2015 Tax Changes
January 15, 2015
Social Security Wage Base for 2015: The Social Security Administration announced that the maximum earnings subject to the Social Security component of the FICA tax will increase to $118,500 in 2015 from $117,000 in 2014. This means, that for 2015, the maximum Social Security tax that employers and employees will each pay is $7,347 ($118,500 x 6.2%), and a self-employed person with at least $118,500 in net selfemployment earnings will pay $14,694 for the Social Security part of the self-employment tax. The Medicare component remains 1.45% of all earnings, and individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) will pay an additional 0.9% in Medicare taxes.
HSA Limits: Annual ceilings on deductible payins to health savings accounts increase a little for 2014. The maximums are $6,650 for account owners with family medical coverage and $3,350 for single coverage. HSA owners born before 1961 can put in $1,000 more. Minimum policy deductibles increase to $2,600 for families and $1,300 for individuals.
Retirement Plan Limits: The maximum 401(k) contribution increases to $18,000. Individuals born before 1966 can put in as much as $24,000. The contribution limits apply to 403(b) and 457 plans as well. The ceiling on SIMPLEs remain at $12,500. Folks age 50 or older in 2014 can put in an additional $3 ,000. The 2014 payin limits for IRAs and Roth IRAs remains at $5,500. Those 50 or older can put in an extra $1,000.
Mileage: The standard mileage allowance for business driving is 57.5 cents per mile, an increase of 1.5 cents from the 2014 rates. The allowance lowers to 23.0 cents a mile for travel for medical purposes and job-related moves, a decrease of one-half cent from the 2014 rates. But the rate for charitable driving remains the same at 14 cents a mile.
This is for informational purposes only and should not be construed as tax advice. Consult your tax advisor regarding your specific situation.
Securities offered through Sigma Financial Corporation, member FINRA/SIPC. Investment Advisory services offered through SPC, a Registered Investment Advisor. Sanders & Bales Financial Services is independent of Sigma and/or SPC.