EASY REFERENCE TAX GUIDE 2015
2015 ESTATE AND GIFT TAX RATES The top tax rate applicable to estates and living gifts will be subject to a maximum tax rate of 40%.
Contribution Limits
Subtract Applicable Credit Below From Calculated Tax Estate Tax
Exclusion Amount
2013
Federal Credit
Gift Tax Exclusion
$5,250,000
$2,045,800
$5,250,000
2014
$5,340,000
$2,081,800
$5,340,000
2015
$5,430,000
$2,117,800
$5,430,000
Annual gift tax exclusion for non-U.S. citizen spouses
Uniform Lifetime Table 2014
2015
Regular
$5,500
$5,500
Catch-Up*
$1,000
$1,000
93
Distribution period 9.6
71
26.5
94
9.1
72
25.6
95
8.6
Roth Contribution Phase-out
73
24.7
96
8.1
74
23.8
97
7.6
75
22.9
98
7.1
76
22.0
99
6.7
No annual income limit for determining ability to convert traditional IRA to Roth IRA continues for 2015.
77
21.2
100
6.3
MAGI phase-out range for contributions to Roth IRAs in 2015 • Married filing jointly: • Married filing separately: • Single: $183,000–$193,000 $0–$10,000 $116,000–$131,000
2014
2015
$14,000
$14,000
$145,000
$147,000
78
20.3
101
5.9
79
19.5
102
5.5
80
18.7
103
5.2
Deductibility
81
17.9
104
4.9
Any amount Full deduction
82
17.1
105
4.5
$61,000 or less Full deduction
83
16.3
106
4.2
84
15.5
107
3.9
85
14.8
108
3.7
86
14.1
109
3.4
87
13.4
110
3.1
Generation-skipping tax (GST) exemption
$5,340,000
$5,430,000
Traditional IRA Deductibility Rules
IRC § 6166 2% limit for deferred estate tax payments
$1,450,000
$1,470,000
Covered by Filing Employer’s Status Retirement Plan?
Special use valuation for qualified real property
Current age
70
Distribution period 27.4
Current age
*Only taxpayers age 50 and over are eligible to make catch-up contributions.
Other Estate and Gift Planning Items
Annual gift tax exclusion
REQUIRED MINIMUM DISTRIBUTIONS
TRADITIONAL AND ROTH IRAS
$1,090,000
$1,100,000
No
Modified AGI 2014
Modified AGI 2015
Any amount
Single
$60,000 or less
QUALIFIED PLANS Maximum elective deferral to retirement plans, e.g., 401(k), 403(b) and 457 plans, and SARSEP(s)
$17,500
$18,000
Maximum elective deferral to SIMPLE 401(k) plans
$12,000
$12,500
Limit on annual additions to SEP plans
$52,000
$53,000
$550
$600
Limit on annual additions to defined contribution plans
$52,000
$53,000
Maximum annual compensation taken into account for contributions
$260,000
$265,000
Annual benefit limit under defined benefit plans
$210,000
$210,000
Threshold amount for definition of highly compensated employee
$115,000
$120,000
Threshold amount for definition of key employee/officer in top-heavy plans
$170,000
$170,000
Annual compensation threshold requiring SEP contribution
$60,001–$69,999 $61,001–$70,999
2015
$70,000 or more Neither spouse covered
Both spouses covered Married filing jointly
2014
Yes
Any amount
Any amount Full deduction
88
12.7
111
2.9
$96,000 or less
$98,000 or less Full deduction
89
12.0
112
2.6
Partial deduction
90
11.4
113
2.4
91
10.8
114
2.1
92
10.2
115 and Over
1.9
$116,000 or more $96,000 or less One spouse covered–for covered spouse
2014
2015
401(k), 403(b), SARSEP and 457 plans
$5,500
$5,500
$6,000
SIMPLE plans
$2,500
$2,500
$3,000
$118,000 or more
No deduction
$98,000 or less Full deduction Partial deduction
$96,001–$115,999 $98,001–$117,999 $116,000 or more $181,000 or less
2013
$71,000 or more No deduction
$96,001–$115,999 $98,001–$117,999
One spouse covered–for non-covered spouse
Catch-up Contribution Limits for Other Qualified Plan Types
Partial deduction
$118,000 or more
No deduction
$183,000 or less Full deduction
$181,001– $190,999
$183,001– $192,999
Partial deduction
$191,000 or more
$193,000 or more
No deduction
Long-Term Care Insurance2 Age
40 or less
41–50
51–60
61–70
Over 70
2013
$360
$680
$1,360
$3,640
$4,550
2014
$370
$700
$1,400
$3,720
$4,660
2015
$380
$710
$1,430
$3,800
$4,750
Qualified LTC contract per diem limit: $330
Provided Courtesy of Prudential Annuities, Prudential Investments, LLC, and The Prudential Insurance Company of America, Newark, NJ, and each is a business of Prudential Financial, Inc. and is solely responsible for its own financial condition and contractual obligations. Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2015 The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
Maximum Qualified LTC Premium Eligible for Deduction
2
This material does not constitute tax or legal advice. Consult with your tax and legal advisors regarding your personal circumstances. Prudential Financial, its affiliates, and/or their licensed financial representatives, distributors and representatives do not render tax, accounting, or legal advice.
