2015 Pocket Tax Guide

Read the Pocket Guide below or download it as a PDF file.

2015 U.S. INDIVIDUAL INCOME TAX RATES

Married Taxpayers Filing Jointly or Surviving Spouse

                Base                           Tax              % On Excess
    Taxable Income                On Base             Over Base

          $             0                   $           0                       10%
                18,450                         1,845                       15%
                74,900                       10,313                       25%
              151,200                       29,388                       28%
              230,450                       51,578                       33%
              411,550                     111,324                       35%
              464,850                     129,997                    39.6%

Single

               Base                            Tax               % On Excess
     Taxable Income                On Base             Over Base

              $         0                   $           0                       10%
                  9,225                            923                       15%
                37,450                         5,156                       25%
                90,750                       18,481                       28%
              189,300                       46,075                       33%
              411,500                     119,401                       35%
              413,200                     119,996                    39.6%

2015 U.S. ESTATE AND TRUST RATES

            Base                                  Tax               % On Excess
     Taxable Income                  On Base             Over Base

          $              0                     $          0                         15%
                   2,500                             375                         25%
                   5,900                          1,225                         28%
                   9,050                          2,107                         33%
                 12,300                          3,180                      39.6%

Estate Tax Rates Exemption

The Estate tax exemption is $5,430,000.
The Maine tax exemption is $2,000,000.

Annual Gift Tax Exclusion Per Donee

Gifts per person - $14,000
Joint gifts by spouses - $28,000

Lifetime Gift Exemptions

Per person - $5,430,000
Per couple - $10,860,000

2015 U.S. INDIVIDUAL INCOME TAX RATES

Federal Standard Deduction*

                                                                               2014

Joint return                                                          $12,600
Single                                                                        6,300
Head of Household                                                9,250
Married filing separately                                       6,300
Additional - blind or elderly
         Single or Head of Household                       1,550
         Married filing jointly or separately              1,250

Deduction for dependents is $1,050 (or earned income plus $350 up to $6,300).
* You are allowed to deduct the greater of your standard deduction or your itemized deductions.

Capital Gain and Qualified Dividends

(Tax Rates on Assets Held More Than 12 Months)

Taxpayers in 10% or 15% Bracket                                      0%
Taxpayers in 25%-35% Bracket                                        15%
Taxpayers in 39.6% Bracket                                              20%
Collectibles (coins, art, antiques)                                      28%
Unrecaptured Gain on Real Estate (Sec. 1250 gain)      25%

Federal Personal Exemptions

Deduction for each taxpayer, spouse, and dependent                                           $4,000


2015 INVESTMENT INCOME SURTAX

3.8% on investment income above $200,000 (single) and $250,000 (joint filers)


2015 ESTIMATED TAX PAYMENTS

To avoid possible underpayment penalties, you are generally required to pay in through withholding or estimated tax payments the lesser of:

1) 100% of prior year tax liability (110% of prior year tax if 2014 AGI exceeds $150,000), or

2) 90% of current tax year liability.

2015 estimated tax payments for individuals are due by:

April 15, June 15, September 15, and January 15, 2016.

2015 MAINE INDIVIDUAL INCOME TAX RATES

Married Taxpayers Filing Jointly or Surviving Spouse

           Base                            Tax               % On Excess
Taxable Income                On Base             Over Base

       $10,450                     6.5% over $10,450         
         41,850                        2,041                           7.95%

Single & Married Filing Separate

           Base                            Tax                         % On Excess
Taxable Income                On Base                        Over Base

         $5,200                     6.5% over $5,200               6.5%
         20,900                            1,021                           7.95%

Maine Personal Exemptions

Deduction for each taxpayer, spouse, and dependent                                             $4,000

2015 MAINE CORPORATE INCOME TAX RATES

                                                                                                                              Of the
If Taxable Income is                                                                                            Amount
Between:                                                             The Tax is:                                  Over:

$                 0 -         25,000                                  0 +   3.50%            $                                0
          25,001 -        75,000                                875 +  7.93%                                     25,000
          75,001 -       250,000                            4,840 +  8.33%                                     75,000
        250,001      and above                         19,418 +  8.93%                                   250,000

