Important Tax Figures for 2015

The following table provides some important federal tax information for 2015, as compared with 2014. Some of the dollar amounts changed due to inflation. Other amounts changed due to legislation.

Social Security/ Medicare

2015

2014

Social Security Tax Wage Base $118,500 $117,000
Medicare Tax Wage Base No limit No limit
Employee portion of Social Security 6.2% 6.2%

Individual Retirement Accounts

2015

2014

Roth IRA Individual, up to 100% of earned income  $5,500 $  5,500
Traditional IRA Individual, up to 100% of earned Income  $5,500 $  5,500
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older  $1,000 $  1,000

Qualified Plan Limits

2015

2014

Defined Contribution Plan limit on additions on Sections 415(c)(1)(A) $ 53,000 $ 52,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) $210,000 $210,000
Maximum compensation used to determine contributions $265,000 $260,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) $18,000 $ 17,500
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older $  6,000 $  5,500
SIMPLE deferrals (Section 408(p)(2)(A)) $12,500 $ 12,000
SIMPLE additional “catch-up” contributions for employees age 50 and older $  3,000 $  2,500
Compensation defining highly compensated employee  (Section 414(q)(1)(B)) $120,000 $115,000
Compensation defining key employee (officer) $170,000 $170,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) $       600 $      550

Driving Deductions

2015

2014

Business mileage, per mile 57.5 cents 56 cents
Charitable mileage, per mile 14 cents 14 cents
Medical and moving, per mile 23 cents 23.5 cents

Business Equipment

2015

2014

Maximum Section 179 deduction $  25,000* $500,000
Phase out for Section 179 $200,000* $2 million

Transportation Fringe Benefit Exclusion

2015

2014

Monthly commuter highway vehicle and transit pass  $  130 $  250**
Monthly qualified parking  $  250 $  250

Standard Deduction

2015

2014

Married filing jointly  $ 12,600 $ 12,400
Single (and married filing separately)  $   6,300 $   6,200
Heads of Household  $   9,250 $   9,100

Personal Exemption

2015

2014

Amount $   4,000 $  3,950
Personal Exemption Phaseout

2015

2014

Married filing jointly and surviving spouses Begins at $309,900 Begins at $305,050
Heads of Household Begins at $284,050 Begins at $279,650
Unmarried individuals Begins at $258,250 Begins at $254,200
Married filing separately Begins at $154,950 Begins at $152,525

Domestic Employees

2015

2014

Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $  1,900 $ 1,900

Kiddie Tax

2015

2014

Net unearned income not subject to the “Kiddie Tax” $  2,100 $  2,000

Estate Tax

2015

2014

Federal estate tax exemption $5.43 million $5.34 million
Maximum estate tax rate 40% 40%

Annual Gift Exclusion

2015

2014

Amount you can give each recipient $14,000 $ 14,000

 

* The Section 179 amounts are scheduled to be much lower in 2015 than they were in 2014 unless Congress acts to extend them. The amounts have been increased in recent years by various tax laws, including the Tax Increase Prevention Act of 2014.

** The Tax Increase Prevention Act of 2014 provided a retroactive increase from the $130 limit that had been in place for 2014. If Congress does not act to extend it, the amount goes down to $130 for 2015.

 

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