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Tax Information for Small Business Owners

Individual and Corporate Tax Data

Small Business Taxes & Management–Copyright 2010-2017, TSN Group

CAUTION–This page contains data for several years. Please watch all dates carefully.

Contents

Corporate Income Tax Rates–Including rates for personal service corporations, personal holding companies, and accumulated earnings tax.

Miscellaneous Business Data–Section 179 expense limits

  • 2017–Tax Facts for Individuals
  • 2016–Tax Facts for Individuals
  • 2015–Tax Facts for Individuals
  • 2014–Tax Facts for Individuals

Corporate Income Tax Rates–2005-2017

Taxable income over ($) Not over ($) Tax rate
0
50,000
15%
50,000
75,000
25%
75,000
100,000
34%
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%

Personal Service Corporations :  Personal service corporations are subject to a flat tax of 35% regardless of their income.

Personal Holding Company : Personal holding companies are subject to an additional tax at 20% (15% in 2012, 2011 and 2010) on any undistributed personal holding company income. (Code Sec. 541)

Accumulated Earnings Tax : In addition to the regular tax, a corporation may be liable for an additional tax at 20% (15% in 2012, 2011, 2010) on accumulated taxable income in excess of $250,000 ($150,000 for personal service corporations). (Code Sec. 531)

Maximum Section 179 Expense Deduction : 

Amount–$500,000 from 2010 to 2016; 2017–$510,000 (indexed for inflation beginning in 2016).

Phaseout–$2,000,000 for 2010 to 2015; $2,010,000 for 2016; $2,030,000 for 2017. Indexed for inflation beginning in 2016.

Note. An increased Sec. 179 deduction is available to enterprise zone businesses and renewal community business in certain situations. In addition, an increased Sec. 179 deduction is available for certain Sec. 179 Disaster Assistance property. Check the rules in place at the time the property is placed in service. Finally, the maximum deduction for heavy sport utility vehicles and certain other vehicles is restricted to $25,000.

Note. Expensing of qualified real property limited to $250,000; cap to be removed beginning in 2016.

 

Tax Rate–Single Taxpayers–2017

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,325
0.00
10
0
9,325
37,950
932.50
15
9,325
37,950
91,900
5,226.25
25
37,950
91,900
191,650
18,713.75
28
91,900
191,650
416,700
46,643.75
33
191,650
416,700
418,400
120,910.25
35
416,700
418,400
.......
121,505.25
39.6
418,400

Tax Rates–Married Individuals Filing Joint and Surviving Spouses–2017

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
18,650
0.00
10
0
18,650
75,900
1,865.00
15
18,650
75,900
153,100
10,452.50
25
75,900
153,100
233,350
29,752.50
28
153,100
233,350
416,700
52,222.50
33
233,350
416,700
470,700
112,728.00
35
416,700
470,700
.......
131,628.00
39.6
470,700

Tax Rates–Married Individuals Filing Separate–2017

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,325
0.00
10
0
9,325
37,950
932.50
15
9,325
37,950
76,550
5,226.25
25
37,950
76,550
116,675
14,876.25
28
76,550
116,675
208,350
26,111.25
33
116,675
208,350
235,350
56,364.00
35
208,350
235,350
.......
65,814.00
39.6
235,350

Tax Rates–Heads Of Households–2017

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
13,350
0.00
10
0
13,350
50,800
1,335.00
15
13,350
50,800
131,200
6,952.50
25
50,800
131,200
212,500
27,052.50
28
131,200
212,500
416,700
49,816.50
33
212,500
416,700
444,550
117,202.50
35
416,700
444,550
.......
126,950.00
39.6
444,550

Tax Rates–Estates And Trusts–2017

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
2,550
0.00
15
0
2,550
6,000
382.50
25
2,550
6,000
9,150
1,245.00
28
6,000
9,150
12,500
2,127.00
33
9,150
12,500
.....
3,232.50
39.6
12,500

Tax Rates–Estates And Trusts–2017

  • For taxpayers in the 10% or 15% bracket–0%

  • For taxpayers in 25%, 28%, 33%, 35% brackets–15%

  • For taxpayers in 39.6% bracket–20%

  • Tax on unrecaptured Sec. 1250 gain–25%

  • Capital gain rate on collectibles–28%

Unearned Income Medicare Contributions Tax (Net Investment Income Tax)–2017

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

Additional Medicare Tax on Wages and Self-Employment Income–2017

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Standard Deduction–2017

Filing Status Standard Deduction ($)
Married filing joint and surviving spouses
12,700
Heads of Household
9,350
Single individuals
6,350
Married, filing separate
6,350

Dependent’s Standard Deduction–No more than the greater of $1,050 or $350 plus the individual’s earned income.

Additional standard deduction for aged or blind–$1,250 each ($1,550 if individual is unmarried and not surviving spouse)

Itemized Deduction Phaseout–2017 Start of Phaseout

Filing Status Standard Deduction ($)
Married, filing joint
313,800
Head of Household
287,650
Single
261,500
Married, filing separate
156,900

Phaseout is lesser of 3% of amount that exceeds threshold or 80% of itemized deductions.

Personal Exemption–2017 Amount–$4,050 – Phaseout

Filing Status Beginning ($) Completed ($)
Married, filing joint and surviving spouses
313,800
436,300
Head of Household
287,650
410,150
Unmarried Individuals
261,500
384,000
Married, filing separate
156,900
218,150

Savings Bond/Higher Education Expense Exclusion–2017

Modified adjusted gross income phaseout–married, joint, $117,250–$147,250; all other filing status, $78,150–$93,150

 

American Opportunity Tax Credit (Hope Credit)–2017

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits–2017

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $111,000 joint return; $55,000 all others.

