pThe following 2016 information is an update of the “Preview Of Some Key 2016 Tax Figures” article originally published last October (2015). The October 2015 publication was presented using estimated figures for 2016./ppHowever, the IRS has recently released official 2016 tax figures. This being the case, what better time is there to start thinking about implementing a tax planning initiative focused on tax year 2016 activity? The following up-to-date figures will assist you with that initiative:/ph3Tax Brackets For Taxable Years Beginning in 2016 (Per Rev. Proc. 2015-53):/h3h4TABLE 1 - Married Individuals Filing Joint Returns and Surviving Spouses/h4pstrongIf Taxable Income Is: The Tax Is:/strong/ppNot over $18,550 10% of the taxable income/ppbrOver $18,550 but $1,855 plus 15% ofbrnot over $75,300 the excess over $18,550brbr/ppOver $75,300 but $10,367.50 plus 25% ofbrnot over $151,900 the excess over $75,300/ppstrong /strong/ppOver $151,900 but $29,517.50 plus 28% ofbrnot over $231,450 the excess over $151,900/ppstrong /strong/ppOver $231,450 but $51,791.50 plus 33% ofbrnot over $413,350 the excess over $231,450/ppstrong /strong/ppOver $413,350 but $111,818.50 plus 35% ofbrnot over $466,950 the excess over $413,350/ppbrOver $466,950 $130,578.50 plus 39.6% ofbr the excess over $466,950/pp/ph4TABLE 2 – Heads of Households/h4pstrongIf Taxable Income Is: The Tax Is:/strong/ppNot over $13,250 10% of the taxable income/pp /ppOver $13,250 but $1,325 plus 15% ofbrnot over $50,400 the excess over $13,250/pp /ppOver $50,400 but $6,897.50 plus 25% ofbrnot over $130,150 the excess over $50,400/pp /ppOver $130,150 but $26,835 plus 28% ofbrnot over $210,800 the excess over $130,150/pp /ppOver $210,800 but $49,417 plus 33% ofbrnot over $413,350 the excess over $210,800/pp /ppOver $413,350 but $116,258.50 plus 35% ofbrnot over $441,000 the excess over $413,350/pp /ppOver $441,000 $125,936 plus 39.6% ofbr the excess over $441,000/ph4TABLE 3 – Unmarried Individuals (other than Surviving Spouses and Heads of Households)/h4pstrongIf Taxable Income Is: The Tax Is:/strong/ppNot over $9,275 10% of the taxable income/ppstrong /strong/ppOver $9,275 but $927.50 plus 15% ofbrnot over $37,650 the excess over $9,275/ppstrong /strong/ppOver $37,650 but $5,183.75 plus 25% ofbrnot over $91,150 the excess over $37,650/ppstrong /strong/ppOver $91,150 but $18,558.75 plus 28% ofbrnot over $190,150 the excess over $91,150/ppstrong /strong/ppOver $190,150 but $46,278.75 plus 33% ofbrnot over $413,350 the excess over $190,150/ppstrong /strong/ppOver $413,350 but $119,934.75 plus 35% ofbrnot over $415,050 the excess over $413,350/ppstrong /strong/ppOver $415,050 $120,529.75 plus 39.6% ofbr the excess over $415,050/pp /ph4TABLE 4 – Married Individuals Filing Separate Returns/h4pstrongIf Taxable Income Is: The Tax Is:/strong/pp/ppNot over $9,275 10% of the taxable income/ppstrong /strong/ppOver $9,275 but $927.50 plus 15% ofbrnot over $37,650 the excess over $9,275/ppstrong /strong/ppOver $37,650 but $5,183.75 plus 25% ofbrnot over $75,950 the excess over $37,650/ppstrong /strong/ppOver $75,950 but $14,758.75 plus 28% ofbrnot over $115,725 the excess over $75,950brbr/pp/ppOver $115,725 but $25,895.75 plus 33% ofbrnot over $206,675 the excess over $115,725/pp/pp/ppOver $206,675 but $55,909.25 plus 35% ofbrnot over $233,475 the excess over $206,675/pp/pp/ppOver $233,475 $65,289.25 plus 39.6% ofbr the excess over $233,475/ph4TABLE 5 – Estates and Trusts/h4pstrongIf Taxable Income Is: The Tax Is:/strong/ppNot over $2,550 15% of the taxable income/ppOver $2,550 but $382.50 plus 25% ofbrnot over $5,950 the excess over $2,550/ppOver $5,950 but $1,232.50 plus 28% ofbrnot over $9,050 the excess over $5,950/ppOver $9,050 but $2,100.50 plus 33% ofbrnot over $12,400 the excess over $9,050/ppOver $12,400 $3,206 plus 39.6% ofbr the excess over $12,400/ppstrongPersonal Exemption:/strong $4,050 in 2016 ($4,000 in 2015)/ppstrongStandard Deductions:/strong/ppstrongDeduction Tax Year 2016 Tax Year 2015/strong/ppemSingle/em $6,300 $6,300bremHead of Household/em $9,300 $9,250bremMarried Filing Joint/em $12,600 $12,600bremMarried Filing Separately/em $6,300 $6,300/ppemDependents (claimed on/em $1,050 $1,050bremanother’s return)/em/ppem65 or Blind: Married or Single/em Add $1,250 Add $1,250br Add $1,550 Add $1,550/ppstrongOther Key figures:/strong/ppemEstate Gift Tax Exclusion/em $5.45 Million $5.43 MillionbremAnnual Gift Tax Exclusion/em $14,000 $14,000bremRoth and Traditional IRA Contribution/em $5,550 $5,500/ppstrongLIMIT/strongbremExclusion from tax on a gift to a spouse/em $148,000 $147,000bremwho is not a U.S. citizen/em/ppemForeign earned income exclusion/em $101,300 $100,800/ppemPhase in limitation for itemized/em $311,300 $309,900bremdeductions to be claimed on returns of/embremindividuals - Married/em/ppemThe annual dollar limit on employee/em $2,550 $2,550bremcontributions to employer-sponsoredbrhealthcare flexible spendingbrarrangements (FSA)./em/ppem /em/ppemstrongRefer to IRC.gov (various) and Rev. Proc. 2015-53 for additional details concerning 2016 rates./strong/em/p
Category:
Tax Planning
Posted on
February 25, 2016