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Category Archives: Tax Deductions And Credits
Tax Rates & Deductions- 2015 Returns
TAX RATES & DEDUCTIONS FOR 2015 TAX RETURNS/ FILED IN 2016:
TAX RATES:
SINGLE: TAXABLE INCOME
0 to 9225 X 10% Minus 0.00 Equals TAX
9226 to 37450 X 15% Minus 461.25 Equals TAX
37451 to 90750 X 25% Minus 4206.25 Equals TAX
90751 to 189300 X 28% Minus 6928.75 Equals TAX
189301 to 411500 X 33% Minus 16393.75 Equals TAX
411501 to 413200 X 35% Minus 24623.75 Equals TAX
413201 and up X 39.60% Minus 43630.95 Equals TAX
MFJ/QW:TAXABLE INCOME
0 to 18450 X 10% Minus 0.00 Equals TAX
18451 to 74900 X 15% Minus 922.50 Equals TAX
74901 to 151200 X 25% Minus 8412.50 Equals TAX
151201 to 230450 X 28% Minus 12948.50 Equals TAX
230451 to 411500 X 33% Minus 24471.50 Equals TAX
411501 to 464850 X 35% Minus 32701.00 Equals TAX
464851 and up X 39.60% Minus 54084.10 Equals TAX
HOH: TAXABLE INCOME
0 to 13150 X 10% Minus 0.00 Equals TAX
13151 to 50200 X 15% Minus 657.50 Equals TAX
50201 to 129600 X 25% Minus 5677.50 Equals TAX
129601 to 209850 X 28% Minus 9565.50 Equals TAX
209851 to 411500 X 33% Minus 20058.00 Equals TAX
411501 to 439000 X 35% Minus 28288.00 Equals TAX
439001 and up X 39.60% Minus 48482.00 Equals TAX
MFS: TAXABLE INCOME
0 to 9225 X 10% Minus 0.00 Equals TAX
9226 to 37450 X 15% Minus 461.25 Equals TAX
37451 to 75600 X 25% Minus 4206.25 Equals TAX
75601 to 115225 X 28% Minus 6474.25 Equals TAX
115226 to 205750 X 33% Minus 12235.50 Equals TAX
205751 to 232425 X 35% Minus 16350.50 Equals TAX
232426 and up X 39.60% Minus 27042.05 Equals TAX
STANDARD DEDUCTIONS:
SINGLE/MFS 6300
MFJ/QW 12600
HOH 9250
Additional added if 65 or older or blind/per person, per event:
MFJ/QW/MFS plus 1250
S/HOH plus 1550
PERSONAL EXEMPTIONS: 4000 Per Person
STANDARD MILEAGE RATES:
BUSINESS 57.5 Cents per Mile
CHARITABLE 14 Cents per Mile
MEDICAL 23 Cents per Mile
MOVING 23 Cents per Mile
EIC MAXIMUM INCOME LIMITS:
CHILDREN: NONE 1 2 3
MFJ 20330 44651 49974 53267
S/HOH/QW 14820 39131 44454 47747
A TAX HAVEN 501-262-1040 ataxhaven.com
Tax Pocket App Lends a Helping Hand to Taxpayers
Visit your App Store (Apple App Store and Google Play) and add Tax Pocket to your favorite device!
Tax Pocket combines several powerful features into one solution for fast, accurate, and secure tax record keeping and reporting.
Choose Heather Worrell, Profile ID #58074 / A Tax Haven as your Tax Professional, and your helping hand will be ready to start tracking mileage and expenses.
It offers a Mileage Tracker, My Tracker– this is customizable and keeps records of business expenses, medical expenses, childcare expenses, charitable donations, travel expenses, business meals, education expenses, etc., Direct Access to contact A Tax Haven, an Event Calendar for tax deadlines, a Notification Tray for tax messages, a Tax Organizer, and a Newsletter. You can even add receipts! Best of all, you can send a detailed report to yourself or to me- Your Tax Professional at A Tax Haven!
What an awesome way to relieve some of that tax time stress!
IRS Begins Accepting Returns January 20th, 2015
Despite rumors of the IRS starting tax season later than the previous years, the IRS has now said it will begin accepting tax returns on January 20, 2015. Congress did indeed seem to drag their feet for quite awhile, knowing many Tax-Extenders had expired at the end of 2013, but thankfully, they finally decided to continue with many of the Tax-Extenders, and the legislation was signed into law on Dec. 19, 2014. Unfortunately, they only extended them through Dec. 31, 2014! It would make more sense for them to set a longer extension, instead of having to revisit this topic at the last minute each year. But, oh the politics!
Some of the popular tax breaks that were extended for 2014 include:
Educator Expense- up to $250
Deduction of PMI (Private Mortgage Insurance)
Deduction of State Sales Tax in lieu of State Income Tax
Mortgage Debt Forgiveness
Tax-Free Distributions from an IRA for Charitable Purposes
Increased Section 179 Expense Limits
2015 Standard Mileage Rates
2015- Standard Mileage Rates
(cents per mile for 2015 Tax Returns)
Business 57.5
Medical/Moving 23
Charitable 14
Education Credits – Items Needed
Educational Credits – Items Needed
Educational Credits can be confusing. Here is a list to help you gather the information you will need to bring to figure the credit properly:
Students need a 1098T from each school attended. Printing this out from the school’s website is usually best because it often contains more details.
This can also sometimes be printed from 1098t.com for just the form.
Also, it is best to bring a print out of the school account statements showing charges (tuition, fees, room & board, other expenses) and credits (scholarships, grants, payments, adjustments, etc.) for each term/semester attended (Spring, Summer, Fall (current tax year) and Spring (next year)) because sometimes this is included and/or has adjustments needed to calculate the credit properly. This is usually available on the school’s website. Even if you do not receive a 1098T, this statement is still necessary.
Also, the amount spent for book and supplies (calculator, specific software, art supplies, etc.) required for classes during the current tax year are needed. It is best to keep receipts.
Out-of-pocket expenses include those paid for with a student loan or paid by another person for the student, such as by a parent or grandparent.
Note if any of the scholarships or grants received are for a specified use- ex. books, room & board, etc. Scholarships received/used for room & board are taxable to the student.
It is also important to know what years the American Opportunity Credit or Hope Credit have previously been claimed for the student.
Also, bring information for any student loan interest paid or distributions received from an Educational Savings Plan.
2014 Standard Mileage Rates
2014- Standard Mileage Rates
(cents per mile for 2014 Tax Returns)
Business 56
Medical/Moving 23.5
Charitable 14
2013 Standard Mileage Rates
2013- Standard Mileage Rates
(cents per mile for 2013 Tax Returns)
Business 56.5
Medical/Moving 24
Charitable 14
Individual Insurance Mandate Set To Take Effect In 2014
Effective January 1, 2014, the Affordable Care Act requires that most U.S. Citizens, subject to some limited exceptions (including grandfathered health plans, Medicare, Medicaid, & health care sharing plans), have health insurance or face a penalty. The penalty is calculated as the greater of a preset applicable dollar amount or a percentage of household adjusted gross income, and is set to increase each year. The individual mandate is scheduled to take effect in spite of a delay in the mandate that most larger businesses provide health insurance to their employees.
To learn more, visit www.irs.gov/aca
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