U.S. Tax Guide®

KEY FIGURES FOR THE 2016 TAX YEAR

STANDARD DEDUCTIONS

Married, Filing Joint Return (and Surviving Spouse)

$

12,600

Head of Household

$

9,300

Unmarried (Not Surviving Spouse or Head of Household)

$

6,300

Married, Filing Separate Return

$

6,300

Dependent Standard Deduction (Minimum)

$

1,050

Additional Amount for Blindness or Age

$

1,250

Additional Amount as Above if Unmarried and Not S.S.

$

1,550

ITEMIZED DEDUCTIONS

Phaseout of Itemized Deductions (AGI Threshold Starts)

 

 

Married, Filing Joint Return (and Surviving Spouse)

$

311,300

Head of Household

$

285,350

Unmarried (Not Surviving Spouse or Head of Household)

$

259,400

Married, Filing Separate Return

$

155,650

Nonbusiness Casualty Loss (AGI Threshold)

 

10%

Medical Deduction (AGI Threshold)

Taxpayers, Generally

 

10%

Taxpayer or Spouse, Age 65 and Older

 

7.5%

Miscellaneous Itemized Deduction (AGI Threshold)

 

2%

EXEMPTIONS

Personal and Dependent Amount

$

4,050

Phaseout of Exemptions (AGI Threshold Starts)

Married, Filing Joint Return (and Surviving Spouse)

$

311,300

Head of Household

$

285,350

Unmarried (Not Surviving Spouse or Head of Household)

$

259,400

Married, Filing Separate Return

$

155,650

EDUCATION PROVISIONS

American Opportunity (Modified Hope) Credit

$

2,500

Lifetime Learning Credit

$

2,000

Coverdell Education Savings Account Contribution

$

2,000

Student Loan Interest Deduction

$

2,500

Phaseout of U.S. Savings Bond Interest Exclusion (MAGI Threshold Starts)

Married, Filing Joint Return

$

116,300

Unmarried, Surviving Spouse, or Head of Household

$

77,550

ALTERNATIVE MINIMUM TAX (AMT)

Excess Taxable Income Threshold for 28% Rate

 

 

Individuals, Estates, and Trusts, Generally

$

186,300

Married, Filing Separate Return

$

93,150

Exemption Amounts

Married, Filing Joint Return (and Surviving Spouse)

$

83,800

Unmarried and Head of Household (not Surviving Spouse)

$

53,900

Married, Filing Separate Return

$

41,900

Estate and Trust

$

23,900

Phaseout of AMT Exemption (AMTI Threshold Starts)

 

 

Married, Filing Joint Return (and Surviving Spouse)

$

159,700

Unmarried and Head of Household (not Surviving Spouse)

$

119,700

Married, Filing Separate Return

$

79,850

Estate and Trust

$

79,850

NET INVESTMENT INCOME

Additional Tax on Net Investment Income of High-Income Taxpayers

 

3.8%

NET CAPITAL GAINS AND QUALIFIED DIVIDENDS

Taxpayers in 10% or 15% Income Tax Bracket

 

0%

Taxpayers in 25%, 28%, 33% or 35% Income Tax Bracket

 

15%

Taxpayers in 39.6% Income Tax Bracket

 

20%

Unrecaptured Gain on Real Estate (Section 1250 gain)

 

25%

Collectibles and Qualified Small Business Stock

 

28%

ESTATE AND GIFT TAXES

Estate & Gift Basic Exclusion Amount

$

5,450,000

Annual Gift Tax Exclusion (Per Donee)

$

14,000

Maximum Estate & Gift Tax Rate

 

40%

CODE SEC. 179 EXPENSE ALLOWANCE

Maximum Deduction

$

500,000

Investment Limitation

$

2,010,000

PAYROLL TAXES

FICA or Self-Employed Combined Rate (OASDI + Medicare)

 

15.3%

FICA (Employer or Employee) Rate (OASDI + Medicare)

 

7.65%

OASDI (Employer or Employee) Rate

 

6.2%

OASDI Maximum Base

$

118,500

Medicare (Employer and Employee) Rate

 

1.45%

Additional Medicare Rate (High-Income Employees and Self-Employed)

 

0.9%

FUTA Rate

 

6.0%

FUTA Wage Base

$

7,000

Nanny Tax Threshold

$

2,000

RETIREMENT/PENSION PLANS

Maximum Elective Deferral to 401(k), 403(b), 457, and Thrift Plans

$

18,000

Maximum Elective Deferral to SIMPLE 401(k) and SIMPLE IRA Plans

$

12,500

Maximum Contribution Limit to Traditional and Roth IRAs

$

5,500

Catch-Up Contributions Limits (For Individuals Age 50 and Over)

 

 

401(k), 403(b), 457, and Thrift Plans

$

6,000

SIMPLE 401(k) and SIMPLE IRA Plans

$

3,000

Traditional and Roth IRAs

$

1,000

Limit on Annual Additions to Defined Contribution Plans and SEPs

$

53,000

Annual Compensation Limit for Determining Contributions

$

265,000

SEP Minimum Compensation Amount

$

600

Limit on Annual Benefits Under Defined Benefit Plans

$

210,000

Highly Compensated Employee Threshold

$

120,000

HEALTH CARE

Health Savings Account (HSA) Contribution Limit

 

 

Self-Only Coverage

$

3,350

Family Coverage

$

6,750

Health Flexible Savings Account (FSA) Contribution Limit

$

2,550

TRANSPORTATION

Business Mileage Rate

 

54¢

Medical and Moving Mileage Rate

 

19¢

Charitable Mileage Rate

 

14¢

Depreciation Component of Standard Mileage Rate

 

24¢

High/Low Cost Locality Per Diem Travel Rates (after 9/30/15)

High: $275 / Low: $185

High/Low Cost Locality Per Diem Travel Rates (after 9/30/16)

High: $282 / Low: $189