Fall Foliage and Tax Brackets

Thomas R. Tartaglia, CPA (Oct, 2015)

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.

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