0170833-00009-00 ORD203899 Ed. 02/2015 [WO# 754001]
EASY REFERENCE TAX GUIDE 2015
INCOME TAX COMPARISON
INCOME TAX COMPARISON
2014
2015
If taxable income is Over
Exemption
If taxable income is But not over
The tax is
Of the amount over
Married Filing Jointly and Surviving Spouses
Over
But not over
The tax is
Married Filing Jointly and Surviving Spouses
Single
$18,150
$0 + 10%
$0
$0
$18,450
$0 + 10%
$0
$18,150
$73,800
$1,815 + 15%
$18,150
$18,450
$74,900
$1,845 + 15%
$18,450
$73,800
$148,850
$10,163 + 25%
$73,800
$74,900
$151,200
$10,312.50 + 25%
$74,900
$148,850
$226,850
$28,925 + 28%
$148,850
$151,200
$230,450
$29,387.50 + 28%
$151,200
$226,850
$405,100
$50,765 + 33%
$226,850
$230,450
$411,500
$51,577.50 + 33%
$230,450
$405,100
$457,600
$109,588 + 35%
$405,100
$411,500
$464,850
$127,963 + 39.6%
$457,600
$464,850
—
—
Single
2014 2015 2014 2015
Married filing jointly
Of the amount over
$0
$457,600
EDUCATION INCENTIVES
PERSONAL EXEMPTIONS
$111,324 + 35%
$411,500
$129,996.50 + 39.6%
$464,850
$3,950 $4,000 $3,950 $4,000
Phase-out Begins at: $305,050 $309,900 $254,200 $258,250
Child Tax Credit: $1,000 per child phases out $50 for each $1,000 of modified AGI over $110,000 (married filing jointly), or $75,000 (single). Add’l Age 65 or Standard Deductions Annual Older, or Blind Married filing jointly 2015 $12,600 $1,250 Head of household
2015
$9,250
$1,550
Single/married filing separately
2015
$6,300
$1,550
Taxpayer Bracket
Short Term < 12 months
Hope Scholarship Credit - MAGI phase-out range: • Married filing jointly $110,000 - $130,000 • Single
Long Term > 12 months
Married filing jointly
$0
$9,075
$0 + 10%
$0
$0
$9,225
$0 + 10%
$0
$9,075
$36,900
$908 + 15%
$9,075
$9,225
$37,450
$922.50 + 15%
$9,225
25%, 28%, 33%, 35%
ordinary rate
15%
$36,900
$89,350
$5,081 + 25%
$36,900
$37,450
$90,750
$5,156.25 + 25%
$37,450
39.6%
ordinary rate
20%
$89,350
$186,350
$18,194 + 28%
$89,350
$90,750
$189,300
$18,481.25 + 28%
$90,750
Married filing jointly
$186,350
$405,100
$45,354 + 33%
$186,350
$189,300
$411,500
$46,075.25 + 33%
$189,300
$405,100
$406,750
$117,541 + 35%
$405,100
$411,500
$413,200
$119,401.25 + 35%
$411,500
Tax on net investment income: Additional 3.8% tax on lesser of net investment income or excess of Modified AGI income over $200,000 single/ $250,000 married filing jointly
$118,119 + 39.6%
$406,750
$413,200
—
$119,996.25 + 39.6%
$413,200
Alternative Minimum Tax
$406,750
—
Married Filing Separately
Married Filing Separately
$0
$9,075
$0 + 10%
$0
$0
$9,225
$0 + 10%
$0
$9,075
$36,900
$908 + 15%
$9,075
$9,225
$37,450
$922.50 + 15%
$9,225
$36,900
$74,425
$5,081 + 25%
$36,900
$37,450
$75,600
$5,156.25 + 25%
$37,450
$74,425
$113,425
$14,463 + 28%
$74,425
$75,600
$115,225
$14,693.75 + 28%
$75,600
$113,425
$202,550
$25,383 + 33%
$113,425
$115,225
$205,750
$25,788.75 + 33%
$115,225
$202,550
$228,800
$54,794 + 35%
$202,550
$205,750
$232,425
$55,662 + 35%
$205,750
$63,981 + 39.6%
$228,800
$232,425
—
$64,998.25 + 39.6%
$232,425
$228,800
10%, 15%
—
Head of Household
ordinary rate
0%
2014
2015
Tax Rate
First
$179,500
$185,400
26%
Amounts over
$179,500
$185,400
28%
Exemption
Exemption