Credit completely phased out at $161,000 joint returns; $65,000 all others.

Earned Income Tax Credit (EITC)–2017

Number of Qualifying Children Item One ($) Two or More ($) Three or More ($) None ($)
Earned Income Amount
10,000
14,040
14,040
6,670
Maximum Amount of Credit
3,400
5,616
6,318
510
Threshold Phaseout (single, surviving spouse or head of household)
18,340
18,340
18,340
8,340
Completed Phaseout (single, surviving spouse or head of household)
39,617
45,007
48,340
15,010
Threshold Phaseout (married, joint)
23,930
23,930
23,930
13,930
Completed Phaseout (married, joint)
45,207
50,597
53,930
20,600

Excessive Investment Income for Earned Income Tax Credit–$3,450

Alternative Minimum Tax–2017

First $187,800 ($93,900married, separate) of AMTI - 26% Over $87,800 ($93,900 married, separate) of AMTI (Alternative Minimum Taxable Income) - 28% Exemptions: ($)
Joint Filers
84,500
Married, separate
42,250
Single (and head of household)
54,300
Estates & Trusts
24,100
Child subject to Kiddie Tax
7,500 (plus child's earned income)

Exemption Phaseout:

25% of amount AMTI exceeds:

$160,900 for married, joint and surviving spouses

$120,700 single (and head of household)

$80,450 married, filing separate

Estate and Gift–2017

Unified Credit Against Estate Tax–$5,490,000

Annual Exclusion for Gifts–$14,000

Annual Exclusion for Gifts to Spouse not a Citizen–$149,000

Notice of Large Gifts Received from Foreign Persons–$15,797

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)–$1,490,000

Valuation of Qualified Real Property (special use) in Decendent’s Gross Estate (Sec. 2032A)–$1,120,000

 

Miscellaneous–2017

Child Tax Credit–$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS; refundable $3,000 Sec. 24(d)(1)(B)(i)

Cafeteria Plans (maximum salary reduction)–$2,600

Employer Health Insurance Credit (Sec. 45R)–Average annual wage phaseout–$26,200

Unearned Income of Minor Child (Kiddie Tax)–$1,050 ($10,500 for parental election)

Foreign Earned Income Exclusion–$102,100

Minor Child subject to Kiddie Tax–up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

Periodic Payments Received under Long-Term Qualified Care Insurance Contracts or Certain Life Insurance Contracts Per Diem Limitation–$340

Loan limit on Agricultural Bonds for First-Time Farmers–$524,200

Home Office Safe Harbor–$5.00 per square foot; maximum 300 sq.ft. or $1,500

Persons Against Which a Federal Tax Lien is Not Valid– Purchasers in a casual sale for less than $1,540 or a mechanic’s lienor that repair or improved certain residential property if the contract price is not more than $7,690.

Property Exempt from Levy–Property exempt from levy under Sec. 6334(a)(2) cannot exceed $9,200. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,600.

Low-cost article/insubstantial benefits for fully deductible charitable contributions–$10.70; $53.50; $107.

 

Adoption Expenses–2017

Maximum credit for child with special needs–$13,570

Maximum credit, other adoptions–$13,570

Other adoptions, gross income exclusion, qualified expenses up to $13,570

Phaseout range, modified adjusted gross income–$203,540 to $243,540

Refundable Credit for Coverage Under a Qualified Health Plan–2017

Household income(% of poverty line) Limitation amount unmarried ($) (other than surviving spouses or HOH) Limitation for all other taxpayers
Less than 200%
300
600
200% less than 300%
750
1,500
300% less than 400%
1,275
2,550

Eligible Long-Term Care Premiums–2017

Attained Age Before the Close of the Tax Year Limitation on Premiums ($)
40 or less
410
More than 40 but not
more than 50
770
More than 50 but not
more than 60
1,530
More than 60 but not more than 70
4,090
More than 70
5,110

Health Savings Accounts–2017

Maximum annual HSA contributions deductible–$3,400 for individual; $6,750 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000.

Contribution limit prorated for partial year (1/12 per month).

Deductible Amounts that define High Deductible Plan:

Eligible Long-Term Care Premiums–2017

Annual Deductible Deductibles, Co-Payments and other Amounts Not Less Than but not Premiums Not to Exceed
Self Only
1,300
6,550
Family Coverage
2,600
13,100

Social Security–2017

Taxable Thresholds–Social security payments includable in income if modified AGI exceeds base amounts.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.

50% inclusion threshold:

$25,000 no more than $34,000–single, head of household, married living apart ($0 for married, separate)$32,000 no more than $44,000–married filing joint

85% inclusion threshold:

more than $34,000–single, head of household, married living apart ($0 for married, separate)more than $44,000–married filing joint

OASDI Wage Base–$127,200

Household (domestic) employee cash wages threshold–$2,000

Quarter of coverage–$1,300

Retirement Savings Test–$16,920 (under full retirement age); $44,880 (year of full retirement age)

For a fact sheet on the COLA go to www.ssa.gov/news/press/factsheets/colafacts2017.pdf

 

Tax Facts for Individuals–2016

Tax Rate–Single Taxpayers–2016

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,275
0.00
10
0
9,275
37,650
927.50
15
9,275
37,650
91,150
5,183.75
25
37,650
91,150
190,150
18,558.75
28
91,150
190,150
413,350
46,278.75
33
190,150
413,350
415,050
119,934.75
35
413,350
415,050
.......
120,529.75
39.6
415,050

