PROJECTED Tax Rates and Brackets for 2016

Breaking NewsBloomberg BNA released the PROJECTED 2016 Tax Rates and a projection of inflation adjusted tax items. Included in the report is the warning that higher IRS penalties are expected. The IRS is expected to publish their revenue procedure with the 2016 inflation adjusted amounts later this year.

 

 

The PROJECTED 2016 income tax rate tables are:

Married Filing Jointly 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 excess over $18,550
Over $75,300 but not over $151,900 $10,367.50 plus 25% of excess over $75,300
Over $151,900 but not over $231,450 $29,517.50 plus 28% of excess over $151,900
Over $231,450 but not over $413,350 $51,791.50 plus 33% of excess over $231,450
Over $413,350 but not over $466,950 $111,818.50 plus 35% of excess over $413,350
Over $466,950 $130,578.50 plus 39.6% of excess over $466,950

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 $927.50 plus 15% of excess over $9,275
Over $37,650 but not over $91,150 $5,183.75 plus 25% of excess over $37,650
Over $91,150 but not over $190,150 $18,558.75 plus 28% of excess over $91,150
Over $190,150 but not over $413,350  $46,278.75 plus 33% of excess over $190,150
Over $413,350 but not over $415,050 $119,934.75 plus 35% of excess over $413,350
Over $415,050 $120,529.75 plus 39.6% of excess over $415,050

 

Personal Exemption and Standard Deduction

The Personal Exemption for 2016 is projected to be $4,050 ($4,000 in 2015).

The projected Standard Deductions are as follows for each filing status listed:

Married Filing Jointly/Surviving Spouses — $12,600
Heads of Household — $9,300
All Other Taxpayers — $6,300

Alternative Minimum Tax (AMT)taxes made from money

The AMT exemptions are projected for 2016 as follows:

Married Filing Jointly/Surviving Spouses – $83,800
Heads of Household – $53,900
Unmarried Individuals (other than Surviving Spouses and Heads of Household) – $41,900
Estates and Trusts – $23,900

Estate and Gift Tax Exclusions

Bloomberg BNA projects the estate tax basic exclusion for decedents dying in 2016 will be $5.45 million. The exclusion amount, was $5.43 million in 2015. The annual gift tax exclusion is projected to remain at $14,000 in 2016.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: