2016 Federal Individual Tax Rates

Each year the IRS adjusts the tax provisions to account for inflation.  For the tax year 2016, the income limits for all brackets are adjusted as follows:

Rate Single Filers Married Joint Filers Head of Household Filers

10%

$0 to $9,275 $0 to $18,550 $0 to $13,250

15%

$9,275 to $37,650 $18,550 to $75,300 $13,250 to $50,400

25%

$37,650 to $91,150 $75,300 to $151,900 $50,400 to $130,150

28%

$91,150 to $190,150 $151,900 to $231,450 $130,150 to $210,800

33%

$190,150 to $413,350 $231,450 to $413,350 $210,800 to $413,350

35%

$413,350 to $415,050 $413,350 to $466,950 $413,350 to $441,000

39.6%

$415,050+ $466,950+ $441,000+

Standard Deduction and Personal Exemption

The personal exemption for 2016 is $4,050

Filing Status Deduction Amount
Single  $6,300.00
Married Filing Jointly  $12,600.00
Head of Household  $9,300.00
Personal Exemption  $4,050.00

PEP and Pease Provisions

The PEP and Pease provisions are designed to increase taxable income to high-earning individuals and households.  The Pease limitations effect itemized deductions while PEP phases out the personal exemption.  The income threshold for when these effect taxpayers are $259,400 for single filers and $311,300 for married filers.

Pease Limitations on Itemized Deductions
Filing Status Income
Single  $259,400.00
Married Filing Jointly  $311,300.00
Head of Household  $285,350.00

 

Personal Exemption Phase-Out
Filing Status Phase-Out Begin Phase-Out Complete
Single  $259,400.00  $381,900.00
Married Filing Jointly  $311,300.00  $433,800.00
Head of Household  $285,350.00  $407,850.00

Alternative Minimum Tax (AMT)

The Alternative Minimum Tax (AMT) exemption has been indexed for inflation since 2012.  The current threshold is $53,900 for singles and $83,800 for married couples filing jointly.

Alternative Minimum Tax Exemptions (Estimate)
Filing Status Exemption Amount
Single  $            53,900.00
Married Filing Jointly  $            83,800.00
Married Filing Separately  $            41,900.00

Earned Income Tax Credit

2016 Earned Income Tax Credit Parameters (Estimate)
Filing Status   No Children One Child Two Children Three or More Children
Single or Head of Household Income at Max Credit

$6,610

$9,920

$13,930

$13,930

Maximum Credit

$506

$3,373

$5,572

$6,268

Phase out Begins

$8,270

$18,190

$18,190

$18,190

Phase out Ends (Credit Equals Zero)

$14,880

$39,296

$44,648

$47,955

Married Filing Jointly Income at Max Credit

$6,610

$9,920

$13,930

$13,930

Maximum Credit

$506

$3,373

$5,572

$6,268

Phase out Begins

$13,810

$23,730

$23,730

$23,730

Phase out Ends (Credit Equals Zero)

$20,420

$44,836

$50,188

$53,495

 

If you have any questions, please e-mail or call us, we would welcome the opportunity to help you minimize your taxes.