The Focus - Our Tax E-Newsletter |
Fall Foliage and Tax Brackets
As the days grow shorter and colder, and the fall colors start to turn to a dull shade, people start thinking about how quickly the end of the year is coming. For CPA’s, this is also the time of year that we are often asked about year-end taxes, the tax bracket and gross income phase-out thresholds. Below is a quick reference chart of some of the more common tax brackets and phase-out limitations that you may encounter.
Federal Tax Data Sheet (2015)
|
Filing Status |
Joint or Qualifying Widow(er) (MFJ) |
Single |
Head or Household (HOH) |
Married Filing Separately (MFS) |
|
Beginning of 15% Bracket |
$18,450 |
$9,225 |
$13,150 |
$9,225 |
|
Beginning of 25% Bracket |
$74,900 |
$37,450 |
$50,200 |
$37,450 |
|
Beginning of 28% Bracket |
$151,200 |
$90,750 |
$129,600 |
$75,600 |
|
Beginning of 33% Bracket |
$230,450 |
$189,300 |
$209,850 |
$115,225 |
|
Beginning of 35% Bracket |
$411.500 |
$411.500 |
$411.500 |
$205,750 |
|
Beginning of 39.6% Bracket |
$464,850 |
$413,200 |
$439,000 |
$232,425 |
|
Filing Status |
Joint or Qualifying Widow(er) (MFJ) |
Single |
Head or Household (HOH) |
Married Filing Separately (MFS) |
Additional for Elderly/Blind-Married
|
|
Standard Deductions |
$12,600 |
$6,300 |
$9,250 |
$6,300 |
$1,250 |
|
Beginning of Personal Exemption and Itemized Deduction (Phase-Out Based on AGI) |
$309,900 |
$258,250 |
$284,050 |
$154,950 |
N/A |
|
20% LTCG and Dividends Tax Rate – Taxable Income Threshold |
$464,850 |
$413,200 |
$439,000 |
$232.425 |
N/A |
|
.9% Medicare Tax – Earned Income and Wages Threshold |
$250,000 |
$200,000 |
$200,000 |
$125,000 |
N/A |
|
3.8% Net Investment Income Tax – MAGI Threshold |
$250,000 |
$200,000 |
$200,000 |
$125,000 |
N/A |
|
|
Threshold Amounts |
|
Personal/Dependent Exemption Before Phase-Out |
$4,000 |
|
Gift Tax Annual Exclusion |
$14,000 |
|
FICA/SE Tax Max Earnings |
$118,500 |
|
Auto Standard Mileage Allowances for Business |
$.575 |
|
Section 179 Deduction Limited |
$25,000 |
|
Qualifying Property Phase-Out Threshold |
$200,000 |
Employee Benefit Plan and IRA Reference Table (2015)
|
|
Threshold Amounts |
|
Defined Contribution Plan Annual Contribution Limit |
$53,000 |
|
401(k), 403(b), and SARSEPs |
|
|
Annual Deferral Limit |
$18,000 |
|
Catch-up Contribution |
$6,000 |
|
SIMPLE Plan |
|
|
Annual Deferral Limit |
$12,500 |
|
Catch-up Contribution |
$3,000 |
|
IRA |
|
|
Annual Deferral Limit |
$5,500 |
|
Catch-up Contribution |
$1,000 |
|
Health Savings Accounts (HSAs) – Contribution (Deduction) Maximum |
|
|
Self-only Coverage |
$3,350 |
|
Family Coverage |
$6,650 |
|
Catch-up Contribution |
$1,000 |
|
Traditional IRA Deduction Phase-Out (AGI) |
Beginning Phase-Out/Full Phase-Out |
|
Unmarried – Active Participant |
$61,000/71,000 |
|
MFS – any spouse participates |
$0/10,000 |
|
MFJ – nonparticipating spouse |
$183,000/193,000 |
|
MFJ – participating spouse |
$98,000/118,000 |
|
Roth IRA Contribution Eligibility (AGI) |
Beginning Phase-Out/Full Phase-Out |
|
Joint Return |
$183,000/193,000 |
|
Single, Head or Household (HOH) |
$116,000/131,000 |
|
Married Filing Separately (MFS) |
$0/10,000 |
Now is the time to complete (or start) your year-end tax planning. The tax professionals here at Dermody, Burke & Brown are ready to assist you in evaluating and planning for your current tax needs.
The information reflected in this article was current at the time of publication. This information will not be modified or updated for any subsequent tax law changes, if any.