Small Business Taxes & Management

Corporate and Individual Tax Data

Small Business Taxes & Management--Copyright 2010-2014, A/N Group, Inc.

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

2015--Tax Facts for Individuals

2014--Tax Facts for Individuals

2013--Tax Facts for Individuals

2012--Tax Facts for Individuals

 

Corporate Income Tax Rates--2005-2014

       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)

 

Miscellaneous Business Data

Maximum Section 179 Expense Deduction

            2013         2012        2011          2010          2009          2008                 
         $500,000      $500,000    $500,000     $500,000      $250,000      $250,000       

Phaseout--$2,000,000 for 2013; $2,000,000 for 2012; $2,000,000 for 2011; $2,000,000 for 2010; $800,000 for 2009; $800,000 for 2008.

Note. The Sec. 179 deduction reverts by law to a maximum of $25,000 for taxable years beginning after 2013. (That's calendar year 2014 and subsequent years for most taxpayers.) The phaseout drops to $200,000. It's expected that the deduction and phaseout will be increased substantially with any tax law changes or an extender package. To date (October 24, 2014) the extender package has not been passed.

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.

 

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 and 
surviving spouses                       $12,600

Heads of Household                        9,250
   
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--

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

Heads 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

 

Earned Income Tax Credit (EITC)--2014

                                                   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--2014

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--$5,500.

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

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        Limitation amount unmarried          Limitation for all
(% of poverty line)  (other than surviving spouses or HOH)      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

 

Tax Facts for Individuals--2014

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 and 
surviving spouses                       $12,400

Heads 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--

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

Heads 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--$130

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

 

Tax Facts for Individuals--2013

Tax Rate--Single Taxpayers--2013

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,925        $    0.00   10       $      0
   8,925       36,250           892.50   15          8,925
  36,250       87,850         4,991.25   25         36,250
  87,850      183,250        17,891.25   28         87,850
 183,250      398,350        44,603.25   33        183,250
 398,350      400,000       115,586.25   35        398,350
 400,000      .......       116,163.75  39.6       400,000
 

Tax Rates--Married Individuals Filing Joint and Surviving Spouses--2013

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 17,850        $     0.00  10       $      0
  17,850       72,500          1,785.00  15         17,850
  72,500      146,400          9,982.50  25         72,500
 146,400      223,050         28,457.50  28        146,400
 223,050      398,350         49,919.50  33        223,050
 398,350      450,000        107,768.50  35        398,350
 450,000      .......        125,846.00 39.6       450,000 
 

Tax Rates--Married Individuals Filing Separate--2013

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,925        $    0.00   10       $      0
   8,925       36,250           892.50   15          8,925
  36,250       73,200         4,991.25   25         36,250
  73,200      111,525        14,228.75   28         73,200
 111,525      199,175        24,959.75   33        111,525
 199,175      225,000        53,884.25   35        199,175
 225,000      .......        62,923.00  39.6       225,000


Tax Rates--Heads Of Households--2013

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 12,750        $    0.00   10       $      0
  12,750       48,600         1,275.00   15         12,750
  48,600      125,450         6,652.50   25         48,600
 125,450      203,150        25,865.00   28        125,450
 203,150      398,350        47,621.00   33        203,150
 398,350      425,000       112,037.00   35        398,350
 425,000      .......       121,364.50  39.6       425,000


Tax Rates--Estates And Trusts--2013

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,450             0.00   15         $    0
   2,450        5,700        $  367.50   25          2,450
   5,700        8,750         1,180.00   28          5,700
   8,750       11,950         2,034.00   33          8,750
  11,950        .....         3,090.00  39.6        11,950

Long-Term Capital Gains and Qualifying Dividends--2013

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)--2013

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--2013

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--2013

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $12,200

Heads of Household                        8,950
   
Single individuals                        6,100

Married, filing separate                  6,100

Dependent's Standard Deduction--No more than the greater of $1,000 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,200 each ($1,500 if individual is unmarried and not surviving spouse)

 

Itemized Deduction Phaseout--2013

Start of Phaseout--

Married, filing joint           $300,000

Head of Household               $275,000

Single                          $250,000

Married, filing separate        $150,000
Phaseout is lesser of 3% of amount that exceeds threshold or 80% of itemized deductions.

 

Personal Exemption--2013

Amount--$3,900

Phaseout--

Filing Status                  Beginning          Completed

Married, filing joint and
surviving spouses               $300,000           $422,500

Heads of Household              $275,000           $397,500

Unmarried Individuals           $250,000           $372,500

Married, filing separate        $150,000           $211,250

 

Savings Bond/Higher Education Expense Exclusion--2013

Modified adjusted gross income phaseout--married, joint, $112,050--$142,050; all other filing status, $74,700--$89,700

 

American Opportunity Tax Credit (Hope Credit)--2013

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--2013

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

Phaseout begins at modified adjusted gross income of $107,000 joint return; $53,000 all others.

Credit completely phased out at $127,000 joint returns; $63,000 all others.

