Income Taxes & Deadlines

Income Taxes in 2015: Breaking Down the Bracket Structure
The 2015 income tax rate in the USA and CANADA should be easy to figure out in theory. In practice, however, doing so is a complicated exercise.
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Taxes are levied on net taxable income, though a variety of deductions can ultimately reduce the amount of money that an individual or business is required to pay when their taxes are due.

Corporations general file in a similar way to individuals, but the bracket structure for corporate taxes is considerably different from that for individual taxpayers.income tax

Individuals Filing as a Single Person
Those who file as a single person without a spouse have the simplest tax structure. Their six brackets are:

  • Less than $9,225 pays 10 percent of taxable income
  • Between $9,225 and $37,350 pay $922.50 plus 15 percent in excess of the previous bracket
  • Between $90,750 and $189,750 pay $18,481.25 plus 28 percent of the excess over the previous bracket
  • Between $189,750 and $411,500 pay $46,075.25 plus 33 percent of the excess over the previous bracket
  • Between $411,500 and $413,200 pay $119,401.25 plus 35 percent of the excess over the previous bracket
  • Greater than $413,200 pay $119.996.25 plus 39.6 percent of the excess over the previous bracket

Married Filing Jointly

Those who are filing with their spouse are placed into a different set of brackets. They are:

  • Less than $18,450 pays 10 percent of the taxable income
  • Between $18,450 and $74,900 pay $1,845 plus 15 of the excess over the previous bracket
  • Between $74,900 and $151,200 pay $10,312.50 in addition to 25 percent of the excess over the previous bracket
  • Between $151,200 and $230,450 pay $29,387.50 in addition to 28 percent of the excess over the previous bracket
  • Between $230,450 and $411,500 pay $51,577.50 plus 33 percent of the excess over the previous bracket
  • Between $411,500 and $464,850 pay $111,324 plus 35 percent of the excess over the previous bracket
  • Greater than $464,850 pay $129,996.50 plus 39.6 percent of the excess over the previous bracket

Long-Term Capital Gains Taxes
People are often required to pay capital gains taxes regardless of whether they’re filing as a single individual or filing a joint return with a spouse. Those in the first two brackets of either category pay no long-term capital gains taxes. Those in the next four pay 15 percent of their long-term gains. Anyone in the highest will have to pay somewhere between 20-23.8 percent, depending on the type of gains that they’ve received.

Corporate Taxes
The IRS assesses a 39.1 percent tax on corporate profits, though businesses that lost money in previous years may be able to reduce this somewhat. They’ll also be responsible for state taxes much like individual taxpayers. These taxes are generally not based on bracket structures so much as they’re based on geographical location.

For instance, corporations in New York will have to pay a 7.1 percent corporate tax. Those in Florida will be responsible for a 5.5 percent tax. Businesses in Washington, Texas, Ohio, Virginia and Delaware will also be assessed a gross receipts tax in 2015.

2015 Deadlines
The tax deadline in Canada: the CRA tax deadline for self-employed persons in Canada to file their personal income tax return is April 30. In the US, the IRS Tax filing deadline for 2015 is Wednesday, April 15.