2016 YEAR-END
TAX GUIDE
2016 Tax Reference Tables



AMT Exemption

AMT Exemption 2016
Married FIling Jointly $83,800
Married FIling Seperately $41,900
Single $53,900

 

2016 Corporate Tax Rates

OVER BUT NOT OVER THE TAX IS OF THE AMOUNT OVER
$--- $50,000 15% $---
$50,000 $75,000 $7,500 + 25% $50,000
$75,000 $100,000 $13,750 + 34% $75,000
$100,000 $335,000 $22,250 + 39% $100,000
$335,000 $10,000,000 $113,900 + 34% $335,000
$10,000,000 $15,000,000 $3,400,000 + 35% $10,000,000
$15,000,000 $18,333,333 $5,150,000 + 38% $15,000,000
$18,333,333 --- 35% ---

 

Inflation/Cost of Living Tax Update

TAX BENEFIT 2016
Personal/Dependent Exemption $4,050
STANDARD DEDUCTION  
Married FIling Joint $12,600
Single $6,300
Married FIling Separately $6,300
Head of Household $9,300
Maximum Earned Income Tax Credit for Low/Moderate Income Workers $9,300
Foreign Earned Income Exclusion $101,300
Maximum Taxable Social Security Earnings Base $118,500

 

Inflation/Cost of Living Tax Updates for Itemized Deductions

Subject to limitations, certain itemized deductions are phased out once Adjusted Gross Income (AGI) exceeds certain thresholds:

FILING STATUS AGI THRESHOLD FOR PEASE LIMITATION 2016
MARRIED FILING JOINTLY $311,300
MARRIED FILING SEPERATELY $155,650
SINGLE $259,400
HEAD OF HOUSEHOLE $285,350

 

2016 Individual Income Tax Rates

RATE SINGLE HEAD OF HOUSHOLD MARRIED-JOINT MARRIED-SEPARATE
10% $0 - $9,275 $0 – $13,250 $0 - $18,550 $0 – $9,275
15% $9,275 - $37,650 $13,250 - $50,400 $18,550 - $75,300 $9,275 - $37,650
25% $37,650 - $91,150 $50,400 - $130,150 $75,300 - $151,900 $37,650 - $75,950
28% $91,150 - $190,150 $130,150 - $210,800 $151,900 - $231,450 $75,950 - $115,725
33% $190,150 - $413,350 $210,800 - $413,350 $231,450 - $413,350 $115,725 - $206,675
35% $413,350 - $415,050 $413,350 - $441,000 $413,350 - $466,950 $206,675 - $233,475
39.6% Over $415,050 Over $441,000 Over $466,950 Over $233,475

 

Taxable Income Threshold

FILING STATUS 20% RATE FOR LONG-TERM CAPITAL GAIN AND QUALIFIED DIVIDENS
MARRIED FILING JOINTLY $466,950
HEAD OF HOUSEHOLE $441,000
SINGLE $415,050
MARRIED FILING SEPERATELY $233,475
TRUST & ESTATES $12,400

 

Dollar Limits for Retirement Plans

PLAN TYPES 2016 LIMITS
Defined contribution plans $53,000
Defined benefit plans $265,000
Deferred contribution plans - 401(k), 403(b) and 457 plans: Under age 50
Age 50 and older
$18,000
$24,000
Simple plans: Under age 50
Age 50 and older
$12,500
$15,500
IRA, traditional and Roth: Under age 50
Age 50 and older
IRA AGI Phase-Out (married)
IRA AGI Phase-Out (single/HOH)
$5,500
$6,500
$98,000
$61,000
OTHER THRESHOLDS 2016 LIMITS
SEP Annual compensation limit
$265,000
Key employee in a top-heavy plan
$170,000
Highly compensated employee $120,000
2016 Social Security Wage Base $118,500
2017 Social Security Wage Base $127,200
2016 & 2017 Nanny Renumeration $2,000

 

2016 Estates and Trusts Tax Rates

OVER BUT NOT OVER THE TAX IS OF THE AMOUNT OVER
$ --- $2,550 15% $ ---
$2,550 $5,950 $382.50 + 25% $2,550
$5,950 $9,050 $1,232.50 + 28% $5,950
$9,050 $12,400 $2,100.50 + 33% $9,050
$12,400 --- $3,206.00 + 39.6% $12,400

 

Gift & Estate Tax Exemption

  2012 2013 2014 2015 2016
GIFT TAX EXEMPTION $5,120,000 $5,250,000 $5,340,000 $5,430,000 $5,450,000
ESTATE TAX EXEMPTION $5,120,000 $5,250,000 $5,340,000 $5,430,000 $5,450,000
GST TAX EXEMPTION $5,120,000 $5,250,000 $5,340,000 $5,430,000 $5,450,000
HIGHEST ESTATE & GIFT TAX RATES 35% 40% 40% 40% 40%