 

Tuition and Fees Deduction--2013

$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--2013

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $125,000--$155,000; all other filing status, $60,000--$75,000

 

Qualified Transportation Fringe Benefit Exclusion--2013

Commuter highway vehicle and transit pass--$240

Qualified parking--$240

Qualified bicycle allowance--$20 per month

 

Earned Income Tax Credit (EITC)--2013

                                                   Number of Qualifying Children
Item                                         One    Two or More    Three or More    None

Earned Income Amount                       $ 9,560    $13,430        $13,430     $ 6,370
Maximum Amount of Credit                     3,250      5,372          6,044         487
Threshold Phaseout (single, surviving
  spouse or head of household)              17,530     17,530         17,530       7,970
Completed Phaseout (single, surviving 
  spouse or head of household)              37,870     43,038         46,227      14,340
Threshold Phaseout (married, joint)         22,870     22,870         22,870      13,310
Completed Phaseout (married, joint)         43,210     48,378         51,567      19,680
Excessive Investment Income for Earned Income Tax Credit--$3,300

 

Alternative Minimum Tax--2013


First $179,500 ($89,750 married, separate) of AMTI              26%

Over $179,500 of AMTI (Alternative Minimum Taxable Income)      28%

Exemptions:

Joint Filers                      $80,800 

Married, separate                 $40,400

Single (and head of household)    $51,900  

Estates & Trusts                  $23,100 

Child subject to Kiddie Tax $7,150 (plus child's earned income)


Exemption Phaseout:

25% of amount AMTI exceeds:

$153,900 for married, joint and surviving spouses

$115,400 single (and head of household)

$76,950 married, filing separate


Miscellaneous--2013

Unified Credit Against Estate Tax--$5,250,000

Annual Exclusion for Gifts--$14,000

Annual Exclusion for Gifts to Spouse not a Citizen--$143,000

Notice of Large Gifts Received from Foreign Persons--$15,102

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,430,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,070,000

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

Foreign Earned Income Exclusion--$97,600

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--$320

Loan limit on Agricultural Bonds for First-Time Farmers--$501,100

 

Social Security--2013

OASDI Wage Base--$113,700

Quarter of coverage--$1,160

Retirement Savings Test--$15,120 (under full retirement age); $40,080 (year of full retirement age)

For a fact sheet on the COLA go to www.ssa.gov/pressoffice/factsheets/colafacts2013.htm

 

Health Savings Accounts--2013

Maximum annual HSA contributions deductible--$3,250 for individual; $6,450 for family coverage

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

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                         $ 6,250

Family Coverage       2,500                          12,500

 

Adoption Expenses--2013

Maximum credit for child with special needs--$12,970

Maximum credit, other adoptions--$12,970

Other adoptions, gross income exclusion, qualified expenses up to $12,970

Phaseout range, modified adjusted gross income--$194,580 to $234,580

 

Eligible Long-Term Care Premiums--2013


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  360
     More than 40 but not more than 50                    680
     More than 50 but not more than 60                  1,360
     More than 60 but not more than 70                  3,640
     More than 70                                       4,550

Persons Against Which a Federal Tax Lien is Not Valid--2013

Purchasers in a casual sale for less than $1,470 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,350.

 

Property Exempt from Levy--2013

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.

 

Standard Meal and Snack Rates for Day Care Providers--2013

   Location        Breakfast    Lunch    Dinner    Snack

48 Contiguous
   States            $1.27      $2.38    $2.38     $0.71
   Alaska             2.03       3.86     3.86      1.15
   Hawaii             1.48       2.79     2.79      0.83

 

Tax Facts for Individuals--2012

Tax Rate--Single Taxpayers--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,700        $    0.00   10       $      0
   8,700       35,350           870.00   15          8,700
  35,350       85,650         4,867.50   25         35,350
  85,650      178,650        17,442.50   28         85,650
 178,650      388,350        43,482.50   33        178,650
 388,350      .......       112,683.50   35        388,350
  

Tax Rates--Married Individuals Filing Joint and Surviving Spouses--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 17,400        $     0.00  10       $      0
  17,400       70,700          1,740.00  15         17,400
  70,700      142,700          9,735.00  25         70,700
 142,700      217,450         27,735.00  28        142,700
 217,450      388,350         48,665.00  33        217,450
 388,350      .......        105,062.00  35        388,350
 

Tax Rates--Married Individuals Filing Separate--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $  8,700        $    0.00   10       $      0
   8,700       35,350           870.00   15          8,700
  35,350       71,350         4,867.50   25         35,350
  71,350      108,725        13,867.50   28         71,350
 108,725      194,175        24,332.50   33        108,725
 194,175      .......        52,531.00   35        194,175


Tax Rates--Heads Of Households--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

$      0     $ 12,400        $    0.00   10       $      0
  12,400       47,350         1,240.00   15         12,400
  47,350      122,300         6,482.50   25         47,350
 122,300      198,050        25,220.00   28        122,300
 198,050      388,350        46,430.00   33        198,050
 388,350      .......       109,229.00   35        388,350



