2016 Tax Rates and Other Numbers Are Out

 

 

The 2016 tax rates and other numbers are out.  And yes, it’s that time of year again; so, you better have your turkey and all the other fixings ready for Thanksgiving.  But it’s also time to take a look at the latest tax brackets and standard deductions amounts for the upcoming 2016 tax year. To be clear, these apply to the tax return you will file in 2017, not the return you will file in 2016. For those numbers click here. As always, the numbers have changed from this current year, so make sure you make any necessary adjustments if your financial situation has changed significantly, or if you expect it to. Without further adieu, here are the 2016 tax brackets:

2016 Tax Brackets

Tax Rates for Individuals:

Over	But Not Over	Tax Rate
$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	And over	39.6%

 

Head of Household

Over	But Not Over	Tax Rate
$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	And over	39.6%

 

Married Filing Jointly Tax Rates

Over	But Not Over	Tax Rate
$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	And over	39.6%

 

Married Filing Separately Tax Rates

Over	But Not Over	Tax Rate
$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	And over	39.6%

 

The IRS has also released its standard deductions chart for 2015. Everyone who pays taxes will get a small increase in their standard deduction amount.

 

Standard Deductions

Filing Status	Standard Deduction Amount
Single	$6,300
Married Filing Jointly	$12,600
Married Filing Separately	$6,300
Head of Household	$9,300
Surviving Spouse	$12,600

 

Other Tax Rate Changes of Note

There were several other important changes to the tax rates one should be aware of for the coming year, which of course you can start preparing for as soon as January arrives. That’s because it’s never too early to start preparing for the next tax season.

The maximum earned income credit amount for taxpayers filing jointly is now $6,269 for those who have 3 or more qualifying children in 2016, which is a slight increase from 2015.
The foreign earned income exclusion has also ticked up slightly from the 2015 mark of $100,800. It will be $101,300 for 2016.
As far as personal exemptions go, the number for 2016 is $4,050 a slight increase from $4000 this year. Also, the Alternative Minimum Tax exemption amount is $83,300 for married couples who file jointly and $53,900 for singles.
Contact GROCO Today
If you want to examine all the latest numbers from the IRS more closely, then visit their website by clicking here. If you want further information about getting ready for your 2015 tax return, or for preparing for your 2015 tax year, then please contact GROCO for assistance. You can reach us by calling 1-877-CPA-2006, or by clicking here.

 

We hope you found this article about “2016 Tax Rates and Other Numbers Are Out” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

 

Alan L. Olsen, CPA, Wikipedia Bio

 

 

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