January 09, 2015

Income Tax Key Numbers

Alternative minimum tax (AMT) 2014 2015
Maximum AMT exemption amount $82,100 (MFJ) $52,800 (Single/HOH) $41,050 (MFS) $83,400 (MFJ) $53,600 (Single/HOH) $41,700 (MFS)
Exemption phaseout threshold $156,500 (MFJ) $117,300 (Single/HOH) $78,250 (MFS) $158,900 (MFJ) $119,200 (Single/HOH) $79,450 (MFS)
26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount) $182,500 ($91,250 if MFS) $185,400 ($92,700 if MFS)
Exemptions/itemized deductions 2014 2015
Personal & dependency exemptions $3,950 $4,000
Phaseout threshold for exemptions and itemized deductions $305,050 (MFJ) $279,650 (HOH) $254,200 (Single) $152,525 (MFS) $309,900 (MFJ) $284,050 (HOH) $258,250 (Single) $154,950 (MFS)
Standard deduction 2014 2015
Standard deduction amount $12,400 (MFJ) $9,100 (HOH) $6,200 (Single) $6,200 (MFS) $12,600 (MFJ) $9,250 (HOH) $6,300 (Single) $6,300 (MFS)
Standard deduction for dependent Greater of $1,000 or $350 + earned income Greater of $1,050 or $350 + earned income
Additional deduction for aged/blind $1,550 (single or head of household) $1,200 (all other filing statuses) $1,550 (single or head of household) $1,250 (all other filing statuses)
Top tax brackets 2014 2015
Single 39.6% of taxable income exceeding $406,750 + $118,118.75 39.6% of taxable income exceeding $413,200 + $119,996.25
MFJ 39.6% of taxable income exceeding $457,600 + $127,962.50 39.6% of taxable income exceeding $464,850 + $129,996.50
MFS 39.6% of taxable income exceeding $228,800 + $63,981.25 39.6% of taxable income exceeding $232,425 + $64,998.25
HOH 39.6% of taxable income exceeding $432,200 + $123,424 39.6% of taxable income exceeding $439,000 + $125,362
Long-term capital gains and qualifying dividends1 generally taxed at maximum rate of: 2014 2015
Taxpayers in top (39.6%) tax bracket 20% 20%
Taxpayers in 25%, 28%, 33%, and 35% tax rate brackets 15% 15%
Taxpayers in tax rate bracket 15% or less 0% 0%

1 Generally, qualifying dividends are dividends received by an individual shareholder from domestic and qualified foreign corporations

Unearned income Medicare contribution tax (Net investment income tax) 2014 2015
Amount of tax 3.80% 3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
Individuals $200,000 $200,000
Married filing jointly $250,000 $250,000
Married filing separately $125,000 $125,000
Standard mileage rates 2014 2015
Use of auto for business purposes (cents per mile) $0.56 $0.575
Use of auto for medical purposes (cents per mile) $0.235 $0.23
Use of auto for moving purposes (cents per mile) $0.235 $0.23
Use of auto for charitable purposes (cents per mile) $0.14 $0.14

Qualified charitable distributions (QCDs)

Qualified charitable distributions (QCDs) are distributions made directly from an IRA to a qualified charity. Such distributions may be excluded from income and count toward satisfying any required minimum distributions (RMDs) you would otherwise have to receive from your IRA. Individuals age 70½ and older could make up to $100,000 in QCDs for 2014. Absent new legislation, however, QCDs cannot be made for 2015.

Provisions that are extended through 2014 and then expire

  • Increased Internal Revenue Code (IRC) Section 179 expense limits ($500,000 maximum amount decreases to $25,000 in 2015) and “bonus” depreciation provisions
  • The $250 above-the-line tax deduction for educator classroom expenses
  • The ability to deduct mortgage insurance premiums as qualified residence interest
  • The ability to deduct state and local sales tax in lieu of the itemized deduction for state and local income tax
  • The deduction for qualified higher education expenses

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