Presented by Rich Tegge
| INDIVIDUAL INCOME TAX | |
| Unmarried Individuals (other than Surviving Spouses and Heads of Household) | |
| If taxable income is: | The tax is: |
| $9,225 or less | 10% of taxable income |
| Over $9,225 to $37,450 | $922.50 + 15% of excess over $9,225 |
| Over $37,450 to $90,750 | $5,156.25 + 25% of excess over $37,450 |
| Over $90,750 to $189,300 | $18,481.25 + 28% of excess over $90,750 |
| Over $189,300 to $411,500 | $46,075.25 + 33% of excess over $189,300 |
| Over $411,500 to $413,200 | $119,401.25 + 35% of excess over $411,500 |
| Over $413,200 | $119,996.25 + 39.6% of excess over $413,200 |
| Married Filing Jointly and Surviving Spouses | |
| If taxable income is: | The tax is: |
| $18,450 or less | 10% of taxable income |
| Over $18,450 to $74,900 | $1,845 + 15% of excess over $18,450 |
| Over $74,900 to $151,200 | $10,312.50 + 25% of excess over $74,900 |
| Over $151,200 to $230,450 | $29,387.50 + 28% of excess over $151,200 |
| Over $230,450 to $411,500 | $51,577.50 + 33% of excess over $230,450 |
| Over $411,500 to $464,850 | $111,324 + 35% of excess over $411,500 |
| Over $464,850 | $129,996.50 + 39.6% of excess over $464,850 |
| Married Filing Separately | |
| If taxable income is: | The tax is: |
| $9,225 or less | 10% of taxable income |
| Over $9,225 to $37,450 | $922.50 + 15% of excess over $9,225 |
| Over $37,450 to $75,600 | $5,156.25 + 25% of excess over $37,450 |
| Over $75,600 to $115,225 | $14,693.75 + 28% of excess over $75,600 |
| Over $115,225 to $205,750 | $25,788.75 + 33% of excess over $115,225 |
| Over $205,750 to $232,425 | $55,662 + 35% of excess over $205,750 |
| Over $232,425 | $64,989.25 + 39.6% of excess over $232,425 |
| Heads of Household | |
| If taxable income is: | The tax is: |
| $13,150 or less | 10% of taxable income |
| Over $13,150 to $50,200 | $1,315 + 15% of excess over $13,150 |
| Over $50,200 to $129,600 | $6,872.50 + 25% of excess over $50,200 |
| Over $129,600 to $209,850 | $26,722.50 + 28% of excess over $129,600 |
| Over $209,850 to $411,500 | $49,192.50 + 33% of excess over $209,850 |
| Over $411,500 to $439,000 | $115,737 + 35% of excess over $411,500 |
| Over $439,000 | $125,362 + 39.6% of excess over $439,000 |
| Trusts and Estates | |
| If taxable income is: | The tax is: |
| $2,500 or less | 15% of taxable income |
| Over $2,500 to $5,900 | $375 + 25% of excess over $2,500 |
| Over $5,900 to $9,050 | $1,225 + 28% of excess over $5,900 |
| Over $9,050 to $12,300 | $2,107 + 33% of excess over $9,050 |
| Over $12,300 | $3,179.50 + 39.6% of excess over $12,300 |
| 2014 CORPORATE TAX | |
| If taxable income is: | The tax is: |
| $50,000 or less | 15% of taxable income |
| Over $50,000 to $75,000 | $7,500 + 25% of excess over $50,000 |
| Over $75,000 to $100,000 | $13,750 + 34% of excess over $75,000 |
| Over $100,000 to $335,000 | $22,250 + 39% of excess over $100,000 |
| Over $335,000 to $10,000,000 | $113,900 + 34% of excess over $335,000 |
| Over $10,000,000 to $15,000,000 | $3,400,000 + 35% of excess over $10,000,000 |
| Over $15,000,000 to $18,333,333 | $5,150,000 + 38% of excess over $15,000,000 |
| Over $18,333,333 | 35% |
| Personal Service Corporation | Flat tax of 35%, regardless of income |
| STANDARD DEDUCTIONS | |||
| Married Filing Jointly and Surviving Spouses | $12,600 | Married Filing Separately | $6,300 |
| Single | $6,300 | Head of Household | $9,250 |
| Married 65 or Older or Blind | $1,250 additional | Single 65 or Older or Blind | $1,550 additional |
| Dependents | Greater of $1,050 or $350 + earned income | ||
| KIDDIE TAX |
| Applies to unearned income over $2,100 for children under 18 (and full-time students between ages 19 and 24 whose earned income does not exceed half of their support for the year). The first $1,050 is tax-free, and the next $1,050 is taxed at the child’s rate. |
