The chart below details some of the various factors that can impact a taxpayer's marginal tax rate, including both ordinary income tax brackets and the Alternative Minimum Tax (AMT), the tax treatment of long-term capital gains and qualified dividends, the payroll taxes that apply to earned income for wage employees and the self-employed, the new 0.9% (on earned income) and 3.8% (on net investment income) Medicare surtaxes, and the impact of various phaseouts including the Personal Exemption Phaseout (PEP), phaseout of itemized deductions (Pease), and the AMT exemption phaseout.

This chart was originally produced for the November/December 2012 issue of The Kitces Report newsletter for subscribers, and has been updated for 2015.

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Michael E. Kitces

I write about financial planning strategies and practice management ideas, and have created several businesses to help people implement them.

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Wednesday, April 15th, 2015

*Expanding the Framework of Safe Withdrawal Rates *Setting a Proper Asset Allocation Glidepath in Retirement @ AICPA

Thursday, April 16th, 2015

*Evaluating Existing Life Insurance Policies @ Private Event

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*Trusts as Beneficiaries of IRAs @ Private Event

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