Tax Rates–Married Individuals Filing Joint and Surviving Spouses–2016

Taxable income:                     Tax:

Over ($) But not over ($) Tax ($) +% On amount over ($)
0
18,550
0.00
10
0
18,550
75,300
1,855.00
15
18,550
75,300
151,900
10,367.50
25
75,300
151,900
231,450
29,517.50
28
151,900
231,450
413,350
51,791.50
33
231,450
413,350
466,950
111,818.50
35
413,350
466,950
.......
130,578.50
39.6
466,950

Tax Rates–Married Individuals Filing Separate–2016

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,275
0.00
10
0
9,275
37,650
927.50
15
9,275
37,650
75,950
5,183.75
25
37,650
75,950
115,725
14,758.75
28
75,950
115,725
206,675
25,895.75
33
115,725
206,675
233,475
55,909.25
35
206,675
233,475
.......
65,289.25
39.6
233,475

Tax Rates–Heads Of Households–2016

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
13,250
0.00
10
0
13,250
50,400
1,325.00
15
13,250
50,400
130,150
6,897.50
25
50,400
130,150
210,800
26,835.00
28
130,150
210,800
413,350
49,417.00
33
210,800
413,350
441,000
116,258.50
35
413,350
441,000
.......
125,936.00
39.6
441,000

Tax Rates–Estates And Trusts–2016

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
2,550
0.00
15
0
2,550
5,950
382.50
25
2,550
5,950
9,050
1,232.50
28
5,950
9,050
12,400
2,100.50
33
9,050
12,400
.....
3,206.00
39.6
12,400

Long-Term Capital Gains and Qualifying Dividends–2016

For taxpayers in the 10% or 15% bracket–0%

For taxpayers in 25%, 28%, 33%, 35% brackets–15%

For taxpayers in 39.6% bracket–20%

Tax on unrecaptured Sec. 1250 gain–25%

Capital gain rate on collectibles–28%

 

Unearned Income Medicare Contributions Tax (Net Investment Income Tax)–2016

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

 

Additional Medicare Tax on Wages and Self-Employment Income–2016

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Standard Deduction–2016

Filing Status Standard Deduction ($)
Married, filing joint and surviving spouses
12,600
Head of Household
9,300
Single individuals
6,300
Married, filing separate
6,300

Dependent’s Standard Deduction–No more than the greater of $1,050 or $350 plus the individual’s earned income.

Additional standard deduction for aged or blind–$1,250 each ($1,550 if individual is unmarried and not surviving spouse)

Itemized Deduction Phaseout–2016 Start of Phaseout–

Filing Status Standard Deduction ($)
Married, filing joint
311,300
Head of Household
285,350
Single
259,400
Married, filing separate
155,650

Phaseout is lesser of 3% of amount that exceeds threshold or 80% of itemized deductions.

Personal Exemption–2016 Amount–$4,050 Phaseout–

Filing Status Beginning ($) Completed ($)
Married, filing joint and surviving spouses
311,300
433,800
Head of Household
285,350
407,850
Unmarried Individuals
259,400
381,900
Married, filing separate
155,650
216,900

Savings Bond/Higher Education Expense Exclusion–2016

Modified adjusted gross income phaseout–married, joint, $116,300–$146,300; all other filing status, $77,550–$92,550

 

American Opportunity Tax Credit (Hope Credit)–2016

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits–2016

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $112,000 joint return; $56,000 all others.

Credit completely phased out at $162,000 joint returns; $66,000 all others.

 

Interest on Education Loans–2016

Maximum interest deduction–$2,500

Modified adjusted gross income phaseout range–Married, joint, $130,000–$160,000; all other filing status, $65,000–$80,000

 

Transportation Fringe Benefit Exclusion–2016

Commuter highway vehicle and transit pass–$130

Qualified parking–$255

Earned Income Tax Credit (EITC)–2016

Number of Qualifying Children Item One ($) Two or More ($) Three or More ($) None ($)
Earned Income Amount
9,920
13,930
13,930
6,610
Maximum Amount of Credit
3,373
5,572
6,269
506
Threshold Phaseout (single, surviving spouse or head of household)
18,190
18,190
18,190
8,270
Completed Phaseout (single, surviving spouse or head of household)
39,296
44,648
47,955
14,880
Threshold Phaseout (married, joint)
23,740
23,740
23,740
13,820
Completed Phaseout (married, joint)
44,846
50,198
53,505
20,430

Excessive Investment Income for Earned Income Tax Credit–$3,400

Alternative Minimum Tax–2016

First $186,300 ($93,150 married, separate) of AMTI                        26%

Over $186,300 ($93,150 married, separate) of AMTI (Alternative Minimum Taxable Income)      28%

Exemptions:

Joint Filers                      $83,800 

Married, separate                 $41,900

Single (and head of household)    $53,900  

Estates & Trusts                  $23,900 

Child subject to Kiddie Tax $7,400 (plus child's earned income)

Exemption Phaseout:

25% of amount AMTI exceeds:

$159,700 for married, joint and surviving spouses

$119,700 single (and head of household)

$79,850 married, filing separate


Estate and Gift–2016

Unified Credit Against Estate Tax–$5,450,000

Annual Exclusion for Gifts–$14,000

Annual Exclusion for Gifts to Spouse not a Citizen–$148,000

Notice of Large Gifts Received from Foreign Persons–$15,671

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)–$1,480,000

Valuation of Qualified Real Property (special use) in Decendent’s Gross Estate (Sec. 2032A)–$1,110,000

 

IRAs, SEPs, Pension Plans, etc.–2016

IRA (traditional and Roth) maximum contribution–$5,500; age 50 and older catch-up–$1,000

IRA AGI deduction phaseout start for those covered by pension plan–$98,000 ($118,000, phaseout end)(MFJ, qualifying widow); $61,000 ($71,000) all others except MFS ($0-$10,000).

IRA AGI deduction phaseout start where only spouse covered by plan starts at $184,000 ($194,000 phaseout end).

Roth IRA phaseout start $184,000 ($194,000 end) (MFJ, qualifying widow); $117,000 ($132,000 end) all others except MFS.

SIMPLE plan, maximum elective deferral (Sec. 408(k)(2)(C)–$12,500; age 50 catch-up–$2,500.

SEP–Maximum contribution percentage–25%; maximum dollar contribution $53,000; compensation covered $600.

Defined contribution plan limits (Sec. 415(c)(1)(A)–$53,000.

Elective deferral limit (Sec. 401(k); 403(b); most 457 plans; TSP)–$18,000; age 50 catch-up–$6,000.

Elective deferral limit (Sec. 402(g)(1)–$18,000.

Deferrals under state/local/tax exempt plan (Sec. 457(e)(15)–$18,000.

Compensation limit under Secs. 401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(D(ii) is $265,000.

Control employee for fringe benefit valuation (Sec. 1.61-21(f)(5)(i) is $105,000.

Control employee for fringe benefit valuation (Sec. 1.61-21(f)(5)(iii) is $215,000.

Key employee, top heavy plan (Sec. 416(i)(1)(A)(i))–$170,000

Highly compensated employee (Sec. 414(q)(1)(B))–$120,000

Defined benefit plan maximum annual benefit (Sec. 415(b)(1)(A))–$210,000

Catch-up contributions to SIMPLE 401(k) plans (Sec. 401(k)(11))–$3,000

 

Miscellaneous–2016

Child Tax Credit–$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS; refundable $3,000 Sec. 24(d)(1)(B)(i)

Cafeteria Plans (maximum salary reduction)–$2,550

Employer Health Insurance Credit (Sec. 45R)–Average annual wage phaseout–$25,900

Unearned Income of Minor Child (Kiddie Tax)–$1,050 ($10,500 for parental election)

Foreign Earned Income Exclusion–$101,300

Minor Child subject to Kiddie Tax–up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

Periodic Payments Received under Long-Term Qualified Care Insurance Contracts or Certain Life Insurance Contracts Per Diem Limitation–$340

Loan limit on Agricultural Bonds for First-Time Farmers–$520,000

Home Office Safe Harbor–$5.00 per square foot; maximum 300 sq.ft. or $1,500

Persons Against Which a Federal Tax Lien is Not Valid– Purchasers in a casual sale for less than $1,530 or a mechanic’s lienor that repair or improved certain residential property if the contract price is not more than $7,630.

Property Exempt from Levy–Property exempt from levy under Sec. 6334(a)(2) cannot exceed $9,120. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,560.

Low-cost article for fully deductible charitable contributions–$10.60; $53; $106.

 

Adoption Expenses–2016

Maximum credit for child with special needs–$13,460

Maximum credit, other adoptions–$13,460

Other adoptions, gross income exclusion, qualified expenses up to $13,460

Phaseout range, modified adjusted gross income–$201,920 to $241,920

Refundable Credit for Coverage Under a Qualified Health Plan–2016

Household income(% of poverty line) Limitation amount unmarried ($) (other than surviving spouses or HOH) Limitation for all other taxpayers
Less than 200%
300
600
200% less than 300%
750
1,500
300% less than 400%
1,275
2,550

Eligible Long-Term Care Premiums–2016

Eligible Long-Term Care Premiums–2016 Limitation on Premiums ($)
40 or less
390
More than 40 but not
more than 50
730
More than 50 but not
more than 60
1,460
More than 60 but not more than 70
3,900
More than 70
4,870

Health Savings Accounts–2016

Maximum annual HSA contributions deductible–$3,350 for individual; $6,750 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000.

Contribution limit prorated for partial year (1/12 per month).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts Not Less Than but not Premiums Not to Exceed
Self Only
1,300
6,550
Family Coverage
2,600
13,100

Social Security–2016

Taxable Thresholds–Social security payments includable in income if modified AGI exceeds base amounts.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.

50% inclusion threshold:

$25,000 no more than $34,000–single, head of household, married living apart ($0 for married, separate)$32,000 no more than $44,000–married filing joint

85% inclusion threshold:

more than $34,000–single, head of household, married living apart ($0 for married, separate)more than $44,000–married filing joint

OASDI Wage Base–$118,500

Household (domestic) employee cash wages threshold–$2,000

Quarter of coverage–$1,260

Retirement Savings Test–$15,720 (under full retirement age); $41,880 (year of full retirement age)

For a fact sheet on the COLA go to www.socialsecurity.gov/news/press/factsheets/colafacts2016.html

 

Tax Facts for Individuals–2015

Tax Rate–Single Taxpayers–2015

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,225
0.00
10
0
9,225
37,450
922.50
15
9,225
37,450
90,750
5,156.25
25
37,450
90,750
189,300
18,481.25
28
90,750
189,300
411,500
46,075.25
33
189,300
411,500
413,200
119,401.25
35
411,500
413,200
.......
119,996.25
39.6
413,200

Tax Rates–Married Individuals Filing Joint and Surviving Spouses–2015

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
18,450
0.00
10
0
18,450
74,900
1,845.00
15
18,450
74,900
151,200
10,312.50
25
74,900
151,200
230,450
29,387.50
28
151,200
230,450
411,500
51,577.50
33
230,450
411,500
464,850
111,324.00
35
411,500
464,850
.......
129,996.50
39.6
464,850

Tax Rates–Married Individuals Filing Separate–2015

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,225
0.00
10
0
9,225
37,450
922.50
15
9,225
37,450
75,600
5,156.25
25
37,450
75,600
115,225
14,693.75
28
75,600
115,225
205,750
25,788.75
33
115,225
205,750
232,425
55,662.00
35
205,750
232,425
.......
64,989.25
39.6
232,425

Tax Rates–Heads Of Households–2015

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
13,150
0.00
10
0
13,150
50,200
1,315.00
15
13,150
50,200
129,600
6,872.50
25
50,200
129,600
209,850
26,722.50
28
129,600
209,850
411,500
49,192.50
33
209,850
411,500
439,000
115,737.00
35
411,500
439,000
.......
125,362.00
39.6
439,000

Tax Rates–Estates And Trusts–2015

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
2,500
0.00
15
0
2,500
5,900
375.00
25
2,500
5,900
9,050
1,225.00
28
5,900
9,050
12,300
2,107.00
33
9,050
12,300
.....
3,179.50
39.6
12,300

Long-Term Capital Gains and Qualifying Dividends–2015

For taxpayers in the 10% or 15% bracket–0%

For taxpayers in 25%, 28%, 33%, 35% brackets–15%

For taxpayers in 39.6% bracket–20%

Tax on unrecaptured Sec. 1250 gain–25%

Capital gain rate on collectibles–28%

 

Unearned Income Medicare Contributions Tax (Net Investment Income Tax)–2015

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

 

Additional Medicare Tax on Wages and Self-Employment Income–2015

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Standard Deduction–2015

Filing Status Standard Deduction ($)
Married, filing joint
12,600
Head of Household
9250
Single individuals
6,300
Married, filing separate
6,300

Dependent’s Standard Deduction–No more than the greater of $1,050 or $350 plus the individual’s earned income.

Additional standard deduction for aged or blind–$1,250 each ($1,550 if individual is unmarried and not surviving spouse)

Itemized Deduction Phaseout–2015 Start of Phaseout–

Filing Status Standard Deduction ($)
Married, filing joint
309,900
Head of Household
284,050
Single
258,250
Married, filing separate
154,950

Phaseout is lesser of 3% of amount that exceeds threshold or 80% of itemized deductions.

Personal Exemption–2015 Amount–$4,000 Phaseout–

Filing Status Beginning ($) Completed ($)
Married, filing joint and surviving spouses
309,900
432,400
Head of Household
284,050
406,550
Unmarried Individuals
258,250
380,750
Married, filing separate
154,950
216,200

Savings Bond/Higher Education Expense Exclusion–2015

Modified adjusted gross income phaseout–married, joint, $115,750–$145,750; all other filing status, $77,200–$92,200

 

American Opportunity Tax Credit (Hope Credit)–2015

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits–2015

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $110,000 joint return; $55,000 all others.

Credit completely phased out at $160,000 joint returns; $65,000 all others.

 

Interest on Education Loans–2015

Maximum interest deduction–$2,500

Modified adjusted gross income phaseout range–Married, joint, $130,000–$160,000; all other filing status, $65,000–$80,000

 

Qualified Transportation Fringe Benefit Exclusion–2015

Commuter highway vehicle and transit pass–$130

Qualified parking–$250

Qualified bicycle allowance–$20 per month

Earned Income Tax Credit (EITC)–2015

Number of Qualifying Children Item One ($) Two or More ($) Three or More ($) None ($)
Earned Income Amount
9,880
13,870
13,870
6,580
Maximum Amount of Credit
3,359
5,548
6,242
503
Threshold Phaseout (single, surviving spouse or head of household)
18,110
18,110
18,110
8,240
Completed Phaseout (single, surviving spouse or head of household)
39,131
44,454
47,747
14,820
Threshold Phaseout (married, joint)
23,630
23,630
23,630
13,750
Completed Phaseout (married, joint)
44,651
49,974
53,267
20,330

Excessive Investment Income for Earned Income Tax Credit–$3,400

Alternative Minimum Tax–2015
First $185,400 ($92,700 married, separate) of AMTI 26%

Over $185,400 ($92,700) of AMTI (Alternative Minimum Taxable Income) 28%

Exemptions:

Joint Filers $83,400

Married, separate $41,700

Single (and head of household) $53,600

Estates & Trusts $23,800

Child subject to Kiddie Tax $7,400 (plus child’s earned income)

Exemption Phaseout:

25% of amount AMTI exceeds:

$158,900 for married, joint and surviving spouses

$119,200 single (and head of household)

$79,450 married, filing separate

Estate and Gift–2015
Unified Credit Against Estate Tax–$5,430,000

Annual Exclusion for Gifts–$14,000

Annual Exclusion for Gifts to Spouse not a Citizen–$147,000

Notice of Large Gifts Received from Foreign Persons–$15,601

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)–$1,470,000

Valuation of Qualified Real Property (special use) in Decendent’s Gross Estate (Sec. 2032A)–$1,100,000

IRAs, SEPs, Pension Plans, etc.–2015
IRA (traditional and Roth) maximum contribution–$5,500; age 50 and older catch-up–$1,000

IRA AGI deduction phaseout start for those covered by pension plan–$98,000 (MFJ, qualifying widow); $61,000 all others except MFS.

IRA AGI deduction phaseout start where only spouse covered by plan starts at $183,000.

Roth IRA phaseout $183,000 start (MFJ, qualifying widow); $116,000 all others except MFS.

SIMPLE plan, maximum elective deferral (Sec. 408(k)(2)(C)–$12,500; age 50 catch-up–$2,500.

SEP–Maximum contribution percentage–25%; maximum dollar amount $53,000.

Defined contribution plan limits (Sec. 415(c)(1)(A)–$53,000.

Elective deferral limit (Sec. 401(k); 403(b) plans)–$18,000; age 50 catch-up–$6,000.

Elective deferral limit (Sec. 402(g)(1)–$18,000.

Deferrals under state/local/tax exempt plan (Sec. 457(e)(15)–$18,000.

Compensation limit under Secs. 401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(D(ii) is $265,000.

Control employee for fringe benefit valuation (Sec. 1.61-21(f)(5)(i) is $105,000.

Control employee for fringe benefit valuation (Sec. 1.61-21(f)(5)(iii) is $215,000.

Key employee, top heavy plan (Sec. 416(i)(1)(A)(i))–$170,000

Highly compensated employee (Sec. 414(q)(1)(B))–$120,000

Defined benefit plan maximum accrued amount (Sec. 415(b)(1)(A))–$210,000

Compensation amount for simplified employee pensions (SEPs)(Sec. 408(k)2)) is $600.

Catch-up contributions to SIMPLE 401(k) plans (Sec. 401(k)(11))–$3,000

Miscellaneous–2015
Child Tax Credit–$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS; refundable $3,000 Sec. 24(d)(1)(B)(i)

Cafeteria Plans (maximum salary reduction)–$2,550

Employer Health Insurance Credit (Sec. 45R)–Average annual wage phaseout–$25,400

Unearned Income of Minor Child (Kiddie Tax)–$1,050 ($10,500 for parental election)

Foreign Earned Income Exclusion–$100,800

Minor Child subject to Kiddie Tax–up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

Periodic Payments Received under Long-Term Qualified Care Insurance Contracts or Certain Life Insurance Contracts Per Diem Limitation–$330

Employee Health Insurance Expense of Small Employers (Sec. 45R(d)(3)(B))–$25,800

Home Office Safe Harbor–$5.00 per square foot; maximum 300 sq.ft. or $1,500

Persons Against Which a Federal Tax Lien is Not Valid– Purchasers in a casual sale for less than $1,520 or a mechanic’s lienor that repair or improved certain residential property if the contract price is not more than $7,590.

Property Exempt from Levy–Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,970. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,540.

Social Security–2015
Taxable Thresholds–Social security payments includable in income if modified AGI exceeds base amounts.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.

50% inclusion threshold:

$25,000 no more than $34,000–single, head of household, married living apart ($0 for married, separate)$32,000 no more than $44,000–married filing joint

85% inclusion threshold:

more than $34,000–single, head of household, married living apart ($0 for married, separate)more than $44,000–married filing joint

OASDI Wage Base–$118,500

Household (domestic) employee cash wages threshold–$1,900

Quarter of coverage–$1,220

Retirement Savings Test–$15,720 (under full retirement age); $41,880 (year of full retirement age)

For a fact sheet on the COLA go to www.socialsecurity.gov/news/press/factsheets/colafacts2015.html

Health Savings Accounts–2015
Maximum annual HSA contributions deductible–$3,350 for individual; $6,650 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000.

Contribution limit prorated for partial year (1/12 per month).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts Not Less Than but not Premiums Not to Exceed
Self Only
1,300
6,450
Family Coverage
2,600
12,900

Adoption Expenses–2015

Maximum credit for child with special needs–$13,400

Maximum credit, other adoptions–$13,400

Other adoptions, gross income exclusion, qualified expenses up to $13,400

Phaseout range, modified adjusted gross income–$201,010 to $241,010

Refundable Credit for Coverage Under a Qualified Health Plan–2015

Household income(% of poverty line) Limitation amount unmarried ($) (other than surviving spouses or HOH) Limitation for all other taxpayers
Less than 200%
300
600
200% less than 300%
750
1,500
300% less than 400%
1,250
2,500

Eligible Long-Term Care Premiums–2015

Attained Age Before the Close of the Tax Year Limitation on Premiums ($)
40 or less
380
More than 40 but not more than 50
710
More than 50 but not more than 60
1,430
More than 60 but not more than 70
3,800
More than 70
4,750

Standard Meal and Snack Rates for Day Care Providers–2015

48 Contiguous
Location Breakfast ($) Lunch ($) Dinner ($) Snack ($)
States
1.31
2.47
2.47
0.73
Alaska
2.09
4.00
4.00
1.19
Hawaii
1.53
2.88
2.88
0.86

Tax Rate–Single Taxpayers–2014

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,075
0.00
10
0
9,075
36,900
907.50
15
9,075
36,900
89,350
5,081.25
25
36,900
89,350
186,350
18,193.75
28
89,350
186,350
405,100
45,353.75
33
186,350
405,100
406,750
117,541.25
35
405,100
406,750
.......
118,118.75
39.6
406,750

Tax Rate–Single Taxpayers–2014

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,075
0.00
10
0
9,075
36,900
907.50
15
9,075
36,900
89,350
5,081.25
25
36,900
89,350
186,350
18,193.75
28
89,350
186,350
405,100
45,353.75
33
186,350
405,100
406,750
117,541.25
35
405,100
406,750
.......
118,118.75
39.6
406,750

