2015 Tax Rates QuickFacts US

2015 TAX RATES

2015 TAX RATES

 Use this link to download the PDF version of this post.

Standard Deductions
Single and married filing separately $6,300
Married filing jointly or surviving spouse $12,600
Heads of household $9,250

 

Standard Mileage Rates
Business us of auto 57.5¢ per mile
Charitable contributions 14¢ per mile
Medical use and moving expense 23¢  per mile

 

Social Security earnings limits for retired workers
Retirement age Earnings limit
Prior to retirement age $15,720
Year of retirement $41,880
At or over retirement age None

 

Noncorporate net capital gain and qualified dividend rates
15% – Normal rate, but 20% if taxable income is > $413,200 ($464,850 if married filing jointly)0% – If the gain would otherwise be taxed at a rate below 25% if it were ordinary income25% – Gain attributable to straight-line depreciation on Section 1250 property held > 1 year (Unrecaptured 1250 gains). If taxpayer is in a lower bracket, then lower rate applies. Ordinary rate applies to gain attributed to depreciation taken in excess of straight-line depreciation on 1250 property (1250 recapture).28% – Collectibles gain and gain from selling certain small business stock

 

Corporate income  tax  rate
Taxable income is over But not over The tax is + Of the amount over
– $50,000 15% – –
$50,000 $75,000 $7,500 25% $50,000
$75,000 $100,000 $13,750 34% $75,000
$100,000 $335,000 $22,250 39% $100,000
$335,000 $10,000,000 $113,900 34% $335,000
$10,000,000 $15,000,000 $3,400,000 35% $10,000,000
$15,000,000 $18,000,000 $5,150,000 38% $15,000,000
$18,000,000 – 35% – $18,000,000

 

Estate  and trust income  tax  rate
Taxable income is over But not over The tax is + Of the amount over
– $2,500 15% – –
$2,500 $5,900 $375 25% $2,500
$5,900 $9,050 $1,225 28% $5,900
$9,050 $12,300 $2,107 33% $9,050
$12,300 – $3,179.50 39.6% $12,300

 

 

Top individual state  rates
Illinois: 3.75% Minnesota: 9.85% Wisconsin: 7.65%

 

 

 

 

 

Personal exemption (see  phaseout below)$4,000Self-employment taxTax rate for self-employment income is 15.3% on first $118,500 and2.9% thereafter.

 

Kiddie tax

Investment income in excess of $2,100  is taxed at the higher of the parent’s rate or the child’s rate. Applies to unmarried children younger than 18, to children age 18 whose earned income is not more than half their support, and to children older than 18 but younger than age 24 who are full-time students and whose earned income is not more than half their support

 

Phaseouts of personal exemptions and itemized deductions
Begins with AGI above:
Single $258,250
Married filing jointly $309,900
Married filing separately $154,950
Head of household $284,050

 

Estate  and gift tax  rates for decedents dying  in 2015
Taxable amount over Taxable amount not over Tax on amount in first column Rate of tax on excess over amount in
first column
$0 $10,000 $0 18%
$10,000 $20,000 $1,800 20%
$20,000 $40,000 $3,800 22%
$40,000 $60,000 $8,200 24%
$60,000 $80,000 $13,000 26%
$80,000 $100,000 $18,200 28%
$100,000 $150,000 $23,800 30%
$150,000 $250,000 $38,800 32%
$250,000 $500,000 $70,800 34%
$500,000 $750,000 $155,800 37%
$750,000 $1,000,000 $248,300 39%
$1,000,000 – $345,800 40%

 

Applicable exclusion amount for estate, gift, and generation-skipping transfer tax  – 2015: $5,430,000
Gift tax  annual exclusion – 2015: $14,000

 

Health  savings  accounts
Plan minimum deductible (self/family) $1,300/$2,600
Contribution maximum (self/family) $3,350/$ 6,650
Catch-up contribution (age 55 or older) $1,000
Plan out-of-pocket limit (self/family) $6,450/$12,900

 

 
Single  filing
Taxable income is over But not over The tax is + Of the amount over
– $9,225 10% – –
$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

 

Married filing joint returns  and surviving spouses
Taxable income is over But not over The tax is + Of the amount over
– $18,450 10% – –
$18,450 $74,900 $1,845 15% $18,450
$74,900 $151,200 $10,312 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 35% $411,500
$464,850 – $129,996.50 39.6% $464,850

 

Married filing separately
Taxable income is over But not over The tax is + Of the amount over
– $9,225 10% – –
$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 35% $205,750
$232,425 – $64,998.25 39.6% $232,425

 

Heads of household
Taxable income is over But not over The tax is + Of the amount over
– $13,150 10% – –
$13,150 $50,200 $1,315 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 35% $411,500
$439,000 – $125,362 39.6% $439,000

 

 

 

 

Retirement plan  limits
Deferral limits for plans
§401(k) $18,000
§403(b) $18,000
§457 $18,000
SIMPLE $12,500
Catch-up contributions for participants age 50 or older
Other than SIMPLE plans $6,000
SIMPLE plans $3,000
Qualified plans – annual compensation limit $265,000
Defined benefit – maximum annual benefit $210,000
Defined contribution – maximum annual addition $53,000
“Key employee” in top-heavy plan $170,000
“Highly compensated employee” threshold $120,000
SEP compensation threshold for participation $600
Definition of “control employee” for fringe benefit valuation
Reg. §1.61-21(f)(5)(i) $105,000
Reg. §1.61-21(f)(5)(iii) $210,000

 

Individual  retirement accounts
Traditional IRAs
Contribution limit $5,500
Catch-up contribution (age 50 or older) $1,000
Deductible amount
Phaseout begins at modified adjusted gross income
Active participant in other plan filing joint return or qualifying widow(er) $98,000
Not active participant, but active participant spouse $183,000
All other taxpayers (except married filing separately) $61,000
Roth IRAs
Contribution limit $5,500
Catch-up contribution (age 50 or older) $1,000
Phaseout begins at modified adjusted gross income for joint return or qualifying widow(er) $183,000
All other taxpayers (except married filing separately) $116,000

 

3.8% Medicare tax  on net investment  income Tax imposed on lesser of: “net investment income” or MAGI > $250,000 (MFJ) or $200,000 (Single)
Medicare tax on high-income earners
Additional 0.9% tax on wages greater than:
Single $200,000
Married filing jointly $250,000
Married filing separately $125,000
Head of household $200,000

 

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2014 US Tax Rates QuickTaxFacts

2014 Tax Rates

2014 TAX RATES  Quick  TaxFacts (US)

 Use this link to download the PDF version of this post.

Standard Deductions
Single $6,200
Married filing separately $6,200
Married filing jointly or surviving spouse $12,400
Heads of household $9,100

 

Standard Mileage Rates
Business us of auto 56¢ per mile
Charitable contributions 14¢ per mile
Medical use 23.5¢  per mile
Moving expense 23.5¢  per mile

 

Social Security earnings limits for retired workers
Retirement age Earnings limit
Prior to retirement age $15,480
Year of retirement $41,400
At or over retirement age None

 

Noncorporate net capital gain and qualified dividend rates
15% – Normal rate, but 20% if taxable income is > $406,750 ($457,600 if married filing jointly)0% – If the gain would otherwise be taxed at a rate below 25% if it were ordinary income25% – Gain attributable to straight-line depreciation on Section 1250 property held > 1 year (Unrecaptured 1250 gains). If taxpayer is in a lower bracket, then lower rate applies. Ordinary rate applies to gain attributed to depreciation taken in excess of straight-line depreciation on 1250 property (1250 recapture).28% – Collectibles gain and gain from selling certain small business stock

 

Corporate income  tax  rate
Taxable income is over But not over The tax is + Of the amount over
$0 $50,000 15% – –
$50,000 $75,000 $7,500 25% $50,000
$ 75,000 $100,000 $13,750 34% $75,000
$100,000 $335,000 $22,250 39% $100,000
$335,000 $10,000,000 $113,900 34% $335,000
$10,000,000 $15,000,000 $3,400,000 35% $10,000,000
$15,000,000 $18,333,333 $5,150,000 38% $15,000,000
$18,333,333 – – 35% $0

