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Standard Deduction Amounts
- Single or married filing separately: $6,300
- Married filing jointly: $12,600
- Head of household: $9,300
The additional standard deduction for people who have reached age 65 (or who are blind) is $1,250 for married taxpayers or $1,550 for unmarried taxpayers.
Personal Exemption Amount and Phaseout
The personal exemption amount for 2016 is a nice round $4,050.
- For single taxpayers, personal exemptions begin to be phased out at $259,400 and are fully phased out by $381,900.
- For married taxpayers filing jointly, personal exemptions begin to be phased out at $311,300 and are fully phased out by $433,800.
- For taxpayers filing as head of household, personal exemptions begin to be phased out at $285,350 and are fully phased out by $407,850.
- For married taxpayers filing separately, personal exemptions begin to be phased out at $155,650 and are fully phased out by $216,900.
Limitation on Itemized Deductions
The amount of itemized deductions which you are allowed to claim is reduced by 3% of the amount by which your adjusted gross income exceeds certain threshold amounts. These threshold amounts are the same as the lower threshold amounts listed above for the personal exemption phaseout (e.g., $259,400 for single taxpayers). However:
- Your itemized deductions cannot be reduced by more than 80% as a result of this limitation, and
- Your itemized deductions for medical expenses, investment interest expense, casualty/theft losses, and gambling losses are not reduced as a result of this limitation.
- IRA and 401(k) Contribution LimitsFor 2016, the contribution limit to Roth and traditional IRAs is $5,500, with an additional catch-up contribution of $1,000 for people age 50 or older.
- The contribution limit for 401(k), 403(b), and most 457 plans is increased to $18,000, with an additional catch-up contribution of $6,000 for people age 50 or older.
- The maximum possible contribution for defined contribution plans is $53,000.
Tax Information
IRS Commissioner John Koskinen said the 2015 tax filing season "will be one of the most complicated filing seasons we've ever had." If you think it's going to get easier in 2016 you have another thing coming.
2016 Tax Brackets
Single | Head of Household | Married Filing Joint | Married Filing Separately |
|---|---|---|---|
| Taxable Income | Taxable Income | Taxable Income | Taxable Income |
| Tax Bracket: | Tax Bracket: | Tax Bracket: | Marginal Tax Rate: |
| $0-$9,275 10% | $0-$13,250 10% | $0-$18,550 10% | $0-$9,275 10% |
| $9,276-$37,650 15% | $13,251-$50,400 15% | $18,551-$75,300 15% | $9,276-$37,650 15% |
| $37,651-$91,150 25% | $50,401-$130,150 25% | $75,301-$151,900 25% | $37,651-$75,950 25% |
| $91,151-$190,150 28% | $130,151-$210,800 28% | $151,901-$231,450 28% | $75,951-$115,725 28% |
| $190,151-$413,350 33% | $210,801-$413,350 33% | $231,451-$413,350 33% | $115,726-$206,675 33% |
| $413,351-$415,050 35% | $413,351-$441,000 35% | $413,351-$466,950 35% | $206,676-$233,475 35% |
| $415,051+ 39.6% | $441,001+ 39.6% | $466,951+ 39.6% | $233,476+ 39.6% |