| ITEMIZED DEDUCTION (PEASE) LIMITATION | |||
| Married Filing Jointly and Surviving Spouses | $309,900 | Married Filing Separately | $154,950 |
| Single | $258,250 | Head of Household | $284,050 |
| PERSONAL EXEMPTION | ||
| $4,000 | ||
| Phaseout | Beginning (AGI) | Completed (AGI) |
| Married Filing Jointly and Surviving Spouses | $309,900 | $432,400 |
| Married Filing Separately | $154,950 | $216,200 |
| Single | $258,250 | $380,750 |
| Head of Household | $284,050 | $406,550 |
| AMT | |||
| Exemption | Phaseout | Start of 28% Tax Bracket | |
| Married Filing Jointly and Surviving Spouses | $83,400 | $158,900 | $185,400 |
| Married Filing Separately | $41,700 | $79,450 | $92,700 |
| Single | $53,600 | $119,200 | $185,400 |
| Head of Household | $53,600 | $119,200 | $185,400 |
| Estates and Trusts | $23,800 | $79,450 | $185,400 |
| HEALTH SAVINGS ACCOUNT (HSA) MAXIMUM CONTRIBUTION LIMITS | |
| Self-Only Coverage | If under age 55: $3,350; if age 55–65: $4,350 |
| Family Coverage | If under age 55: $6,650; if age 55–65: $7,650 |
| LONG-TERM CAPITAL GAINS AND QUALIFIED DIVIDEND TAX | ||||
| Gain or dividend in the 39.6% tax bracket | 20%* | |||
| Gain or dividend between the 15% and 39.6% tax brackets | 15%* | |||
| Gain or dividend in the 15% or lower tax brackets | 0% | |||
| *Additional 3.8% unearned income Medicare contribution tax applies to the lesser of net investment income or MAGI above the following thresholds: | ||||
| Married Filing Jointly | $250,000 | Married Filing Separately | $125,000 | |
| Single | $200,000 | Head of Household | $200,000 | |
| RETIREMENT PLAN LIMITS | |
| 401(k), SAR-SEP, Sec. 457(b), 403(b) Elective Deferral Limit | $18,000 |
| Age 50+ Catch-Up for 401(k), SAR-SEP, 457(b), 403(b) | $6,000 |
| SIMPLE Elective Deferral Limit | $12,500 |
| Age 50+ Catch-Up for SIMPLE IRA | $3,000 |
| Traditional and Roth IRA Contributions | $5,500 |
| Age 50+ Catch-Up for IRA and Roth IRA | $1,000 |
| Section 415 Limit (Defined Contribution Plan) | $53,000 |
| Defined Benefit Plan Benefit Limit | $210,000 |
| Annual Compensation Limit for QRP, SEP, and 403(b) | $265,000 |
| Highly Compensated Definition | $120,000 |
| Control Employee | $105,000 |
| Key Employee in Top-Heavy Plan Definition | $170,000 |
| IRA DEDUCTION PHASEOUT FOR ACTIVE PARTICIPANTS | ||
| Filing Status | Starting At | Fully Phased Out At |
| Single or Head of Household | $61,000 | $71,000 |
| Married Filing Jointly or Qualifying Widow(er) | $98,000 | $118,000 |
| Married Filing Jointly and Spouse Is Active Participant in an Employer Plan | $183,000 | $193,000 |
| Married Filing Separately and Either Spouse Is Active Participant in an Employer Plan | $0 | $10,000 |
| ROTH CONTRIBUTION INCOME LIMITS | ||
| Filing Status | Starting At | Fully Phased Out At |
| Single | $116,000 | $131,000 |
| Married Filing Jointly | $183,000 | $193,000 |
| Married Filing Separately | $0 | $10,000 |
| BUSINESS PLANNING | |
| Health Insurance Premium Deduction for Self-Employed | 100% |
| Limit on Employee Health Insurance Credit for Small Employers | $25,800 |
| STANDARD MILEAGE RATES | |
| Charitable Use of Automobile | 14 cents/mile |
| Medical/Moving | 23 cents/mile |
| Business Use of Automobile | 57.5 cents/mile |
| EDUCATION PLANNING | |
| U.S. Savings Bond Income Exclusion Phaseout | Modified AGI $115,750 to $145,750 (joint)
Modified AGI $77,200 to $92,200 (others) |
| Coverdell Education Savings Account (Education IRAs) Annual Contribution Limit | $2,000 |
| Coverdell Education Savings Account Phaseout | Modified AGI $190,000 to $220,000 (joint)
Modified AGI $95,000 to $110,000 (others) |
| $2,500 American Opportunity Tax (HOPE) Credit Phaseout | Modified AGI $160,000 to $180,000 (joint)
Modified AGI $80,000 to $90,000 (others) |
| $2,000 Lifetime Learning Credit Phaseout | Modified AGI $110,000 to $130,000 (joint)
