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With contributions from Eric Evans

Updated December 18, 2014 to include the impact of tax extenders in the Tax Increase Prevention Act of 2014.

 

Quick Reference Guide for 2015 and 2014 Federal TaxesTweet: Quick Reference Guide for 2015 and 2014 Federal #Taxes http://ctt.ec/EbR8Q+

The following guide includes many of the most important federal tax amounts for 2015, and compares them to the amounts currently applicable for 2014.

Social Security and Medicare  2015 2014
Social Security taxable wage base $118,500 $117,000
Social Security tax

Employee

Self-employed

 

6.2%

12.4%

 

6.2%

12.4%

Medicare taxable wage base No limit No limit
Medicare tax

Employee

Self-employed

 

1.45%

2.9%

 

1.45%

2.9%

Medicare surtax (generally on net investment income of married couples with modified AGI > $250,000; $200,000 for single persons) 3.8% 3.8%
Individual Retirement Accounts 2015 2014
Individual IRA, up to 100% of earned income (combined limit for traditional and/or Roth) $5,500 $5,500
Additional annual catch-up contributions for account owners age 50 and older (Roth and traditional IRA) $1,000 $1,000
Annual Qualified Plan Limits 2015 2014
Maximum compensation used to determine contributions $265,000 $260,000
Deferral limits for plans

§401(k) and §403(b)

SIMPLE

§457

 

$18,000

$12,500

$18,000

 

$17,500

$12,000

$17,500

Additional catch-up contributions for employees, age 50+

§401(k) and §403(b)

SIMPLE

§457

 

$6,000

$3,000

$6,000

 

$5,500

$2,500

$5,500

Highly Compensated Employee threshold $120,000 $115,000
Compensation defining Key Employee in top-heavy plan $170,000 $170,000
Compensation triggering Simplified Employee Pension (SEP) contribution requirement $600 $550
Maximum annual addition for Defined Contribution Plan $53,000 $52,000
Maximum annual benefit for Defined Benefit Plan $210,000 $210,000
Federal Tax Rates 2015 2014
Maximum individual income tax rate 39.6% 39.6%
Taxable income beyond which top rate begins:

Married filing jointly and
surviving spouse

Single

Head of household

Married filing separately

 

$464,850


$413,200

$439,000

$232,425

 

$457,600


$406,750

$432,200

$228,800

Maximum rate for qualified capital gains and dividends 20% 20%
Hospital insurance tax (on income
> $250,000 for married couples and $200,000 for single persons)
0.9% 0.9%
Standard Deduction 2015 2014
Married filing jointly and surviving spouse $12,600 $12,400
Single and married filing separately $6,300 $6,200
Head of household $9,250 $9,100
AMT Exemption Amounts 2015 2014
Married filing jointly and surviving spouse

 

$83,400 less
25% of AMT income
> $158,900
$82,100 less
25% of AMT income
> $156,500/
Single

 

$53,600 less
25% of AMT income
> $119,200
$52,800 less
25% of AMT income
> $117,300
Married filing separately

 

$41,700 less
25% of AMT income
> $79,450
$41.050 less
25% of AMT income
> $78,250
Personal Exemption 2015 2014
Amount $4,000 $3,950
Personal Exemption + Itemized Deduction Phase-Out 2015 2014
Phase-out begins (adjusted gross income)

Married filing jointly and
surviving spouse

Single

Head of household

Married filing separately

 

$309,900


$258,250

$284,050

$154,950

 

$305,050


$254,200

$279,650

$152,525

Driving Deductions, Per Mile 2015 2014
Business mileage 57.5¢ 56.0¢
Charitable mileage 14.0¢ 14.0¢
Medical and moving mileage 23.0¢ 23.5¢
Business Equipment 2015 2014
Maximum Section 179 expense deduction $25,000 $500,000
Phase-Out for Section 179, based on asset additions $200,000 $2,000,000
Qualified Transportation Fringe Benefit Exclusion 2015 2014
Commuter highway vehicle and transit pass, per month $130 $250
Qualified parking, per month $250 $250
Domestic Employees 2015 2014
Annual threshold when a domestic employer is liable to withhold and pay FICA for babysitters, housekeepers, etc. $1,900 $1,900
Kiddie Tax 2015 2014
For an under-age-19 child (or a full-time student under the age of 24), the net unearned income that is not subject to “kiddie tax” $2,100 $2,000
Federal Estate Tax 2015 2014
Maximum tax rate 40% 40%
Exemption amount, per decedent $5.43 million $5.34 million
Gift Tax 2015 2014
Annual amount, per recipient (without filing a gift tax return or reducing the lifetime gifting exemption amount) $14,000 $14,000
Lifetime gifting exemption $5.43 million $5.34 million
Exclusions, Deductions and Credits 2015 2014
Exclusion of gain on certain small business stock 50% 50%
Foreign income exclusion $100,800 $99,200
Bonus first-year depreciation N/A N/A
Major Expired Provisions
Includes impact of the new TIPA 2014 Act that retroactively extended expired provisions for one year, to 12.31.2014.
State and local sales tax deduction Expired Elect to deduct instead of state and local income taxes
Deduction for elementary and secondary educator expenses Expired Up to $250 of qualified expenses per year
Deduction for higher education expenses Expired Up to $4,000
Nontaxable IRA distributions to certain charities  Expired Up to $100,000
Exclusion of canceled or forgiven debt on qualified principal residence Expired Up to $2 million for married couple
Research credit Expired Depends on method elected and base amount; generally 20% of eligible expenditures
Bonus first-year depreciation, on qualified property Expired 50% if placed in service by year-end
15-year write-off for qualified leasehold and retail improvements and restaurant property Expired 15-year write-off extended through 2014
Work opportunity tax credit Expired Generally 40% of qualifying wages up to $6,000 per year
New markets tax credit Expired 24% total; up to $3.5 billion in equity investments for 2014
Energy-efficient home credit Expired Up to $2,000 per new home
Nonbusiness energy property credit Expired Up to $500 lifetime limit ($200 for windows and skylights)
Energy-efficient appliances credit Expired Not extended
Biodiesel fuels credit Expired Generally, $1.00 per gallon

 

 

 
 
KELLY NELSON
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