Tax Brackets

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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.

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2015 Federal Income Tax Brackets

Below are the federal income tax brackets for 2015.  These are the rates that you will use to prepare your taxes for 2015.  The 2016 tax rates will be added later.

Don’t forget, individual returns are due by the 15th of April.

Individuals / Single
When taxable income is between: The tax due is:
0 – 9,225 10% of taxable income
9,226 – 37,450 $922.50 + 15% of the amount over 9,225
37,451 – 90,750 $5,156.25 + 25% of the amount over 37,450
90,751 – 189,300 $18,481.25 + 28% of the amount over 90,750
189,301 – 411,500 $46,075.25 + 33% of the amount over 189,300
411,501 – 413,200 $119,401.25 + 35% of the amount over 411,500
413,201 + $119,996.25 + 39.6% of the amount over 413,200

 

Married Filing Jointly and Surviving Spouse
When taxable income is between: The tax due is:
0 – 18,450 10% of taxable income
18,451 – 74,900 $1,845 + 15% of the amount over 18,450
74,901 – 151,200 $10,312.50 + 25% of the amount voer 74,900
151,201 – 230,450 $29,387.50 + 28% of the amount over 151,200
230,451 – 411,500 $51,577.50 + 33% of the amount over 230,450
411,501 – 464,850 $111,324 + 35% of the amount over 411,500
464,850 + $129,996.50 + 29.6% of the amount over 464,850

 

Married Filing Separately
When taxable income is between: The tax due is:
0 – 9,225 10% of taxable income
9,226 – 37,450 $922.50 + 15% of the amount over $9,225
37,451 – 75,600 $5,165.25 + 25% of the amount over $37,450
75,601 – 115,225 $14,693.75 + 28% of the amount over $75,600
115,226 – 205,750 $25,788.75 + 33% of the amount over $115,225
205,751 – 232,425 $55,662 + 35% of the amount over 205,750
232,425 + $64,998.25 + 39.6% of the amount over $232,425

 

Head of Household
When taxable income is between: The tax due is:
0 – 13,150 10% of taxable income
13,151 to 50,200 $1,315 + 15% of the amount over 13,150
50,201 – 129,600 $6,872.50 + 25% of the amount over 50,200
129,601 – 209,850 $26,772.50 + 28% of the amount over 129,600
209,851 – 411,500 $49,192.50 + 33% of the amount over 209,850
411,501 – 439,000 $115,737 + 35% of the amount over 411,500
439,001 + $125,362 + 39.6% of the amount over 439,000
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2013 Federal Income Tax Rates

These are the 2013 Federal income tax brackets you will be using to prepare your taxes.  The personal exemption is $3,900 for 2013.   The standard deductions are listed with the title to each table.

Single (Standard Deduction $6,100)
Single2013

Married Filing Jointly (Standard Deduction $12,200)
MFJ2013

Married Filing Separately (Standard Deduction $6,100)
MFS2013

Head of Household (Standard Deduction $8,950)
HoH2013