FastTaxFacts Welcome to our annual at-a-glance compilation of federal and state tax information. User-friendly tax rate schedules, facts, figures and assorted data make this time-saving section a handy companion. Keep it within arm s reach as you enter the upcoming busy season. As of Oct. 21, Special thanks to: Teresa Schacherer and Brooke Sigler, CPA of Windes, Inc., as well as the FTB, for compiling this information. www.calcpa.org NOVEMBER CALIFORNIA CPA 11
Join CalCPA s TaxTalk Listserve: www.calcpa.org/taxtalklistserve TAX DATA SCHEDULE Federal California Standard Deductions Single $ 6,300 $4,129 Married Filing Jointly, Surviving Spouse 12,600 8,258 Married Filing Separately 6,300 4,129 Head of Household 9,300 8,258 Additional for Age 65 and Older or Blind Married 1,250 Additional for Age 65 and Older or Blind Unmarried 1,550 (per individual for each situation, age or blind) Taxpayer Claimed as a Dependent 1,050 1,050 Personal or Dependent Exemption 4,050 (Social Security Number required) California Exemption Credits Single, Married Filing Separately, Head of Household $ 111 Married Filing Jointly, Surviving Spouse 222 Dependent 344 Blind or Age 65 and Older 111 Federal California Beginning of Itemized Deduction Phase-out Range Based on Federal AGI Single $259,400 $182,459 Married Filing Jointly, Surviving Spouse 311,300 364,923 Married Filing Separately 155,650 182,459 Head of Household 285,350 273,692 Rate Reduced over federal AGI limits 3% 6% Schedule A Medical Deduction Based on federal AGI 10% 7.5% Based on federal AGI if taxpayer or spouse is age 65 or older 7.5% 7.5% Schedule A Miscellaneous Deduction Based on federal AGI 2% 2% Alternative Minimum Tax (AMT) Rate AMTI Less Exemption up to $186,300 26% AMTI Less Exemption over $186,300 ($93,150 if Married Filing Separately) 28% AMTI Less Exemption 7% Senior Head of Household Credit 2% of California taxable income, maximum California AGI of $71,370 with maximum credit of $1,345 California Joint Custody Head of Household Credit and Dependent Parent Credit Each is 30% of net tax with maximum credit of $440 Child and Dependent Care Credit Percentage of federal credit for California AGI limits $0 40,000 50% 40,001 70,000 43% 70,001 100,000 34% 100,001 or more 0% 0162 12 CALIFORNIA CPA NOVEMBER www.calcpa.org California Renter s Credit Married Filing Jointly, Head of Household, Surviving Spouse if AGI is below $78,125 $120 Single or Married Filing Separately if AGI is below $39,062 60 IRC Section 179 Deduction $500,000 $25,000 Sec. 179 Purchase Phaseout $2,010,000 $200,000 Beginning of Personal Exemption Phase-out Range Based on Federal AGI Single $259,400 $182,459 Married Filing Jointly, Surviving Spouse 311,300 364,923 Married Filing Separately 155,650 182,459 Head of Household 285,350 273,692 AMT Exemption Amounts Married Filing Jointly, Surviving Spouse $83,800 $89,467 Single, Head of Household 53,900 67,101 Married Filing Separately 41,900 44,732 Estate or Trust 23,900 44,732 AMT Exemption Phase-out Married Filing Jointly, Surviving Spouse $159,700 $335,502 Single, Head of Household 119,700 251,626 Married Filing Separately, Estate or Trust 79,850 167,749 Self-Employed Health Insurance Premiums Adjustment for AGI, percentage of total qualifying health insurance premiums 100% 100% Auto Standard Mileage Allowances Business.54.54 Charity work general.14.14 Medical or moving.19.19 U.S. Savings Bond Interest Exclusion Phase-out Based on Modified AGI Joint Return, Surviving Spouse $116,300 146,300 All Other Returns 77,550 92,550 California SDI Federal tax deduction* Annual wage limit $106,742 Rate.9% Tax 960.68 *Amounts paid to a voluntary program in lieu of the state programs are not deductible, but may be a credit on California return.
