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WHAT'S NEW

Fee Increase

The fee is increasing for 2016. For 2015, the penalty for no health insurance is $325 per person or 2% of your annual household income - whichever is higher. For 2016, the fee is $695 or 2.5% of your income - whichever is higher. For many people, that's more than the yearly cost of health plans they can find on HealthCare.gov.

 

Single 2016 Tax Brackets

Taxable Income Tax Bracket:
$0-$9,275 10%
$9,276-$37,650 15%
$37,651-$91,150 25%
$91,151-$190,150 28%
$190,151-$413,350 33
$413,351-$415,050 35%
$415,051+ 39.6%

 

Married Filing Jointly 2016 Tax Brackets

Taxable Income Tax Bracket:
$0-$18,550 10%
$18,551-$75,300 15%
$75,301-$151,900 25%
$151,901-$231,450 28%
$231,451-$413,350 33
$413,351-$466,950 35%
$466,951+ 39.6%

 

Head of Household 2016 Tax Brackets

Taxable Income Tax Bracket:
$0-$13,250 10%
$13,251-$50,400 15%
$50,401-$130,150 25%
$130,151-$210,800 28%
$210,801-$413,350 33
$413,351-$441,000 35%
$441,001+ 39.6%

 

Married Filing Separately 2016 Tax Brackets

Taxable Income Tax Bracket:
$0-$9,275 10%
$9,276-$37,650 15%
$37,651-$75,950 25%
$75,951-$115,725 28%
$115,726-$206,675 33
$206,676-$233,475 35%
$233,476+ 39.6%

 

2016 Standard Deductions & Exemptions*

Taxpayers who do not itemize their deductions are entitled to a standard deduction. The amount of the standard deduction varies according to the taxpayer's filing status.

2016 Standard Deduction

Married, Filing Jointly $12,600
Single $6,300
Married, Filing Separately $6,30
Head of Household $9,300
Blind or over 65 and married - add: $1,250
Blind or over 65 and single/head of household - add: $1,550

 

Individuals are entitled to a personal exemption amount.

 

2016 Exemption Amount

2016 Personal Exemption $4,050
Itemized Deduction/Personal Exemption Phaseout
Married, Filing Jointly $311,300
Single $259,400
Married, Filing Separately $155,650
Head of Household $285,350

 

Earned Income and AGI Limits

Earned income and adjusted gross income (AGI) must each be less than:

If filing... Qualifying Children Claimed
Zero One Three Tree or more
Single, Head of Household or Widowed $14,880 $39,296 $44,648 $47,955
Married Filing Jointly $20,430 $44,846 $50,198 $53,505

Investment Income Limit

Investment income must be $3,400 or less for the year.

Maximum Credit Amounts

The maximum amount of credit for Tax Year 2016 is:

  • $6,269 with three or more qualifying children
  • $5,572 with two qualifying children
  • $3,373 with one qualifying child
  • $506 with no qualifying children

For more information go to - irs.gov

 

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