Many of you are getting your paperwork ready to file your 2015 tax returns but you may also want to review the latest tax brackets and standard deductions amounts for the upcoming 2016 tax year. This can give you a head start for the 2016 tax planning.
2016 TAX BRACKETS
INDIVIDUALS:
Over | But Not Over | Tax Rate |
---|
$0 | $9,275 | 10% |
$9,276 | $37,650 | 15% |
$37,651 | $91,150 | 25% |
$91,151 | $190,150 | 28% |
$190,151 | $413,350 | 33% |
$413,351 | $415,050 | 35% |
$415,051 | And over | 39.6% |
HEAD OF HOUSEHOLD
Over | But Not Over | Tax Rate |
---|
$0 | $13,250 | 10% |
$13,251 | $50,400 | 15% |
$50,401 | $130,150 | 25% |
$130,151 | $210,800 | 28% |
$210,801 | $413,350 | 33% |
$413,351 | $441,000 | 35% |
$441,001 | And over | 39.6% |
MARRIED FILING JOINTLY
Over | But Not Over | Tax Rate |
---|
$0 | $18,550 | 10% |
$18,551 | $75,300 | 15% |
$75,301 | $151,900 | 25% |
$151,901 | $231,450 | 28% |
$231,451 | $413,350 | 33% |
$413,351 | $466,950 | 35% |
$466,951 | And over | 39.6% |
MARRIED FILING SEPARATELY
Over | But Not Over | Tax Rate |
---|
$0 | $9,275 | 10% |
$9,276 | $37,650 | 15% |
$37,651 | $75,950 | 25% |
$75,951 | $115,725 | 28% |
$115,726 | $206,675 | 33% |
$206,676 | $233,475 | 35% |
$233,476 | And over | 39.6% |
The IRS has also released its standard deductions chart for 2015. Everyone who pays taxes will get a small increase in their standard deduction amount.
STANDARD DEDUCTIONS
Filing Status | Standard Deduction Amount |
---|
Single | $6,300 |
Married Filing Jointly | $12,600 |
Married Filing Separately | $6,300 |
Head of Household | $9,300 |
Surviving Spouse | $12,600 |
There are some important changes in the 2016 tax code!
- New Limit For Earned Income Credit = $6,269 for those who have 3 or more qualifying children in 2016 (Married Filing Jointly)
- Had a Foreign Income = The foreign earned income exclusion is $101,300 for 2016.
- Personal Exemption = $4,050 for this year. Alternative Minimum Tax (AMT) exemption amount is $83,300 (Married Filing Jointly) and $53,900 for singles.