While the official numbers have not yet been published by the Internal Revenue Service, we’ve projected many of the key figures for 2016. When the official numbers are released, we’ll send an update with an associated Client Alert.
| Exemptions |
|
2015 |
Projected for 2016 |
| Personal and dependency |
$4,000 |
$4,050 |
| Phaseout threshold (applies to itemized deductions as well) |
| Married filing jointly |
$309,900 |
$311,300 |
| Head of household |
$284,050 |
$285,350 |
| Single |
$258,250 |
$259,400 |
| Married filing separately |
$154,950 |
$155,650 |
| Standard deduction |
|
2015 |
Projected for 2016 |
| Married filing jointly |
$12,600 |
$12,600 |
| Head of household |
$9,250 |
$9,300 |
| Single |
$6,300 |
$6,300 |
| Married filing separately |
$6,300 |
$6,300 |
| Standard deduction for dependent |
Greater of $1,050 or $350 + earned income |
Greater of $1,050 or $350 + earned income |
| Additional standard deduction for aged/blind |
| Single/ Head of household |
$1,550 |
$1,550 |
| All others |
$1,250 |
$1,250 |
| Top income tax bracket (39.6%, 20% for long-term capital gains and qualified dividends) |
|
2015 |
Projected for 2016 |
| Married filing jointly |
$464,850 |
$466,950 |
| Head of household |
$439,000 |
$441,000 |
| Single |
$413,200 |
$415,050 |
| Married filing separately |
$232,425 |
$233,475 |
| Alternative minimum tax (AMT) |
|
2015 |
Projected for 2016 |
| Maximum AMT exemption amount |
| Married filing jointly |
$83,400 |
$83,800 |
| Single/ Head of household |
$53,600 |
$53,900 |
| Married filing separately |
$41,700 |
$41,900 |
| Exemption phaseout threshold |
| Married filing jointly |
$158,900 |
$159,700 |
| Single/ Head of household |
$119,200 |
$119,700 |
| Married filing separately |
$79,450 |
$79,850 |
| 26% on AMTI* up to amount, 28% on AMTI above amount |
| Married filing separately |
$92,700 |
$93,150 |
| All others |
$185,400 |
$186,300 |
*Alternative minimum taxable income
| Kiddie tax: child’s unearned income |
|
2015 |
Projected for 2016 |
| Above this amount taxed at parent’s tax rate |
$2,100 |
$2,100 |
| IRAs |
|
2015 |
Projected for 2016 |
| Contribution limits |
| Traditional and Roth IRAs |
$5,500 ($6,500 if age 50 or older) |
$5,500 ($6,500 if age 50 or older) |
| Roth IRA income phaseout range (contributions) |
| Single/ Head of household |
$116,000 – $131,000 |
$117,000 – $132,000 |
| Married filing jointly |
$183,000 – $193,000 |
$184,000 – $194,000 |
| Married filing separately |
$0 – $10,000 |
$0 – $10,000 |
| Traditional IRA income phaseout range (deductibility) |
| 1. Covered by an employer-sponsored plan and filing as: |
| Single/ Head of household |
$61,000 – $71,000 |
$61,000 – $71,000 |
| Married filing jointly |
$98,000 – $118,000 |
$98,000 – $118,000 |
| Married filing separately |
$0 – $10,000 |
$0 – $10,000 |
| 2. Not covered by plan but filing joint return with covered spouse |
$183,000 – $193,000 |
$184,000 – $194,000 |
| Estate planning |
|
2015 |
Projected for 2016 |
| Top gift, estate, and generation-skipping transfer (GST) tax rate |
40% |
40% |
| Annual gift tax exclusion |
$14,000 |
$14,000 |
| Noncitizen spouse annual gift tax exclusion |
$147,000 |
$148,000 |
| Gift tax and estate tax applicable exclusion amount |
$5,430,0001 + DSUEA2 |
$5,450,0001 + DSUEA2 |
| GST tax exemption |
$5,430,000 |
$5,450,000 |
1Basic exclusion amount
2Deceased spousal unused exclusion amount
We’ll continue to pass along timely, relevant information–providing fresh and interesting ways for you to engage and motivate your clients. |