Married filing jointly
$82,100
$83,400
Single
$52,800
$53,600
Head of Household
2014
2015
$1,000
$1,050
Tax Rate
Next
$1,000
$1,050
10%
Amounts over
$2,000
$2,100
Parent’s rate
$12,950
$0 + 10%
$0
$0
$13,150
$0 + 10%
$0
$12,950
$49,400
$1,295 + 15%
$12,950
$13,150
$50,200
$1,315 + 15%
$13,150
$49,400
$127,550
$6,763 + 25%
$49,400
$50,200
$129,600
$6,872.50 + 25%
$50,200
$127,550
$206,600
$26,300 + 28%
$127,550
$129,600
$209,850
$26,722.50 + 28%
$129,600
$0
$50,000
15%
$206,600
$405,100
$48,434 + 33%
$206,600
$209,850
$411,500
$49,192.50 + 33%
$209,850
$50,000
$75,000
25%
$405,100
$432,200
$113,939 + 35%
$405,100
$411,500
$439,000
$115,737 + 35%
$411,500
$75,000
$100,000
34%
$123,424+ 39.6%
$432,200
$439,000
—
$125,362 + 39.6%
$439,000
$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%
$432,200
—
Estates and Trusts: Tax rates are graduated from 15% to 39.6%. Income over $12,150 will be taxed at 39.6%
Corporations (2010–2015)1
Estates and Trusts: Tax rates are graduated from 15% to 39.6%. Income over $12,300 will be taxed at 39.6%
Not Over
Tax Rate
Qualified personal service corporations are taxed at a flat 35% of taxable income.
1
2015
$113,950–$143,950
$115,750–$145,750
$76,000–$91,000
$77,200–$92,200
Others
Student Loan Interest—Maximum Itemized Deduction $2,500 MAGI Phase-outs
2014
2015
$130,000–$160,000
$130,000–$160,000
Others
$65,000–$80,000
$65,000–$80,000
Deductibility period
No time limit
No time limit
SOCIAL SECURITY 50% Taxable
85% Taxable
Married filing jointly
$32,000
$44,000
Single
$25,000
$34,000
Maximum Earnings Before Social Security Benefits are Reduced 2014
2015
If under full retirement age, lose $1 for every $2 earned
$15,480
$15,720
In the year of retirement, lose $1 for every $3 earned in months prior to full retirement
$41,400
$41,880
No Limit
No Limit
No Tax
$0
Taxable Income Over
2014
Base Amount of Modified AGI Causing Social Security Benefits to be Taxable
Kiddie Tax First
$55,000 - $65,000
Exclusion of U.S. Savings Bond Income MAGI Phase-outs
Capital Gains and Qualifying Dividends Tax Rate (2015)
Single
Education Savings Accounts(Education IRAs) - $2,000 Contribution Limit Qualified withdrawals include K-12 expenses. Qualified Tuition Programs (Section 529 plans) - Distributions after 12/31/2001 used for qualified higher education expenses are income tax free. Lifetime Learning Credit - Up to 20% of up to $10,000 tuition paid, calculated per taxpayer. MAGI phase-out range: • Married filing jointly $110,000 - $130,000 • Single $55,000 - $65,000 American Opportunity Tax Credit - Extended through 2017. MAGI phase-out range: • Married filing jointly $160,000 - $180,000 • Single $80,000 - $90,000
At full retirement age
Maximum Compensation Subject to FICA Taxes OASDI (Social Security) maximum HI (Medicare) maximum
2014
2015
$117,000
$118,500
No limit
No limit
OASDI tax rate: 12.4% self-employed, 6.2% employees, 6.2% employers. HI tax rate: 2.9%self-employed, 1.45% employees, 1.45% employers. For HI, additional 0.9% on total wages for household income over $250,000 married filing jointly, $125,000 married filing separately, and $200,000 for others.
