2015 Tax Update

2015 Tax Update

You can contribute more to retirement plans in 2015. If you participate in a 401(k) or 403(b) plan, most 457 plans or the Thrift Savings Plan, you can contribute up to $18,000 in 2015, up from $17,500 in 2014 and 2013.

If you are age 50 or older, you can contribute an additional $6,000 as well, up from $5,500 last year.

For IRAs, the maximum contribution remains $5,500 and the “catch-up” provision for the 50-and-over crowd remains $1,000.

Tax exemptions and deductions — and the income limits for all tax brackets — also are higher for 2015.

The figures in the 2014 columns apply to the tax return due April 15, 2015. The figures in the 2015 column affect calendar year 2015, and that return is to be filed in 2016. We provide this data now for your planning purposes throughout this year.

Retirement Plans 2015 2014
Traditional, Roth IRA $5,500 $5,500
Simple IRA $12,500 $12,000
401(k), 403(b), TSP plans $18,000 $17,500
SEP IRA & Individual 401(k) $53,000 $52,000
Catch-Up Contributions
(available if you are age 50 or older)
2015 2014
Traditional, Roth IRA $1,000 $1,000
Simple IRA $3,000 $2,500
401(k), 403(b), TSP plans $6,000 $5,500
Roth IRA Phase-Out Income Limits 2015 2014
Married filing jointly $183,000 – $193,000 $181,000 – $191,000
Single $116,000 – $131,000 $114,000 – $129,000
Deductible IRA Phase-Out Income Limits
If you are not covered by a retirement plan at work, but your spouse is
2015 2014
Married filing jointly*
*or if you lived with your spouse at any time during the year
$183,000 – $193,000 $181,000 – $191,000
Deductible IRA Phase-Out Income Limits
If you are covered by a retirement plan at work
2015 2014
Married filing jointly $98,000 – $118,000 $96,000 – $116,000
Single $61,000 – $71,000 $60,000 – $70,000
Tax Exemptions and Deductions 2015 2014
Personal and dependent exemption $4,000 $3,950
Standard deduction, married filing jointly $12,600 $12,400
Standard deduction, unmarried (other than surviving spouse and head of household) $6,300 $6,200
Business mileage (cents per mile) $0.575 $0.560
Schedule A long-term care premium deduction (NOTE:The LTC deduction is not an outright federal tax deduction. The amount shown is added to other health expenses for the year, and total costs that exceed 7.5% of your Adjusted Gross Income can be deducted.
If you are age 40 or under $380 $370
If you are age 41–50 $710 $700
If you are age 51–60 $1,430 $1,400
If you are age 61–70 $3,800 $3,720
If you are age 71 or over $4,750 $4,660
Social Security 2015 2014
Wage base $118,500 $117,000
Retirement earnings limit prior to full retirement age $15,720 $15,480
Tax Rates Married Filing Jointly Unmarried
(other than surviving spouse and head of household)
Your Marginal Tax Rate Is: If your 2015 taxable income is no more than 2014 limit If your 2015 taxable income is no more than 2014 limit
10% $18,450 $18,150 $9,225 $9,075
15% $74,900 $73,800 $37,450 $36,900
25% $151,200 $148,850 $90,750 $89,350
28% $230,450 $226,850 $189,300 $186,350
33% $411,500 $405,100 $411,500 $405,100
35% $464,850 $457,600 $413,200 $406,750+
39.6% $464,850+ $457,600+ $413,200+ $406,750+
Gifts and Bequests
You can give up to $5.43 million during your lifetime with no federal gift tax. The 2014 lifetime limit was $5.34 million.
In addition to the lifetime limit, you can give up to $14,000 annually free of federal gift tax to as many individuals as you wish. This amount is unchanged.

Originally published in Inside Personal Finance, February 2015 

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