Preview Key 2016 Tax Figures

 

While official numbers for 2016 are not yet released by the Internal Revenue Service (IRS), many figures are formulas set within the Internal Revenue Code (IRC) or are based on the Consumer Price Index (CPI) published by the Department of Labor. Using the release of recent CPI figures, a number of reference sources are projecting key figures for 2016. While many are unchanged from 2015 they are noted here for your planning purposes.

Tax Brackets: While the actual income brackets for tax rates are not set for 2016, the rate of inflation that impacts the income levels for each tax rate is anticipated to raise the income brackets by approximately 0.4 – 0.5%.

Personal Exemption: $4,050 in 2016 ($4,000 in 2015)

Standard Deductions:

Deduction Tax Year 2016 Tax Year 2015
Single
$6,300
$6,300
Head of Household
9,300
9,250
Married Filing Joint
12,600
12,600
Married Filing Separately
6,300
6,300
Dependents (kiddie tax)
1,050
1,050
65 or Blind: Married
Add $1,250
Add $1,250
Single
Add $1,550
Add $1,550

Other Key figures:

Estate & Gift Tax Exclusion
$5.45 million
$5.43 million
Annual Gift Tax Exclusion
$14,000
$14,000
Roth and Traditional IRA Contribution Limit
$5,500
$5,500

Caution: Remember, these are early figures using the recently announced Consumer Price Index. Official numbers are released by the IRS later in the year.

US Taxes Inc