Contribution Limits
Subtract Applicable Credit Below From Calculated Tax Estate Tax
Exclusion Amount
2013
Federal Credit
Gift Tax Exclusion
$5,250,000
$2,045,800
$5,250,000
2014
$5,340,000
$2,081,800
$5,340,000
2015
$5,430,000
$2,117,800
$5,430,000
Annual gift tax exclusion for non-U.S. citizen spouses
Uniform Lifetime Table 2014
2015
Regular
$5,500
$5,500
Catch-Up*
$1,000
$1,000
93
Distribution period 9.6
71
26.5
94
9.1
72
25.6
95
8.6
Roth Contribution Phase-out
73
24.7
96
8.1
74
23.8
97
7.6
75
22.9
98
7.1
76
22.0
99
6.7
No annual income limit for determining ability to convert traditional IRA to Roth IRA continues for 2015.
77
21.2
100
6.3
MAGI phase-out range for contributions to Roth IRAs in 2015 • Married filing jointly: • Married filing separately: • Single: $183,000–$193,000 $0–$10,000 $116,000–$131,000
2014
2015
$14,000
$14,000
$145,000
$147,000
78
20.3
101
5.9
79
19.5
102
5.5
80
18.7
103
5.2
Deductibility
81
17.9
104
4.9
Any amount Full deduction
82
17.1
105
4.5
$61,000 or less Full deduction
83
16.3
106
4.2
84
15.5
107
3.9
85
14.8
108
3.7
86
14.1
109
3.4
87
13.4
110
3.1
Generation-skipping tax (GST) exemption
$5,340,000
$5,430,000
Traditional IRA Deductibility Rules
IRC § 6166 2% limit for deferred estate tax payments
$1,450,000
$1,470,000
Covered by Filing Employer’s Status Retirement Plan?
Special use valuation for qualified real property
Current age
70
Distribution period 27.4
Current age
*Only taxpayers age 50 and over are eligible to make catch-up contributions.
Other Estate and Gift Planning Items
Annual gift tax exclusion
REQUIRED MINIMUM DISTRIBUTIONS
TRADITIONAL AND ROTH IRAS
$1,090,000
$1,100,000
No
Modified AGI 2014
Modified AGI 2015
Any amount
Single
$60,000 or less
QUALIFIED PLANS Maximum elective deferral to retirement plans, e.g., 401(k), 403(b) and 457 plans, and SARSEP(s)
$17,500
$18,000
Maximum elective deferral to SIMPLE 401(k) plans
$12,000
$12,500
Limit on annual additions to SEP plans
$52,000
$53,000
$550
$600
Limit on annual additions to defined contribution plans
$52,000
$53,000
Maximum annual compensation taken into account for contributions
$260,000
$265,000
Annual benefit limit under defined benefit plans
$210,000
$210,000
Threshold amount for definition of highly compensated employee
$115,000
$120,000
Threshold amount for definition of key employee/officer in top-heavy plans
$170,000
$170,000
Annual compensation threshold requiring SEP contribution
$60,001–$69,999 $61,001–$70,999
2015
$70,000 or more Neither spouse covered
Both spouses covered Married filing jointly
2014
Yes
Any amount
Any amount Full deduction
88
12.7
111
2.9
$96,000 or less
$98,000 or less Full deduction
89
12.0
112
2.6
Partial deduction
90
11.4
113
2.4
91
10.8
114
2.1
92
10.2
115 and Over
1.9
$116,000 or more $96,000 or less One spouse covered–for covered spouse
2014
2015
401(k), 403(b), SARSEP and 457 plans
$5,500
$5,500
$6,000
SIMPLE plans
$2,500
$2,500
$3,000
$118,000 or more
No deduction
$98,000 or less Full deduction Partial deduction
$96,001–$115,999 $98,001–$117,999 $116,000 or more $181,000 or less
2013
$71,000 or more No deduction
$96,001–$115,999 $98,001–$117,999
One spouse covered–for non-covered spouse
Catch-up Contribution Limits for Other Qualified Plan Types
Partial deduction
$118,000 or more
No deduction
$183,000 or less Full deduction
$181,001– $190,999
$183,001– $192,999
Partial deduction
$191,000 or more
$193,000 or more
No deduction
Long-Term Care Insurance2 Age
40 or less
41–50
51–60
61–70
Over 70
2013
$360
$680
$1,360
$3,640
$4,550
2014
$370
$700
$1,400
$3,720
$4,660
2015
$380
$710
$1,430
$3,800
$4,750
Qualified LTC contract per diem limit: $330
Provided Courtesy of Prudential Annuities, Prudential Investments, LLC, and The Prudential Insurance Company of America, Newark, NJ, and each is a business of Prudential Financial, Inc. and is solely responsible for its own financial condition and contractual obligations. Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. © 2015 The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
Maximum Qualified LTC Premium Eligible for Deduction
2
This material does not constitute tax or legal advice. Consult with your tax and legal advisors regarding your personal circumstances. Prudential Financial, its affiliates, and/or their licensed financial representatives, distributors and representatives do not render tax, accounting, or legal advice.