Tax Rates–Married Individuals Filing Joint and Surviving Spouses–2014

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
18,150
0.00
10
0
18,150
73,800
1,815.00
15
18,150
73,800
148,850
10,162.50
25
73,800
148,850
226,850
28,925.00
28
148,850
226,850
405,100
50,765.00
33
226,850
405,100
457,600
109,587.50
35
405,100
457,600
.......
127,962.50
39.6
457,600

Tax Rates–Married Individuals Filing Separate–2014

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
9,075
0.00
10
0
9,075
36,900
907.50
15
9,075
36,900
74,425
5,081.25
25
36,900
74,425
113,425
14,462.50
28
74,425
113,425
202,550
25,382.50
33
113,425
202,550
228,800
54,793.75
35
202,550
228,800
.......
63,981.25
39.6
228,800

Tax Rates–Heads Of Households–2014

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
12,950
0.00
10
0
12,950
49,400
1,295.00
15
12,950
49,400
127,550
6,762.50
25
49,400
127,550
206,600
26,300.00
28
127,550
206,600
405,100
48,434.00
33
206,600
405,100
432,200
113,939.00
35
405,100
432,200
.......
123,424.00
39.6
432,200

Tax Rates–Estates And Trusts–2014

Taxable income:                     Tax:
Over ($) But not over ($) Tax ($) +% On amount over ($)
0
2,500
0.00
15
0
2,500
5,800
375.00
25
2,500
5,800
8,900
1,200.00
28
5,800
8,900
12,150
2,068.00
33
8,900
12,150
.....
3,140.50
39.6
12,150

Long-Term Capital Gains and Qualifying Dividends–2014

For taxpayers in the 10% or 15% bracket–0%

For taxpayers in 25%, 28%, 33%, 35% brackets–15%

For taxpayers in 39.6% bracket–20%

Tax on unrecaptured Sec. 1250 gain–25%

Capital gain rate on collectibles–28%

 

Unearned Income Medicare Contributions Tax (Net Investment Income Tax)–2014

Lesser of 3.8% of net investment income from interest, dividends, annuities, royalties, rents, and gains not generated in active trade or business or modified adjusted gross income in excess of $200,000 ($250,000 for married filing joint; $125,000 for married filing separate).

 

Additional Medicare Tax on Wages and Self-Employment Income–2014

Additional tax of 0.9% on wages and self-employment income in excess of $200,000 ($250,000 for married joint; $125,000 married separate).

Standard Deduction–2014

Filing Status Standard Deduction ($)
Married, filing joint
12,400
Head of Household
9,100
Single individuals
6,200
Married, filing separate
6,200

Dependent’s Standard Deduction–No more than the greater of $1,000 or $350 plus the individual’s earned income.

Additional standard deduction for aged or blind–$1,200 each ($1,550 if individual is unmarried and not surviving spouse)

Itemized Deduction Phaseout–2014 Start of Phaseout–

Filing Status Standard Deduction ($)
Married, filing joint
305,050
Head of Household
279,650
Single
254,200
Married, filing separate
152,525

Phaseout is lesser of 3% of amount that exceeds threshold or 80% of itemized deductions.

Personal Exemption–2014 Amount–$3,950 Phaseout–

Filing Status Beginning ($) Completed ($)
Married, filing joint and surviving spouses
305,050
427,550
Head of Household
279,650
402,150
Unmarried Individuals
254,200
376,700
Married, filing separate
152,525
213,775

Savings Bond/Higher Education Expense Exclusion–2014

Modified adjusted gross income phaseout–married, joint, $113,950–$143,950; all other filing status, $76,000–$91,000

 

American Opportunity Tax Credit (Hope Credit)–2014

100% of first $2,000 of education expenses; 25% of expenses between $2,000 and $4,000 (maximum credit $2,500)

Phaseout begins at modified adjusted gross income of $160,000 joint return; $80,000 all others.

Credit completely phased out at $180,000 ($90,000).

 

Lifetime Learning Credits–2014

20% of first $10,000 of qualified education expenses.

Phaseout begins at modified adjusted gross income of $108,000 joint return; $54,000 all others.

Credit completely phased out at $128,000 joint returns; $64,000 all others.

 

Tuition and Fees Deduction–2014

$4,000 limit of qualifed expenses.

AGI not in excess of $130,000 (married joint) or $65,000 (all others) maximum deduction is $4,000.

AGI not in excess of $160,000 (married joint) or $80,000 (all others) maximum deduction is $2,000.

No deduction if AGI in excess of $160,000 (married joint) or $80,000 (all others)

 

Interest on Education Loans–2014

Maximum interest deduction–$2,500

Modified adjusted gross income phaseout range–Married, joint, $130,000–$160,000; all other filing status, $65,000–$80,000

 

Qualified Transportation Fringe Benefit Exclusion–2014

Commuter highway vehicle and transit pass–$250

Qualified parking–$250

Earned Income Tax Credit (EITC)–2014

Number of Qualifying Children Item One ($) Two or More ($) Three or More ($) None ($)
Earned Income Amount
9,720
13,650
13,650
6,480
Maximum Amount of Credit
3,305
5,460
6,143
496
Threshold Phaseout (single, surviving spouse or head of household)
17,830
17,830
17,830
8,110
Completed Phaseout (single, surviving spouse or head of household)
38,511
43,756
46,997
14,590
Threshold Phaseout (married, joint)
23,260
23,260
23,260
13,540
Completed Phaseout (married, joint)
43,941
49,186
52,427
20,020