2015 SOCIAL SECURITY INCOME

Maximum Annual Earned Income Limit - 2015

Under Normal Retirement Age (NRA)*       $15,720             
During year NRA is attained **                      41,880
Above NRA                                                       No limit

* Varies from age 65 to age 67 by year of birth

2015 U.S. CORPORATE INCOME TAX RATES

                                                                                              Of the
If Taxable Income is                                                        Amount
Between:                                             The Tax is:             Over:

$                 0 -          50,000                      0 +    15%      $                 0
          50,001 -         75,000                7,500 +    25%               50,000
          75,001 -       100,000              13,750 +    34%               75,000
        100,001 -       335,000              22,250 +    39%            100,000
        335,001 -  10,000,000            113,900 +    34%            335,000
   10,000,001 -  15,000,000         3,400,000 +    35%      10,000,000
   15,000,001 -  18,333,333         5,150,000 +    38%      15,000,000
   18,333,334 and above             6,416,667 +    35%      18,333,333


Personal Service Corporations - 35% flat tax rate

Capital Gains Tax Rate - Same as regular rate

2015 SOCIAL SECURITY TAX

                                Tax Base          Rate     Maximum Tax

Social Security        $118,500            6.2%            $7,347
Medicare                 no limit             1.45            no limit
                                                         7.65%

2015 SELF EMPLOYMENT

                                Tax Base           Rate        Maximum Tax

Social Security        $118,500          12.4%          $14,694
Medicare                   no limit           2.9              no limit
                                                         15.3%

2015 STANDARD MILEAGE DEDUCTIONS

               Use                                                        Per Mile

            Business                                                    56.0 cents
            Charitable                                                 14.0 cents
            Medical                                                    23.5 cents
            Moving                                                     23.5 cents

CODE SEC. 179 EXPENSE ALLOWANCE

Maximum Deduction                                                       $25,000

Investment Limitation                                                   $200,000

BONUS DEPRECIATION ALLOWANCE

Currently none. 50%: Deduction Qualified Investments in service after 1/1/13. Expired 12/31/13.

2015 COMPANY RETIREMENT PLAN CONTRIBUTION LIMITS

Individual Limitations

401(K) Contributions                                      $18,000

Catch-up contributions for age 50 and over - $6,000

Profit Sharing and Money Purchase Plans:
Lesser of 100% of compensation or $53,000
Non discrimination rules apply
Simplified Employee Pension (SEP) Plans:
Lesser of 25 % of compensation or $53,000
20% of self-employment income
Simple Plan Contributions                            12,500
Catch-up contributions for age 50 and over - $3,000

Employer Plan And Deduction Limitations

                                                 % of Company Compensation*

Profit Sharing or SEP Plan                                 25%
Money Purchase Plan                                        25%

*Or net self-employment income after SECA tax deduction and plan contribution. Maximum compensation available limited to $265,000 per participant in group.

2015 IRA AND PLAN LIMITS

General:

Contribution Limits – maximum combined contribution to Traditional IRA and Roth IRAs is $5,500. Contribution must be made before the original due date of the tax return. Catch-up contributions for age 50 and over - $1,000.


Married & Not a Participant in Company Plan:              

             Married                        Married AGI            Deduction Is            

     Spouse not participant             No Limit                $5,500* max.

          Spouse participant             < $183,000              $5,500* max

          Spouse participant     $183,000 - $193,000        phased out

           Spouse participant           >$193,000                No deduction


Single & Not a Participant in Company Plan

$5,500 max ($1,000 catch up for 50 & over)


Married Or Single & Active in Company Plan:

           Married AGI              Deduction Is             Single AGI            

           $0 - $98,000               $5,500* max.             $0 - $61,000

      $98,000 - 118,000             phased out            61,000 - 71,000


*Plus up to $5,500 for nonworking spouse under certain circumstances.


This publication is distributed with the understanding that we are not rendering legal, accounting or other advice and assumes no liability in connection with its use. This publication reflects tax laws in effect as of December 31, 2014