2014 & 2015 Tax Facts
- For 2014, the standard deduction for a single individual is $6,200 and for a married couple is $12,400. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses.
- For 2014, the personal exemption is $3,950. Individuals will claim a personal deduction for themselves, their spouse, and their dependents.
- The maximum earnings subject to social security taxes is $118,500 for 2015, up from $117,000 in 2014.
- The standard mileage rate is $.575 per business mile as of January 1, 2015, up from $.56 for 2014.
- The maximum annual salary deferral into a 401(k) plan or a 403(b) plan is $18,000 in 2015, up from $17.5k in 2014. And if you'll be 50 or older by December 31st, you can contribute an extra $6,000 into your 401(k) or 403(b) account this year, up from $5,500 last year.
- The maximum annual contribution to your IRA is $5,500 for 2014 and 2015. And if you turn 50 by December 31st, you can contribute an extra $1,000 that year. You have until April 15, 2015 to make your 2014 IRA contributions.