• 2015 Social Security wage base is $118,500.
• Self-employed:
  • 2015 self-employment tax rate is 15.3%, which equals the Social Security rate of 12.4% plus the Medicare tax rate of 2.9%.
  • The 15.3% rate applies to earnings of up to $118,500 after the earnings are reduced by 7.65%. Schedule SE is used to figure Self-employment tax.
  • If net earnings exceed $118,500, the 2.9% Medicare rate applies to the entire amount. There is no earnings limit for Medicare tax.
  • One half of the self-employment tax may be deducted on the first page of Form 1040 as an above-the-line deduction. This means, you don't have to itemize to claim this deduction.
• Employees:
  • 2015 Social Security rate for employees and employers is 6.2% each ($7,347 each), for a total rate of 12.4%.
  • 2015 Medicare tax rate for employees and employers is 1.45% each, for a total of 2.9%.
  • Medicare tax is withheld from all wages regardless of amount.

2015 - Each Allowable Exemption: $4,000

Phaseout of Exemption Starts / Ends:

• Joint return/Qualifying widow(er): $309,900 / $432,400
• Head of Household: $284,050 / $406,550
• Single: $258,250 / $380,750
• Married filing separately: $154,950 / $216,200

• Married filing Joint return: $12,600
• Qualifying widow(er): $12,600
• Head of household: $9,250
• Single: $6,300
• Married filing separately: $6,300
• Dependents - minimum deduction: $1,050
• Additional Deduction if Age 65 or Older, or Blind - 2015:
  • Married-per-spouse, filing jointly or separately:
    • $1,250 ($2,500 for age and blindness)
  • Qualifying widow(er):
    • $1,250 ($2,500 for age and blindness)
  • Single or head of household:
    • $1,550 ($3,100 for age and blindness)

• Business: 57.5 cents per mile
• Medical and Moving: 23 cents per mile
• Charitable volunteers: 14 cents per mile

• Transit passes and commuter vehicle transport: $130 per month
• Qualified parking: $250 per month
• Qualified bicycle commuting: $20 per month

Traditional IRAs:

• Traditional IRA contribution limit: $5,500
• Additional contribution if age 50 or older but under 70 1/2: $1,000
• Deduction phaseout for active plan participant:
  • Single or head of household: $61,000 - $71,000
  • Married filing jointly, two participants: $98,000 - $118,000
  • Married filing jointly, one participant:
    • Participant spouse: $98,000 - $118,000
    • Non-participant spouse: $183,000 - $193,000
    • Married filing separately, live together, either participates:
      • $0 - $10,000
  • Married filing separately, live apart all year:
    • Participant spouse: $61,000 - $71,000
    • Non-participant spouse: no phaseout

Roth IRAs:

• Roth IRA contribution limit: $5,500
• Additional contribution if age 50 or older but under 70 1/2: $1,000
• Contribution limit phaseout range:
  • Single, head of household: $116,000 - $131,000
  • Married filing separately, live apart all year: $116,000 - $131,000
  • Married filing jointly, or qualifying widow(er): $183,000 - $193,000
  • Married filing separately, live together at any time: $0 - $10,000

• 401(k), 403(b), 457 plans: $18,000
• Salary-reduction SEP: $18,000
• SIMPLE IRA: $12,500
• Additional contribution if age 50 or older:
  • 401(k), 403(b), governmental 457 and SEP plans: $6,000
  • SIMPLE IRA: $3,000

• American Opportunity credit limit-per student: $2,500
• Lifetime Learning credit limit-per-taxpayer: $2,000
• Phaseout of American Opportunity credit:
  • Married filing jointly: $160,000 - $180,000
  • Single, head of household, or qualifying widow(er): $80,000 - $90,000
• Phaseout of Lifetime Learning credit:
  • Married filing jointly: $110,000 - $130,000
  • Single, head of household, or qualifying widow(er): $55,000 - $65,000
• Student loan interest deduction limit: $2,500
  • Phaseout of deduction limit:
    • Married filing jointly: $130,000 - $160,000
    • Single, head of household, qualifying widow(er): $65,000-$80.000
• Coverdell ESA limit: $2,000
  • Phaseout of limit:
    • Married filing jointly: $190,000 - $220,000
    • All others: $95,000 - $110,000
• Tuition and fees deduction:
  • Tuition and fees deduction: tier 1 limit Income cut-off $4,000
    • Married filing jointly: $130,000
    • Single, head of household, or qualifying widow(er) $65,000
  • Tuition and fees deduction: tier 2 limit Income cut-off $2,000
    • Married filing jointly: $160,000
    • Single, head of household, or qualifying widow(er): $80,000

• Limit on premium allowed as medical expense
  • Age 40 or under: $380
  • Over 40 but not over 50: $710
  • Over 50 but not over 60: $1,430
  • Over 60 but not over 70: $3,800
  • Over 70: $4,750