DISCLAIMER: The information below is intended to highlight changes that have occurred or are scheduled to occur.  I assume no liability for actions that you may or may not take based on the information below.

 

Summary:

 

   For 2016, the following changes will be in effect. Details are contained in Revenue Procedure 15-53. 

   Selected highlights are below.  For complete details, click on the above link to the Revenue Procedure.

 

   Social Security Wage Base:

   The Social Security wage base remains at $118,500

 

   Individual tax brackets: 

Married Individuals Filing Joint Returns and Surviving Spouses

If Taxable Income Is:                                      The Tax Is:

Not over $18,550                                            10% of the taxable income

Over $18,550 but not over $75,300                $1,855 plus 15% of the excess over $18,550

Over $75,300 but not over $151,900              $10,368 plus 25% of the excess over $75,300

Over $151,900 but not over $231,450            $29,518 plus 28% of the excess over $151,900

Over $231,450 but not over $413,350            $51,792 plus 33% of the excess over $231,450

Over $413,350 but not over $466,950            $111,819 plus 35% of the excess over $413,350

Over $466,950                                                $130,579 plus 39.6% of the excess over $466,950

 

Heads of Household

If Taxable Income Is:                                      The Tax Is:

Not over $13,250                                            10% of the taxable income

Over $13,250 but not over $50,400                $1,325 plus 15% of the excess over $13,250

Over $50,400 but not over $130,150              $6,898 plus 25% of the excess over $50,400

Over $130,150 but not over $210,800            $26,835 plus 28% of the excess over $130,150

Over $210,800 but not over $413,350            $49,417 plus 33% of the excess over $210,800

Over $413,350 but not over $441,000            $116,259 plus 35% of the excess over $413,350

Over $441,000                                                $125,936 plus 39.6% of the excess over $441,000

 

Unmarried Individuals (other than Surviving Spouses and Heads of Households)

If Taxable Income Is:                                      The Tax Is:

Not over $9,275                                              10% of the taxable income

Over $9,275 but not over $37,650                  $928 plus 15% of the excess over $9,275

Over $37,650 but not over $91,150                $5,184 plus 25% of the excess over $37,650

Over $91,150 but not over $190,150              $18,559 plus 28% of the excess over $91,150

Over $190,150 but not over $413,350            $46,279 plus 33% of the excess over $190,150

Over $413,350 but not over $415,050            $119,935 plus 35% of the excess over $413,350

Over $415,050                                                $120,530 plus 39.6% of the excess over $415,050

 

Married Individuals Filing Separate Returns

If Taxable Income Is:                                      The Tax Is:

Not over $9,275                                              10% of the taxable income

Over $9,275 but not over $37,650                  $928 plus 15% of the excess over $9,275

Over $37,650 but not over $75,950                $5,184 plus 25% of the excess over $37,650

Over $75,950 but not over $115,725              $14,759 plus 28% of the excess over $75,950

Over $115,725 but not over $206,675            $25,896 plus 33% of the excess over $115,725

Over $206,675 but not over $233,475            $55,909 plus 35% of the excess over $206,675

Over $233,475                                                $65,289 plus 39.6% of the excess over $233,475

 

Estates and Trusts

If Taxable Income Is:                                      The Tax Is:

Not over $2,550                                              15% of the taxable income

Over $2,550 but not over $5,950                    $383 plus 25% of the excess over $2,550

Over $5,950 but not over $9,050                    $1,233 plus 28% of the excess over $5,950

Over $9,050 but not over $12,400                  $2,101 plus 33% of the excess over $9,050

Over $12,400                                                  $3,206 plus 39.6% of the excess over $12,400  

  

  

   Personal Exemptions:

   Personal exemptions increase from $4,000 to $4,050

 

   Standard Deductions:

   The standard deduction amount increases by $50 for Head of Household. All others remain unchanged from 2015:

   Single: $6,300

   Married - Joint: $12,600

   Married - Separate: $6,300

   Head of Household: $9,300

   Surviving Spouse: $12,600

 

   Estate Tax Exclusion:

   The Federal estate tax exclusion will increase from $5.43Million to $5.45Million