2016 Tax Rates – Plan Ahead To Save

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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:

OverBut Not OverTax Rate
$0$9,27510%
$9,276$37,65015%
$37,651$91,15025%
$91,151$190,15028%
$190,151$413,35033%
$413,351$415,05035%
$415,051And over39.6%

 HEAD OF HOUSEHOLD

OverBut Not OverTax Rate
$0$13,25010%
$13,251$50,40015%
$50,401$130,15025%
$130,151$210,80028%
$210,801$413,35033%
$413,351$441,00035%
$441,001And over39.6%

 MARRIED FILING JOINTLY

OverBut Not OverTax Rate
$0$18,55010%
$18,551$75,30015%
$75,301$151,90025%
$151,901$231,45028%
$231,451$413,35033%
$413,351$466,95035%
$466,951And over39.6%

 MARRIED FILING SEPARATELY

OverBut Not OverTax Rate
$0$9,27510%
$9,276$37,65015%
$37,651$75,95025%
$75,951$115,72528%
$115,726$206,67533%
$206,676$233,47535%
$233,476And over39.6%

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 StatusStandard 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.

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