit 3,359 5,548 6,242 503
Threshold Phaseout (single, surviving
Completed Phaseout (single, surviving
Threshold Phaseout (married, joint) 23,630 23,630 23,630 13,750
Completed Phaseout (married, joint) 44,651
49,974 53,267 20,330
Excessive Investment
Income for Earned Income Tax Credit--$3,400
Alternative Minimum Tax--2015
First $185,400 ($92,700 married, separate) of AMTI 26%
Over $185,400 ($92,700) of AMTI (Alternative Minimum Taxable
Income) 28%
Exemptions:
Joint Filers
$83,400
Married, separate
$41,700
Single (and head of household)
$53,600
Estates & Trusts
$23,800
Child subject to Kiddie Tax $7,400 (plus child's earned income)
Exemption Phaseout:
25% of amount AMTI exceeds:
$158,900 for married, joint and surviving spouses
$119,200 single (and head of household)
$79,450 married, filing separate
Estate and Gift--2015
Unified Credit Against
Estate Tax--$5,430,000
Annual Exclusion for
Gifts--$14,000
Annual Exclusion for
Gifts to Spouse not a Citizen--$147,000
Notice of Large Gifts
Received from Foreign Persons--$15,601
Interest on Certain
Portion of Estate Tax Payable in Installments (Sec. 6166; 2%
portion) --$1,470,000
Valuation of Qualified
Real Property (special use) in Decendent's Gross Estate (Sec.
2032A) --$1,100,000
IRAs, SEPs, Pension Plans, etc . --2015
IRA (traditional and
Roth) maximum contribution--$5,500; age 50 and older catch-up--$1,000
IRA AGI deduction
phaseout start for those covered by pension plan--$98,000 (MFJ, qualifying
widow); $61,000 all others except MFS.
IRA AGI deduction
phaseout start where only spouse covered by plan starts at $183,000.
Roth IRA phaseout
$183,000 start (MFJ, qualifying widow); $116,000 all others except MFS.
SIMPLE plan, maximum
elective deferral (Sec. 408( k) (2) (C) --$12,500; age 50 catch-up--$2,500.
SEP--Maximum
contribution percentage--25%; maximum dollar amount $53,000.
Defined contribution
plan limits (Sec. 415( c) (1) (A) --$53,000.
Elective deferral limit
(Sec. 401( k); 403( b) plans) --$18,000; age 50 catch-up--$5,500.
Elective deferral limit
(Sec. 402( g) (1) --$18,000.
Deferrals under
state/local/tax exempt plan (Sec. 457( e) (15) --$18,000.
Compensation limit under
Secs. 401( a) (17), 404( l), 408( k) (3) (C), 408( k) (6) (D( ii ) is $265,000.
Control employee for
fringe benefit valuation (Sec. 1.61-21( f) (5) (i ) is $105,000.
Control employee for
fringe benefit valuation (Sec. 1.61-21( f) (5) (iii ) is $215,000.
Key employee, top heavy
plan (Sec. 416( i ) (1) (A) (i )) --$170,000
Highly compensated
employee (Sec. 414( q) (1) (B)) --$120,000
Defined benefit plan
maximum accrued amount (Sec. 415( b) (1) (A)) --$210,000
Compensation amount for
simplified employee pensions (SEPs) (Sec. 408( k) 2)) is $600.
Catch-up contributions
to SIMPLE 401( k) plans (Sec. 401( k) (11)) --$3,000
Miscellaneous--2015
Child Tax
Credit--$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS;
refundable $3,000 Sec. 24( d) (1) (B) (i )
Cafeteria Plans (maximum
salary reduction) --$2,550
Employer Health
Insurance Credit (Sec. 45R) --Average annual wage phaseout--$25,400
Unearned Income of Minor
Child (Kiddie Tax) --$1,050 ($10,500 for parental election)
Foreign Earned Income
Exclusion--$100,800
Minor Child subject to
Kiddie Tax--up to age 18 or full-time student over 18 with earned income no
more than 1/2 support under age 24.
Periodic Payments
Received under Long-Term Qualified Care Insurance Contracts or Certain Life
Insurance Contracts Per Diem Limitation--$330
Employee Health
Insurance Expense of Small Employers (Sec. 45R( d) (3) (B)) --$25,800
Home Office Safe
Harbor--$5.00 per square foot; maximum 300 sq.ft. or $1,500
Persons Against Which a
Federal Tax Lien is Not Valid-- Purchasers in a casual sale for less than
$1,520 or a mechanic's lienor that repair or improved certain residential
property if the contract price is not more than $7,590.
Property Exempt from
Levy--Property exempt from levy under Sec. 6334( a) (2) cannot exceed $8,970.
Property exempt from levy under Sec. 6334( a) (3) (books and tools for trade or
business) cannot exceed $4,540.
Social Security--2015
Taxable
Thresholds--Social security payments includable in income if modified AGI
exceeds base amounts.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.
50% inclusion threshold:
$25,000 no more than
$34,000--single, head of household, married living apart ($0 for married,
separate)
$32,000 no more than
$44,000--married filing joint
85% inclusion threshold:
OASDI Wage
Base--$118,500
Quarter of
coverage--$1,220
Retirement Savings
Test--$15,720 (under full retirement age); $41,880 (year of full retirement
age)
For a fact sheet on the
COLA go to www.socialsecurity.gov/news/press/factsheets/colafacts2015.html
Health Savings Accounts--2015
Maximum annual HSA
contributions deductible--$3,350 for individual; $6,650 for family coverage
Catch-up contributions
for individuals 55 or older (but less than 65) is $1,000.
Deductible Amounts that
define High Deductible Plan:
Annual Deductible Deductibles, Co-Payments and other Amounts
Not Less
Than but not Premiums Not to
Exceed
Self Only
$1,300 $
6,450
Family Coverage
2,600
12,900
Adoption Expenses--2015
Maximum credit for child
with special needs--$13,400
Maximum credit, other
adoptions--$13,400
Other adoptions, gross
income exclusion, qualified expenses up to $13,400
Refundable Credit for Coverage Under a Qualified Health Plan--2015
Household income Limitation amount unmarried Limitation for all
(% of poverty line) (other
than surviving spouses or HOH) other
taxpayers
Less than 200% $300 $600
200% less than 300% $750 $1,500
300% less than 400% $1,250 $2,500
Eligible Long-Term Care Premiums--2015
Attained Age Before the Close of the Tax Year Limitation on Premiums
40 or less $ 380
More than 40 but not
more than 50 710
More than 50 but not
more than 60 1,430
More than 60 but not
more than 70 3,800
More than 70 4,750
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