Tax Rates--Estates And Trusts--2012

      Taxable income:                   Tax:
  Over     But not over         Tax       +%   On amount over            

  $    0       $2,400             0.00   15         $    0
   2,400        5,600        $  360.00   25          2,400
   5,600        8,500         1,160.00   28          5,600
   8,500       11,650         1,972.00   33          8,500
  11,650        .....         3,011.50   35         11,650

Long-Term Capital Gains and Qualifying Dividends--2012

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

For taxpayers in higher brackets--15%

Tax on unrecaptured Sec. 1250 gain--25%

Capital gain rate on collectibles--28%

 

Standard Deduction--2012

Filing Status                       Standard Deduction

Married filing joint and 
surviving spouses                       $11,900

Heads of Household                        8,700
   
Single individuals                        5,950

Married, filing separate                  5,950

Dependent's Standard Deduction--No more than the greater of $950 or $300 plus the individual's earned income.

Additional standard deduction for aged and blind--$1,150 each ($1,450 if individual is unmarried and not surviving spouse)

 

Personal Exemption--2012

Amount--$3,800

 

Savings Bond/Higher Education Expense Exclusion--2012

Modified adjusted gross income phaseout--married, joint, $109,250--$139,250; all other filing status, $72,850--$87,850

 

American Opportunity Tax Credit (Hope Credit)--2012

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--2012

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

Phaseout begins at modified adjusted gross income of $104,000 joint return; $52,000 all others.

Credit completely phased out at $124,000 joint returns; $62,000 all others.

 

Interest on Education Loans--2012

Maximum interest deduction--$2,500

Modified adjusted gross income phaseout range--Married, joint, $125,000--$155,000; all other filing status, $60,000--$75,000

 

Qualified Transportation Fringe Benefit Exclusion--2012

Commuter highway vehicle and transit pass--$125

Qualified parking--$240

Qualified bicycle allowance--$20 per month

 

Earned Income Tax Credit (EITC)--2012

                                                   Number of Qualifying Children
Item                                         One    Two or More    Three or More    None

Earned Income Amount                       $ 9,320    $13,090        $13,090     $ 6,210
Maximum Amount of Credit                     3,169      5,236          5,891         475
Threshold Phaseout (single, surviving
  spouse or head of household)              17,090     17,090         17,090       7,770
Completed Phaseout (single, surviving 
  spouse or head of household)              36,920     41,952         45,060      13,980
Threshold Phaseout (married, joint)         22,300     22,300         22,300      12,980
Completed Phaseout (married, joint)         42,130     47,162         50,270      19,190
Excessive Investment Income for Earned Income Tax Credit--$3,200

 

Miscellaneous--2012

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)

Unified Credit Against Estate Tax--$5,120,000

Annual Exclusion for Gifts--$13,000

Annual Exclusion for Gifts to Spouse not a Citizen--$139,000

Notice of Large Gifts Received from Foreign Persons--$14,723

Interest on Certain Portion of Estate Tax Payable in Installments (Sec. 6166; 2% portion)--$1,390,000

Valuation of Qualified Real Property in Decendent's Gross Estate (Sec. 2032A)--$1,040,000

Unearned Income of Minor Child (Kiddie Tax)--$950 ($9,500 for parental election)

Foreign Earned Income Exclusion--$95,100

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--$310

Loan limit on Agricultural Bonds for First-Time Farmers--$488,600

 

Social Security--2012

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--$110,100

Household (domestic) employee cash wages threshold--$1,800

Quarter of coverage--$1,130

Retirement Savings Test--$14,640 (under full retirement age); $38,880 (year of full retirement age)

For a fact sheet on the COLA go to www.ssa.gov/pressoffice/factsheets/colafacts2012.htm

 

Health Savings Accounts--2012

Maximum annual HSA contributions deductible--$3,100 for individual; $6,250 for family coverage

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

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            $1,200                         $ 6,050

Family Coverage       2,400                          12,100

 

Adoption Expenses--2012

Maximum credit for child with special needs--$12,650

Maximum credit, other adoptions--$12,650

Other adoptions, gross income exclusion, qualified expenses up to $12,650

Phaseout range, modified adjusted gross income--$189,710 to $229,710

 

Eligible Long-Term Care Premiums--2012


Attained Age Before the Close of the Tax Year   Limitation on Premiums

     40 or less                                        $  350
     More than 40 but not more than 50                    660
     More than 50 but not more than 60                  1,310
     More than 60 but not more than 70                  3,500
     More than 70                                       4,370

Persons Against Which a Federal Tax Lien is Not Valid--2012

Purchasers in a casual sale for less than $1,430 or a mechanic's lienor that repair or improved certain residential property if the contract price is not more than $7,160.

 

Property Exempt from Levy--2012

Property exempt from levy under Sec. 6334(a)(2) cannot exceed $8,570. Property exempt from levy under Sec. 6334(a)(3) (books and tools for trade or business) cannot exceed $4,290.

 


Copyright 2010-2014 by A/N Group, Inc. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. The information is not necessarily a complete summary of all materials on the subject.--ISSN 1089-1536


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Last update 10/24/14