Modified AGI $55,000 to $65,000 (others) |
| Phaseout of $2,500 Interest Deduction on Education Loans | Modified AGI $130,000 to $160,000 (joint)
Modified AGI $65,000 to $80,000 (others) |
| Tuition and Fees Increase at 4-Year College | Public College: 2.9% in-state student;
3.3% out-of-state student Private College: 3.7% |
| Room and Board Increase at 4-Year College | Public College: 3.2% in-state student;
3.2% out-of-state student Private College: 3.4% |
| Total Average Yearly Cost at 4-Year College | $18,943 public in-state; $32,762 public out-of-state; $42,419 private |
| FEDERAL ESTATE AND GIFT TAX | |
| Annual Gift Tax Exclusion per Donee | $14,000 |
| Annual Gift Exclusion to Non-U.S.-Citizen Spouse | $147,000 |
| Estate Tax Exemption | $5,430,000 |
| Lifetime Gift Tax Exemption | $5,430,000 |
| Generation-Skipping Transfer Tax Exemption | $5,430,000 |
| Special Use (Section 2032A) Valuation Reduction | $1,100,000 |
| LONG-TERM CARE PREMIUM DEDUCTIONS | |
| Qualified LTC Insurance Deductions: Subject to 10% of AGI medical expense floor | |
| Age | Limit |
| 40 or under | $380 |
| 41–50 | $710 |
| 51–60 | $1,430 |
| 61–70 | $3,800 |
| 71 and over | $4,750 |
| Please note: Indemnity policy benefit payments that exceed the higher of the cost of long-term care or $330 per day will be taxed as income. | |
| 2015 MEDICAID | |
| Community Spouse Resource Allowance | $23,844 minimum; $119,220 maximum |
| Monthly Maintenance Allowance | $1,966.25 minimum; $2,980.50 maximum |
| Home Equity Limit | $552,000 (state can opt to increase to $828,000) |
| “Income Cap” State Income Limit | $2,199 |
| SOCIAL SECURITY | |
| CPI Increase in Benefits | 1.7% |
| Maximum Monthly Benefit at Full Retirement | $2,663/month |
| Retirement Earnings Exempt Amount Under FRA | $15,720; $1 withheld for every $2 earned above this amount |
| Retirement Earnings Exempt Amount Year of FRA | $41,880; $1 withheld for every $3 earned above this amount |
| Earnings Amount Needed to Earn One Credit | $1,220 |
| MEDICARE | |||
| Single Filer | Married Filing Jointly | ||
| Medicare Part A Monthly Premium | $407 – fewer than
30 quarters of coverage $224 – between 30 and 39 quarters of coverage |
||
| Medicare Part A Deductible and Coinsurance
|
$1,260 for 1–60 days An additional $315 for 61–90 days
$630 for 91–150 days All costs > 150 days |
||
| Medicare Part A Deductible for Skilled Nursing Facility in a Benefit Period | $157.50 per day (21–100 days) | ||
| Medicare Part B Deductible | $147 | ||
| Medicare Part B
Monthly Premium |
$104.90
$146.90 $209.80 $272.70 $335.70 |
$85,000 or less
$85,001–$107,000 $107,001–$160,000 $160,001–$214,000 Above $214,000
|
$170,000 or less
$170,001–$214,000 $214,001–$320,000 $320,001–$428,000 Above $428,000
|
| Medicare Part D Deductible | $320
|
||
| Medicare Part D
Monthly Premium Surcharge
|
(no surcharge)
$12.30 $31.80 $51.30 $71.80
|
$85,000 or less
$85,001–$107,000 $107,001–$160,000 $160,001–$214,000 Above $214,000
|
$170,000 or less
$170,001–$214,000 $214,001–$320,000 $320,001–$428,000 Above $428,000
|
| PAYROLL TAXES | ||
| Employee | Self-Employed | |
| Social Security Tax | 6.2% | 12.4% |
| Social Security Wage Base | $118,500 | |
| Medicare Tax | 1.45% | 2.9% |
| Additional Medicare Tax | 0.9% on earnings above the following thresholds: | |
| Single or Head of Household | $200,000 | |
| Married Filing Jointly | $250,000 | |
| Married Filing Separately | $125,000 | |
This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.
IRS CIRCULAR 230 DISCLOSURE:
To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
Rich Tegge is a financial advisor located at Wealth Strategy Group 300 South Front Street Suite C Marquette, MI 49855. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (906) 228-3696 or at rtegge@wsginvest.com.
© 2015 Commonwealth Financial Network®