See where your tax dollars are going: www.whitehouse.gov/2014-taxreceipt FEDERAL TAX RATE SCHEDULE Taxable But Of The Income Not Amount Is Over Over Pay +% Over Single $0 $9,275 $0 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 and more 120,529.75 39.6% 415,050 Head of Household $0 $13,250 $0 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 and more 125,936.00 39.6% 441,000 Married Filing Jointly or Surviving Spouse $0 $18,550 $0 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 and more 130,578.50 39.6% 466,850 Married Filing Separately $0 $9,275 $0 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 and more 65,289.25 39.6% 233,475 41,629 52,612 1,437.79 8.00% 41,629 52,612 268,750 2,316.43 9.30% 52,612 268,750 322,499 22,417.26 10.30% 268,750 322,499 537,498 27,953.41 11.30% 322,499 537,498 and more 52,248.30 12.30% 537,498 Married Filing Jointly or Surviving Spouse $0 $16,030 $0 1.00% $0 16,030 38,002 160.30 2.00% 16,030 38,002 59,978 599.74 4.00% 38,002 59,978 83,258 1,478.78 6.00% 59,978 83,258 105,224 2,875.58 8.00% 83,258 105,224 537,500 4,632.86 9.30% 105,224 537,500 644,998 44,834.53 10.30% 537,500 644,998 1,074,996 55,906.82 11.30% 644,998 1,074,996 and more 104,496.59 12.30% 1,074,996 Head of Household $0 $16,040 $0 1.00% $0 16,040 38,003 160.40 2.00% 16,040 38,003 48,990 599.66 4.00% 38,003 48,990 60,630 1,039.14 6.00% 48,990 60,630 71,615 1,737.54 8.00% 60,630 71,615 365,499 2,616.34 9.30% 71,615 365,499 438,599 29,947.55 10.30% 365,499 438,599 730,997 37,476.85 11.30% 438,599 730,997 and more 70,517.82 12.30% 730,997 LUXURY AUTO LIMIT Depreciation limitations for automobiles first placed in service during the calendar year, for which the section 168 (k) additional first year depreciation deduction applies. Year First Second Third Thereafter (Passenger Autos) $11,160 5,100 3,050 1,875 (Trucks & Vans) $11,560 5,700 3,350 2,075 www.calcpa.org NOVEMBER CALIFORNIA CPA 13 Estate or Nongrantor Trust $0 $2,550 $0 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 and more 3,206.00 39.6% 12,400 STATE TAX RATE SCHEDULE Single, Married Filing Separately, Fiduciary Return $0 $8,015 $0 1.00% $0 8,015 19,001 80.15 2.00% 8,015 19,001 29,989 299.87 4.00% 19,001 29,989 41,629 739.39 6.00% 29,989 Depreciation limitations for automobiles first placed in service during the calendar year, for which the section 168 (k) additional first year depreciation deduction does not apply. Year First Second Third Thereafter (Passenger Autos) $3,160 5,100 3,050 1,875 (Trucks & Vans) $3,560 5,700 3,350 2,075 SOCIAL SECURITY AND MEDICARE TAXES 2015 Social Security Tax Maximum wage base $118,500 $118,500
Income tax has made more liars out of the American people than golf. Will Rogers 2015 Social Security rate employee 6.2% 6.2% Social Security rate employer 6.2% 6.2% Social Security rate self-employed 12.4% 12.4% Medicare Tax Maximum wage base Unlimited Unlimited Medicare rate employee/employer 1.45% 1.45% Medicare rate self-employed 2.90% 2.90% Monthly Medicare Part B Premium $104.90 $121.80 Additional Medicare Tax An additional 0.9% Medicare tax is imposed on an employee s wages received in excess of Married Filing Jointly $250,000 $250,000 Married Filing Separately 125,000 125,000 All Others 200,000 200,000 Net Investment Income Tax (NIIT) - also known as the Unearned Income Medicare Contribution Tax An additional 3.8% tax may be imposed on net investment income if modified AGI is in excess of Married Filing Jointly $250,000 $250,000 Married Filing Separately 125,000 125,000 All Others 200,000 200,000 Earned Income Ceilings for Social Security Benefits Under full retirement age $15,720 $15,720 Full retirement age Unlimited Unlimited TRADITIONAL & ROTH IRAs 2015 Contribution Limit $5,500 $5,500 Catch-up Contribution age 50 and older 1,000 1,000 IRA Deduction Phase-out for Active Participants Single $61,000 71,000 $61,000 71,000 Married Filing Jointly 98,000 118,000 98,000 118,000 Married Filing Separately 0 10,000 0 10,00 IRA Deduction Phase-out for Spousal Contributions Married Filing Jointly 183,000 193,000 194,000 193,000 Roth IRA Contribution Phase-out Single $116,000 131,000 117,000 132,000 Married Filing Jointly 183,000 193,000 184,000 194,000 Married Filing Separately 0 10,000 0 10,000 Roth IRA Conversion Phase-out Single no AGI Limit no AGI Limit Married Filing Jointly no AGI Limit no AGI Limit Married Filing Separately no AGI Limit no AGI Limit IRA & PENSION CREDIT Saver s Credit Rate applied to maximum contribution of $2,000 and based on AGI 2 RETIREMENT PLAN LIMITATIONS 2015 Maximum 401(k) or 403(b) Deferral $18,000 $18,000 Maximum Defined Contribution Plan Contribution 53,000 53,000 Maximum Annual Benefit for Defined Benefit Plans 210,000 210,000 Annual Compensation Limit for Computing Plan Benefits 265,000 265,000 Annual Compensation Limit for the Definition of Highly Compensated Employee IRC Section 414(q) 120,000 120,000 Compensation Minimum for SEP plan 600 600 Maximum Contribution for SIMPLE plan 12,500 12,500 Catch-up Contribution for 401(k) or 403(b) for taxpayers age 50 and older 6,000 6,000 Catch-up Contribution for SIMPLE for taxpayers age 50 and older 3,000 3,000 14 CALIFORNIA CPA NOVEMBER www.calcpa.org Key Employee for Top Heavy Purposes: Officers Earning Over $170,000 $170,000 A more-than-5-percent Owner N/A N/A A more-than-1-percent Owner Earning Over 150,000 150,000 Joint Filers Heads of All Other Credit Household Filers Rate $0 37,000 $0 27,750 $0 18,500 50% 37,000 40,000 27,750 30,000 18,500 20,000 20% 40,000 61,500 30,000 46,125 20,000 30,750 10% Over 61,500 Over 46,125 Over 30,750 0% ESTATE & GIFT TAX Calendar Estate/GST tax Highest estate Year transfer exemption and gift tax rate 2015 $5,430,000 40% $5,450,000 40% Gift tax: Annual Gift Limitation of $14,000 for. Lifetime Exemption of $5,450,000 after Dec. 31, 2015. EDUCATION-RELATED TAX BENEFITS Coverdell Educational Savings Accounts Annual Contribution Limit $2,000 Contribution phase-out based on modified AGI Married Filing Jointly $190,000 220,000 All Others 95,000 110,000
Did You Know? The Bureau of Internal Revenue, predecessor to the IRS, was created in 1862. 016 Student Loan Interest Deduction Maximum interest deduction $2,500 Deduction phase-out based on modified AGI Married Filing Jointly $130,000 160,000 All Others 65,000 80,000 American Opportunity Tax Credit Maximum Credit $2,500 Credit phase-out based on modified AGI Married Filing Jointly $160,000 180,000 All Others 80,000 90,000 Lifetime Learning Credit Maximum Credit $2,000 Credit phase-out based on modified AGI Married Filing Jointly $111,000 131,000 All Others 55,000-65,000 Fast Tax Facts provides general guidance to CalCPA members. CalCPA is not engaged in rendering accounting or other professional advice. Numbers in Fast Tax Facts are subject to change. Important Phone Numbers Tax Practitioner Hotlines IRS Priority Service: (866) 860-4259 FTB: (916) 845-7057 FTB fax: (916) 845-9300 FTB e-file: (916) 845-0353 EDD: (888) 745-3886 BOE: (800) 401-3661 Application for Taxpayer ID Number Federal Form SS-4 Online: www.irs.gov/businesses Federal Form SS-4 Fax (859) 669-5760 EDD Form DE 1 (916) 654-8706 EDD Form DE 1 Fax (916) 654-9211 EDD Form DE 1 Online: https://eddservices.edd.ca.gov NOTE: *For Federal Form SS-4 Phone: IRS no longer issues EINs by telephone for domestic taxpayers. Only international applicants can receive an EIN by telephone. INFORMATION AT YOUR FINGERTIPS You re busy. You have places to be. And our digital California CPA magazine full of news, trends, technical info and more is there with you. Download the issue to your device, view past issues or be social and share an article link. Check it out today: californiacpa.calcpa.org