Key Numbers Projected for 2016

Exemptions
2015Projected for 2016
Personal and dependency$4,000$4,050
Phaseout threshold (applies to itemized deductions as well)
Married filing jointly$309,900$311,300
Head of household$284,050$285,350
Single$258,250$259,400
Married filing separately$154,950$155,650

Standard deduction
2015Projected for 2016
Married filing jointly$12,600$12,600
Head of household$9,250$9,300
Single$6,300$6,300
Married filing separately$6,300$6,300
Standard deduction for dependentGreater of $1,050 or $350 + earned incomeGreater of $1,050 or $350 + earned income
Additional standard deduction for aged/blind
Single/ Head of household$1,550$1,550
All others$1,250$1,250

Top income tax bracket (39.6%, 20% for long-term capital gains and qualified dividends)
2015Projected for 2016
Married filing jointly$464,850$466,950
Head of household$439,000$441,000
Single$413,200$415,050
Married filing separately$232,425$233,475

Alternative minimum tax (AMT)
2015Projected for 2016
Maximum AMT exemption amount
Married filing jointly$83,400$83,800
Single/ Head of household$53,600$53,900
Married filing separately$41,700$41,900
Exemption phaseout threshold
Married filing jointly$158,900$159,700
Single/ Head of household$119,200$119,700
Married filing separately$79,450$79,850
26% on AMTI* up to amount, 28% on AMTI above amount
Married filing separately$92,700$93,150
All others$185,400$186,300

*Alternative minimum taxable income

Kiddie tax: child’s unearned income
2015Projected for 2016
Above this amount taxed at parent’s tax rate$2,100$2,100

IRAs
2015Projected for 2016
Contribution limits
Traditional and Roth IRAs$5,500 ($6,500 if age 50 or older)$5,500 ($6,500 if age 50 or older)
Roth IRA income phaseout range (contributions)
Single/ Head of household$116,000 – $131,000$117,000 – $132,000
Married filing jointly$183,000 – $193,000$184,000 – $194,000
Married filing separately$0 – $10,000$0 – $10,000
Traditional IRA income phaseout range (deductibility)
1. Covered by an employer-sponsored plan and filing as:
Single/ Head of household$61,000 – $71,000$61,000 – $71,000
Married filing jointly$98,000 – $118,000$98,000 – $118,000
Married filing separately$0 – $10,000$0 – $10,000
2. Not covered by plan but filing joint return with covered spouse$183,000 – $193,000$184,000 – $194,000

Estate planning
2015Projected for 2016
Top gift, estate, and generation-skipping transfer (GST) tax rate40%40%
Annual gift tax exclusion$14,000$14,000
Noncitizen spouse annual gift tax exclusion$147,000$148,000
Gift tax and estate tax applicable exclusion amount$5,430,0001 + DSUEA2$5,450,0001 + DSUEA2
GST tax exemption$5,430,000$5,450,000

1Basic exclusion amount

2Deceased spousal unused exclusion amount

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

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