 

Federal estate and trust tax rate
Taxable income is over But not over The tax is + Of the amount over
            $0 $2,500 15% – –
$2,500 $5,800 $375 25% $2,500
$ 5,800 $8,900 $1,200 28% $5,800
$8,900 $12,150 $2,068 33% $8,900
$12,150 – $3,140.50 39.6% $12,150

 

 

 

 

 

 

 

 

Personal exemption (see  phaseout below)$3,950Self-employment taxTax rate for self-employment income is 15.3% on first $117,000 and2.9% thereafter.

 

Kiddie tax

Investment income in excess of $2,000 is taxed at the higher of the parent’s rate or the child’s rate. Applies to unmarried children younger than 18, to children age 18 whose earned income is not more than half their support, and to children older than 18 but younger than age 24 who are full-time students and whose earned income is not more than half their support

 

Phaseouts of personal exemptions and itemized deductions
Begins with AGI above:
Single $254,200
Married filing jointly $305,050
Married filing separately $152,525
Head of household $279,650

 

Estate  and gift tax  rates for decedents dying  in 2014
Taxable amount over Taxable amount not over Tax on amount in first column Rate of tax on excess over amount in
first column
$0 $10,000 $0 18%
$10,000 $20,000 $1,800 20%
$20,000 $40,000 $3,800 22%
$40,000 $60,000 $8,200 24%
$60,000 $80,000 $13,000 26%
$80,000 $100,000 $18,200 28%
$100,000 $150,000 $23,800 30%
$150,000 $250,000 $38,800 32%
$250,000 $500,000 $70,800 34%
$500,000 $750,000 $155,800 37%
$750,000 $1,000,000 $248,300 39%
$1,000,000 – $345,800 40%

 

Applicable exclusion amount for estate, gift, and generation-skipping transfer tax  – 2014: $5,340,000
Gift tax  annual exclusion – 2014: $14,000

 

Health  savings  accounts
Plan minimum deductible (self/family) $1,250/$2,500
Contribution maximum (self/family) $3,300/$ 6,650
Catch-up contribution (age 55 or older) $1,000
Plan out-of-pocket limit (self/family) $6,350/$12,700

 

 
Single  filing
Taxable income is over But not over The tax is + Of the amount over
$0 $9,075 10% – –
$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

 

Married filing joint returns  and surviving spouses
Taxable income is over But not over The tax is + Of the amount over
$0 $18,150 10% – –
$18,150 $73,800 $1,815 15% $18,150
$73,800 $148,850 $10,162.50 25% $73,800
$148,850 $226,850 $28,925 28% $148,850
$226,850 $405,100 $50,765 33% $226,850
$405,100 $457,600 $109,587.50 35% $405,100
$457,600 – $127,962.50 39.6% $457,600

 

Married filing separately
Taxable income is over But not over The tax is + Of the amount over
$0 $9,075 10% – –
$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

 

Heads of household
Taxable income is over But not over The tax is + Of the amount over
$0 $12,950 10% – –
$12,950 $49,400 $1,295 15% $12,950
$49,400 $127,550 $6,762.50 25% $49,400
$127,550 $206,000 $26,300 28% $127,550
$206,000 $405,100 $48,434 33% $206,000
$405,100 $432,200 $113,939 35% $405,100
$432,200 – $123,424 39.6% $432,200

 

 

 

 

Retirement plan  limits
Deferral limits for plans
§401(k) $17,500
§403(b) $17,500
§457 $17,500
SIMPLE $12,000
Catch-up contributions for participants age 50 or older
Other than SIMPLE plans $5,500
SIMPLE plans $2,500
Qualified plans – annual compensation limit $260,000
Defined benefit – maximum annual benefit $210,000
Defined contribution – maximum annual addition $52,000
“Key employee” in top-heavy plan $170,000
“Highly compensated employee” threshold $115,000
SEP compensation threshold for participation $550
Definition of “control employee” for fringe benefit valuation
Reg. §1.61-21(f)(5)(i) $105,000
Reg. §1.61-21(f)(5)(iii) $210,000

