2016 Key Amounts, Limits, and Rates
/| Exemption Amounts: | |
Personal and Dependent |
$ 4,050 |
| Estate | $ 600 |
| Trust Required to Distribute All Income Currently | $ 300 |
| All Other Trusts | $ 100 |
Standard Deduction Amounts: |
|
Single Individual |
$ 6,300 |
| Head of Household | $ 9,300 |
| Married Filing Jointly and Surviving Spouses | $ 12,600 |
| Married Filing Separately | $ 6,300 |
| Dependent - Minimum Amount | $ 1,050 |
| Additional Deduction for Blind or Aged | $ 1,250 |
| Additional Deduction for Blind or Aged if Unmarried and not a Surviving Spouse | $ 1,250 |
| Gross Income Thresholds for Filing Form 1040:
For U.S. Citizens/Residents who are not Dependents |
|
Single and under 65 |
$ 10,350 |
| Head of HouseholdSingle and 65 or older | $ 11,900 |
| Married filing jointly, under 65 (both spouses) | $ 20,700 |
| Married filing jointly, 65 or older (one spouse) | $ 21,950 |
Married filing jointly, 65 or older (both spouses) |
$ 23,200 |
| Married filing separately, any age | $ 4,050 |
| Head of household, under 65 | $ 13,350 |
| Head of household, 65 or older | $ 14,900 |
| Surviving spouse with dependent child, under 65 | $ 16,650 |
| Surviving spouse with dependent child, 65 or older | $ 17,900 |
| Per Diem Rates: | |
High cost localities (10/1/2015 - 9/30/2016) |
$ 275 |
| High cost localities (10/1/2016 - 9/30/2017) | * |
| Low cost localities (10/1/2015 - 9/30/2016) | $ 185 |
| Low cost localities (10/1/2016 - 9/30/2017) | * |
| Standard Mileage Rates | |
Business |
* |
| Charitable | * |
| Medical and moving | * |
Alternative Minimum Tax Exemption Amounts: |
|
Single Individual |
$ 53,900 |
| Head of Household | $ 53,900 |
| Married Filing Jointly and Surviving Spouses | $ 83,800 |
| Married Filing Separately | $ 41,900 |
| Estates and Trusts | $ 23,900 |
Section 179 Expensing: |
|
Maximum eligible property that can be expensed |
$ 25,000** |
Maximum qualified real property that can be expensed |
$ 0 ** |
Threshold at which dollar for dollar reduction of maximum deduction begins if cost of eligible property placed in service exceeds threshold (** Based on present law. See note below.) |
$ 200,000** |
Retirement and Pension Plan Limitations: |
|
Maximum IRA deductible contribution |
$ 5,500 |
| Maximum IRA age 50 catch-up contribution | $ 1,00 |
| Maximum 401(k) excludable elective deferrals | $ 18,000 |
| Maximum 401(k) age 50 catch-up contributions | $ 6,000 |
| Maximum SIMPLE elective contributions | $ 12,500 |
| Maximum SIMPLE age 50 catch-up contributions | $ 3,000 |
| Limit on annual additions under defined contribution plan (applies to SEPs) | $ 53,000 |
| Limit on annual benefit under defined benefit plan | $ 210,000 |
| Limit on annual compensation taken into account under qualified plans or SEPs | $ 265,000 |
| Compensation threshold for required SEP participation | $ 600 |
| Compensation threshold for "highly compensated" employee | $ 120,000 |
| Compensation threshold for "key" employee | $ 170,000 |
| Other Compensation-Related Amounts: | |
| Maximum Social Security Wage Base (OASDI) | $ 118,500 |
| Maximum FUTA Wage Base | $ 7,000 |
| Health Savings Accounts (HSA): | |
| Annual contribution limitation for an individual with self-only coverage | $ 3,350 |
| Annual contribution limitation for an individual with family coverage | $ 6,750 |
| Key Tax Extenders | |
Congress has taken no action for 2016 on the 50+ tax breaks commonly referred to as "tax extenders". These provisions have been extended retroactively on several occasions, most recently on December 19, 2014 for the 2014 tax year. The tax extenders include enhanced ($500,000) Section 179 expensing limits, 50-percent bonus depreciation, the research credit, and many other popular tax breaks. For a list of the 2014 tax extenders, see 360,022. |
|
| Earned Income Credit: | |
| Maximum credit amount - one child | $ 3,373 |
| Amount of earned income required for max credit | $ 9,920 |
| Maximum credit amount - two children | $ 5,572 |
| Amount of earned income required for max credit | $ 13,930 |
| Maximum credit amount - three or more children | $ 6,269 |
| Amount of earned income required for max credit | $ 13,930 |
| Maximum credit amount - no children | $ 506 |
| Amount of earned income required for max credit | $ 6,610 |
| Investment Income Limit | $ 3,400 |
| Educational Tax Credits: | |
| American Opportunity Credit (Hope Credit) | $ 2,500 |
| Lifetime Learning Credit | $ 2,000 |
| Coverdell Education Savings Account (maximum amount per beneficiary) | $ 2,000 |