0170833-00009-00 ORD203899 Ed. 02/2015 [WO# 754001]
EASY REFERENCE TAX GUIDE 2015
INCOME TAX COMPARISON
INCOME TAX COMPARISON
2014
2015
If taxable income is Over
Exemption
If taxable income is But not over
The tax is
Of the amount over
Married Filing Jointly and Surviving Spouses
Over
But not over
The tax is
Married Filing Jointly and Surviving Spouses
Single
$18,150
$0 + 10%
$0
$0
$18,450
$0 + 10%
$0
$18,150
$73,800
$1,815 + 15%
$18,150
$18,450
$74,900
$1,845 + 15%
$18,450
$73,800
$148,850
$10,163 + 25%
$73,800
$74,900
$151,200
$10,312.50 + 25%
$74,900
$148,850
$226,850
$28,925 + 28%
$148,850
$151,200
$230,450
$29,387.50 + 28%
$151,200
$226,850
$405,100
$50,765 + 33%
$226,850
$230,450
$411,500
$51,577.50 + 33%
$230,450
$405,100
$457,600
$109,588 + 35%
$405,100
$411,500
$464,850
$127,963 + 39.6%
$457,600
$464,850
—
—
Single
2014 2015 2014 2015
Married filing jointly
Of the amount over
$0
$457,600
EDUCATION INCENTIVES
PERSONAL EXEMPTIONS
$111,324 + 35%
$411,500
$129,996.50 + 39.6%
$464,850
$3,950 $4,000 $3,950 $4,000
Phase-out Begins at: $305,050 $309,900 $254,200 $258,250
Child Tax Credit: $1,000 per child phases out $50 for each $1,000 of modified AGI over $110,000 (married filing jointly), or $75,000 (single). Add’l Age 65 or Standard Deductions Annual Older, or Blind Married filing jointly 2015 $12,600 $1,250 Head of household
2015
$9,250
$1,550
Single/married filing separately
2015
$6,300
$1,550
Taxpayer Bracket
Short Term < 12 months
Hope Scholarship Credit - MAGI phase-out range: • Married filing jointly $110,000 - $130,000 • Single
Long Term > 12 months
Married filing jointly
$0
$9,075
$0 + 10%
$0
$0
$9,225
$0 + 10%
$0
$9,075
$36,900
$908 + 15%
$9,075
$9,225
$37,450
$922.50 + 15%
$9,225
25%, 28%, 33%, 35%
ordinary rate
15%
$36,900
$89,350
$5,081 + 25%
$36,900
$37,450
$90,750
$5,156.25 + 25%
$37,450
39.6%
ordinary rate
20%
$89,350
$186,350
$18,194 + 28%
$89,350
$90,750
$189,300
$18,481.25 + 28%
$90,750
Married filing jointly
$186,350
$405,100
$45,354 + 33%
$186,350
$189,300
$411,500
$46,075.25 + 33%
$189,300
$405,100
$406,750
$117,541 + 35%
$405,100
$411,500
$413,200
$119,401.25 + 35%
$411,500
Tax on net investment income: Additional 3.8% tax on lesser of net investment income or excess of Modified AGI income over $200,000 single/ $250,000 married filing jointly
$118,119 + 39.6%
$406,750
$413,200
—
$119,996.25 + 39.6%
$413,200
Alternative Minimum Tax
$406,750
—
Married Filing Separately
Married Filing Separately
$0
$9,075
$0 + 10%
$0
$0
$9,225
$0 + 10%
$0
$9,075
$36,900
$908 + 15%
$9,075
$9,225
$37,450
$922.50 + 15%
$9,225
$36,900
$74,425
$5,081 + 25%
$36,900
$37,450
$75,600
$5,156.25 + 25%
$37,450
$74,425
$113,425
$14,463 + 28%
$74,425
$75,600
$115,225
$14,693.75 + 28%
$75,600
$113,425
$202,550
$25,383 + 33%
$113,425
$115,225
$205,750
$25,788.75 + 33%
$115,225
$202,550
$228,800
$54,794 + 35%
$202,550
$205,750
$232,425
$55,662 + 35%
$205,750
$63,981 + 39.6%
$228,800
$232,425
—
$64,998.25 + 39.6%
$232,425
$228,800
10%, 15%
—
Head of Household
ordinary rate
0%
2014
2015
Tax Rate
First
$179,500
$185,400
26%
Amounts over
$179,500
$185,400
28%
Exemption
Exemption