 

Individual  retirement accounts
Traditional IRAs
Contribution limit $5,500
Catch-up contribution (age 50 or older) $1,000
Deductible amount
Phaseout begins at modified adjusted gross income
Active participant in other plan filing joint return or qualifying widow(er) $96,000
Not active participant, but active participant spouse $181,000
All other taxpayers (except married filing separately) $60,000
Roth IRAs
Contribution limit $5,500
Catch-up contribution (age 50 or older) $1,000
Phaseout begins at modified adjusted gross income for joint return or qualifying widow(er) $181,000
All other taxpayers (except married filing separately) $114,000

 

3.8% Medicare tax  on net investment  income Tax imposed on lesser of: “net investment income” or MAGI > $250,000 (MFJ) or $200,000 (Single)
Medicare tax on high-income earners
Additional 0.9% tax on wages greater than:
Single $200,000
Married filing jointly $250,000
Married filing separately $125,000
Head of household $200,000

 

www.hcbtax.com
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Reporting Requirements of U.S. Direct Investment Abroad: 2014 Benchmark Survey

Reporting Requirements of U.S.

Reporting Requirements of U.S. Direct Investment Abroad: 2014 Benchmark Survey

The US Department of Commerce’s Bureau of Economic Analysis (“BEA”) under the authority of the International Investment and Trade in Services Survey Act conducts the BE-10 survey every 5 years. The survey is used to collect data for analytical purposes to generate comprehensive statistics on the direct investment abroad by US individuals and entities (collectively referred to as “US person”). For this purpose, a US person means any individual, branch, partnership, associated group, association, estate, trust, corporation, or other organization, who is resident of the United States or subject to the jurisdiction of the United States, who held at least 10% of the voting stock of an incorporated foreign business or an equivalent interest in an unincorporated foreign business in 2014, including if the foreign business began, was acquired, got terminated or liquidated during that year. The 2014 BE-10 surveys are due May 29, 2015, and June 30, 2015, depending on the quantity of the BE-10 surveys filed by the US person.

The BE-10 surveys are mandatory, even if not contacted by BEA. They carry hefty non-filing penalties in the form of civil penalties ranging from $2,500 to $25,000, and a requirement to comply with mandatory filings for those who failed to do it in the first place. Those who willfully fail to comply may face either $10,000 penalty or a year of imprisonment, or both.

For more details, please go to https://www.bea.gov/surveys/pdf/be10/BE-10%20Instructions.pdf

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American Citizens and Green Card Holders in Canada and Other Countries

american citizens in canada

As a result of the US income tax provisions imposing residency and citizenship-based taxation on individual taxpayers, American citizen and Green card holders are required to file their US income tax returns and certain disclosures irrespective of the country in which they reside. This requirement exists even if there no additional US tax due after a foreign tax credit or earned income tax exclusion has been claimed. When completing the returns for Americans residing outside the US, we not only take into consideration the US and residency country domestic tax provisions but also account for a bi-lateral income tax treaty which may override or mitigate certain domestic tax legislation.

The complexity of US tax filings for Americans abroad directly correlates to the number and the type of accounts and holdings they may have in their country of residency. Operating through a non-US partnership or corporation, holding investments in non-US bank accounts or trusts, and deferring employment income through non-US pensions may significantly increase the filing burden and the related tax return preparation cost.

There is a presumption that if Americans reside in the country with a higher rate of tax, such as Canada, they should not owe any additional tax to the IRS. Unfortunately, this is not always the case and takes many by surprise. Investments or holdings deemed tax efficient in the country of residency may not have an identical treatment under the US tax law which leads to an overall greater tax cost either on a temporary or permanent basis.

Keeping clients US and Canadian personal income tax compliance in order, optimizing their overall income tax cost, educating about risks and penalties for failure to accurately disclose foreign accounts and assets, and providing an assistance on any tax challenges from CRA or IRS are types of services in which our company’s advisors have an extensive knowledge and experience in helping our clients.

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