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AFSA NEWS

CALENDAR

THE OFFICIAL RECORD OF THE AMERICAN FOREIGN SERVICE ASSOCIATION

Federal and State Tax Provisions

for the Foreign Service

THE FOREIGN SERVICE JOURNAL

|

JANUARY-FEBRUARY 2016

61

January 6

12-2 p.m.

AFSA Governing

Board Meeting

January 15

Deadline: Sinclaire

Language Award

Nominations

January 18

Martin Luther King Day:

AFSA Offices Closed

February 3

12-2 p.m.

AFSA Governing

Board Meeting

February 6

Deadline: Community

Service and Art/Academic

Merit Awards

February 15

Presidents Day:

AFSA Offices Closed

February 17

12-1:30 p.m.

Luncheon:

185th A-100 Class

February 18

2-3:30 p.m.

AFSA Book Notes:

Foreign Policy

Breakthroughs

February 28

Deadline: AFSA Dissent

& Performance Award

Nominations

March 6

Deadline:

AFSA Financial Aid

Scholarship Applications

The American Foreign

Service Association’s annual

Tax Guide is designed as an

informational and refer-

ence tool. Although we try

to be accurate, many of the

new provisions of the tax

code and the implications

of Internal Revenue Service

regulations have not been

fully tested. Therefore, use

caution and consult with

a tax adviser as soon as

possible if you have specific

questions or an unusual or

complex situation.

Foreign Service employees

most frequently ask AFSA

about home ownership, tax

liability upon sale of a resi-

dence and state of domicile.

We have devoted special sec-

tions to these issues.

James Yorke (YorkeJ@

state. gov), who compiles the

tax guide, would like to thank

M. Bruce Hirshorn, Foreign

Service tax counsel, for his

help in its preparation.

FEDERAL TAX

PROV I SONS

For 2015, the six tax rates

for individuals remain at 10,

15, 25, 28, 33, 35 and 39.6

percent.

CREATEDBYJEFFLAU

The 10-percent rate is

for taxable income up to

$18,451 for married couples,

$9,226 for singles. The

15-percent rate is for income

up to $74,901 for married

couples, $37,451 for singles.

The 25-percent rate is for

income up to $151,201 for

married couples, $90,751 for

singles. The 28-percent rate

is for income up to $230,451

for married couples and up

to $189,301 for singles. The

33-percent rate is for income

up to $411,501 for married

couples and singles. Annual

income above $411,501 is

taxed at 35 percent. Income

above $464,851 for married

couples and above $413,201

for singles is taxed at 39.6

percent.

Although long-term

capital gains are taxed at a

maximum rate of up to 15

percent and are reported

on form Schedule D, mar-

ried taxpayers with income

greater than $464,851 and

singles greater than $413,201

pay a capital gains rate of

20 percent. These rates are

effective for all sales in 2015,

PLEASE NOTE

This guidance applies to the 2015 tax year, for returns

due on April 18, 2016. While correct at press time, bear in

mind there may be changes to the tax code for the 2016

tax year. At present, however, we are not aware of any pos-

sible changes that are likely to apply to 2015.

Continued on p. 69

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