Married filing jointly
$82,100
$83,400
Single
$52,800
$53,600
Head of Household
2014
2015
$1,000
$1,050
Tax Rate
Next
$1,000
$1,050
10%
Amounts over
$2,000
$2,100
Parent’s rate
$12,950
$0 + 10%
$0
$0
$13,150
$0 + 10%
$0
$12,950
$49,400
$1,295 + 15%
$12,950
$13,150
$50,200
$1,315 + 15%
$13,150
$49,400
$127,550
$6,763 + 25%
$49,400
$50,200
$129,600
$6,872.50 + 25%
$50,200
$127,550
$206,600
$26,300 + 28%
$127,550
$129,600
$209,850
$26,722.50 + 28%
$129,600
$0
$50,000
15%
$206,600
$405,100
$48,434 + 33%
$206,600
$209,850
$411,500
$49,192.50 + 33%
$209,850
$50,000
$75,000
25%
$405,100
$432,200
$113,939 + 35%
$405,100
$411,500
$439,000
$115,737 + 35%
$411,500
$75,000
$100,000
34%
$123,424+ 39.6%
$432,200
$439,000
—
$125,362 + 39.6%
$439,000
$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%
$432,200
—
Estates and Trusts: Tax rates are graduated from 15% to 39.6%. Income over $12,150 will be taxed at 39.6%
Corporations (2010–2015)1
Estates and Trusts: Tax rates are graduated from 15% to 39.6%. Income over $12,300 will be taxed at 39.6%
Not Over
Tax Rate
Qualified personal service corporations are taxed at a flat 35% of taxable income.
1
2015
$113,950–$143,950
$115,750–$145,750
$76,000–$91,000
$77,200–$92,200
Others
Student Loan Interest—Maximum Itemized Deduction $2,500 MAGI Phase-outs
2014
2015
$130,000–$160,000
$130,000–$160,000
Others
$65,000–$80,000
$65,000–$80,000
Deductibility period
No time limit
No time limit
SOCIAL SECURITY 50% Taxable
85% Taxable
Married filing jointly
$32,000
$44,000
Single
$25,000
$34,000
Maximum Earnings Before Social Security Benefits are Reduced 2014
2015
If under full retirement age, lose $1 for every $2 earned
$15,480
$15,720
In the year of retirement, lose $1 for every $3 earned in months prior to full retirement
$41,400
$41,880
No Limit
No Limit
No Tax
$0
Taxable Income Over
2014
Base Amount of Modified AGI Causing Social Security Benefits to be Taxable
Kiddie Tax First
$55,000 - $65,000
Exclusion of U.S. Savings Bond Income MAGI Phase-outs
Capital Gains and Qualifying Dividends Tax Rate (2015)
Single
Education Savings Accounts(Education IRAs) - $2,000 Contribution Limit Qualified withdrawals include K-12 expenses. Qualified Tuition Programs (Section 529 plans) - Distributions after 12/31/2001 used for qualified higher education expenses are income tax free. Lifetime Learning Credit - Up to 20% of up to $10,000 tuition paid, calculated per taxpayer. MAGI phase-out range: • Married filing jointly $110,000 - $130,000 • Single $55,000 - $65,000 American Opportunity Tax Credit - Extended through 2017. MAGI phase-out range: • Married filing jointly $160,000 - $180,000 • Single $80,000 - $90,000
At full retirement age
Maximum Compensation Subject to FICA Taxes OASDI (Social Security) maximum HI (Medicare) maximum
2014
2015
$117,000
$118,500
No limit
No limit
OASDI tax rate: 12.4% self-employed, 6.2% employees, 6.2% employers. HI tax rate: 2.9%self-employed, 1.45% employees, 1.45% employers. For HI, additional 0.9% on total wages for household income over $250,000 married filing jointly, $125,000 married filing separately, and $200,000 for others.