Excessive Investment Income for Earned Income Tax Credit–$3,350

Alternative Minimum Tax–2014

First $182,500 ($91,250 married, separate) of AMTI                        26%

Over $182,500 ($91,250) of AMTI (Alternative Minimum Taxable Income)      28%

Exemptions:

Joint Filers                      $82,100 

Married, separate                 $41,050

Single (and head of household)    $52,800  

Estates & Trusts                  $23,500 

Child subject to Kiddie Tax $7,250 (plus child's earned income)

Exemption Phaseout:

25% of amount AMTI exceeds:

$156,500 for married, joint and surviving spouses

$117,300 single (and head of household)

$78,250 married, filing separate


Estate and Gift–2014

Unified Credit Against Estate Tax–$5,340,000

Annual Exclusion for Gifts–$14,000

Annual Exclusion for Gifts to Spouse not a Citizen–$145,000

Notice of Large Gifts Received from Foreign Persons–$15,358

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)–$1,450,000

Valuation of Qualified Real Property (special use) in Decendent’s Gross Estate (Sec. 2032A)–$1,090,000

 

IRAs, SEPs, Pension Plans, etc.–2014

IRA (traditional and Roth) maximum contribution–$5,500; age 50 and older catch-up–$1,000

IRA AGI deduction phaseout start for those covered by pension plan–$96,000 (MFJ, qualifying widow); $60,000 all others except MFS.

IRA AGI deduction phaseout start where only spouse covered by plan starts at $181,000.

Roth IRA phaseout $181,000 start (MFJ, qualifying widow); $114,000 all others except MFS.

SIMPLE plan, maximum elective deferral–$12,000; age 50 catch-up–$2,500.

SEP–Maximum contribution percentage–25%; maximum dollar amount $52,000.

Defined contribution plan limits (Sec. 415(c)(1)(A)–$52,000.

Elective deferral limit (Sec. 401(k); 403(b) plans)–$17,500; age 50 catch-up–$5,500.

Elective deferral limit (Sec. 402(g)(1)–$17,500.

Deferrals under state/local/tax exempt plan (Sec. 457(e)(15)–$17,500.

Compensation limit under Secs. 401(a)(17), 404(l), 408(k)(3)(C), 408(k)(6)(D(ii) is $260,000.

Control employee for fringe benefit valuation (Sec. 1.61-21(f)(5)(i) is $105,000.

Key employee–$170,000

Defined benefit plan maximum accrued amount–$210,000

 

Miscellaneous–2014

Child Tax Credit–$1,000; phaseout MAGI $110,000 joint, $75,000 single, $55,000 MFS; refundable $3,000 Sec. 24(d)(1)(B)(i)

Cafeteria Plans (maximum salary reduction)–$2,500

Employer Health Insurance Credit (Sec. 45R)–Average annual wage phaseout–$25,400

Unearned Income of Minor Child (Kiddie Tax)–$1,000 ($10,000 for parental election)

Foreign Earned Income Exclusion–$99,200

Minor Child subject to Kiddie Tax–up to age 18 or full-time student over 18 with earned income no more than 1/2 support under age 24.

Periodic Payments Received under Long-Term Qualified Care Insurance Contracts or Certain Life Insurance Contracts Per Diem Limitation–$330

Loan limit on Agricultural Bonds for First-Time Farmers–$509,600

Home Office Safe Harbor–$5.00 per square foot; maximum 300 sq.ft. or $1,500.

Persons Against Which a Federal Tax Lien is Not Valid– Purchasers in a casual sale for less than $1,490 or a mechanic’s lienor that repair or improved certain residential property if the contract price is not more than $7,470.

Property Exempt from Levy–Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,970. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,400.

 

Social Security–2014

Taxable Thresholds–Social security payments includable in income if modified AGI exceeds base amounts.
Modified AGI includes certain excluded income (e.g., tax exempt interest) and 1/2 of social security payments.

50% inclusion threshold:

$25,000 no more than $34,000–single, head of household, married living apart ($0 for married, separate)$32,000 no more than $44,000–married filing joint

85% inclusion threshold:

more than $34,000–single, head of household, married living apart ($0 for married, separate)more than $44,000–married filing joint

OASDI Wage Base–$117,000

Household (domestic) employee cash wages threshold–$1,900

Quarter of coverage–$1,200

Retirement Savings Test–$15,480 (under full retirement age); $41,400 (year of full retirement age)

 

Health Savings Accounts–2014

Maximum annual HSA contributions deductible–$3,300 for individual; $6,550 for family coverage

Catch-up contributions for individuals 55 or older (but less than 65) is $1,000.

Contribution limit prorated for partial year (1/12 per month).

Deductible Amounts that define High Deductible Plan:

Annual Deductible Deductibles, Co-Payments and other Amounts Not Less Than but not Premiums Not to Exceed
Self Only
1,250
6,350
Family Coverage
2,500
12,700

Adoption Expenses–2014

Maximum credit for child with special needs–$13,190

Maximum credit, other adoptions–$13,190

Other adoptions, gross income exclusion, qualified expenses up to $13,190

Phaseout range, modified adjusted gross income–$197,880 to $237,880

Eligible Long-Term Care Premiums–2014

Attained Age Before the Close of the Tax Year Limitation on Premiums ($)
40 or less
370
More than 40 but not more than 50
700
More than 50 but not more than 60
1,400
More than 60 but not more than 70
3,720
More than 70
4,660

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