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Income Tax Key Numbers 2015 and 2016

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Qualified charitable distributions (QCDs)

Qualified charitable distributions (QCDs) are distributions made directly from an IRA to a qualified charity. Such distributions may be excluded from income and count toward satisfying any required minimum distributions (RMDs) you would otherwise have to receive from your IRA. Individuals age 70½ and older can make up to $100,000 in QCDs per year. This provision has been permanently extended.

Provisions that are permanently extended

  • Increased Internal Revenue Code (IRC) Section 179 expense limits ($500,000 maximum amount indexed for inflation)
  • The $250 above-the-line tax deduction for educator classroom expenses
  • The ability to deduct state and local sales tax in lieu of the itemized deduction for state and local income tax

Provisions that expire at the end of 2019

  • Bonus depreciation provisions

Provisions that expire at the end of 2016

  • The ability to deduct mortgage insurance premiums as qualified residence interest
  • The deduction for qualified higher education expenses
 

Income Tax Key Numbers

Alternative minimum tax (AMT)20152016
Maximum AMT exemption amount $83,400 (MFJ) $53,600 (Single/HOH) $41,700 (MFS) $83,800 (MFJ) $53,900 (Single/HOH) $41,900 (MFS)
Exemption phaseout threshold $158,900 (MFJ) $119,200 (Single/HOH) $79,450 (MFS) $159,700 (MFJ) $119,700 (Single/HOH) $79,850 (MFS)
26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount) $185,400 ($92,700 if MFS) $186,300 ($93,150 if MFS)
Exemptions/itemized deductions20152016
Personal & dependency exemptions $4,000 $4,050
Phaseout threshold for exemptions and itemized deductions $309,900 (MFJ) $284,050 (HOH) $258,250 (Single) $154,950 (MFS) $311,300 (MFJ) $285,350 (HOH) $259,400 (Single) $155,650 (MFS)
Standard deduction20152016
Standard deduction amount $12,600 (MFJ) $9,250 (HOH) $6,300 (Single) $6,300 (MFS) $12,600 (MFJ) $9,300 (HOH) $6,300 (Single) $6,300 (MFS)
Standard deduction for dependent Greater of $1,050 or $350 + earned income Greater of $1,050 or $350 + earned income
Additional deduction for aged/blind $1,550 (single or head of household) $1,250 (all other filing statuses) $1,550 (single or head of household) $1,250 (all other filing statuses)
Top tax brackets20152016
Single 39.6% of taxable income exceeding $413,200 + $119,996.25 39.6% of taxable income exceeding $415,050 + $120,529.75
MFJ 39.6% of taxable income exceeding $464,850 + $129,996.50 39.6% of taxable income exceeding $466,950 + $130,578.50
MFS 39.6% of taxable income exceeding $232,425 + $64,998.25 39.6% of taxable income exceeding $233,475 + $65,289.25
HOH 39.6% of taxable income exceeding $439,000 + $125,362 39.6% of taxable income exceeding $441,000 + $125,936
Long-term capital gains and qualifying dividends1 generally taxed at maximum rate of:20152016
Taxpayers in top (39.6%) tax bracket 20% 20%
Taxpayers in 25%, 28%, 33%, and 35% tax rate brackets 15% 15%
Taxpayers in tax rate bracket 15% or less 0% 0%

1 Generally, qualifying dividends are dividends received by an individual shareholder from domestic and qualified foreign corporations

Unearned income Medicare contribution tax (Net investment income tax)20152016
Amount of tax 3.80% 3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
Individuals $200,000 $200,000
Married filing jointly $250,000 $250,000
Married filing separately $125,000 $125,000
Standard mileage rates20152016
Use of auto for business purposes (cents per mile) $0.575 $0.54
Use of auto for medical purposes (cents per mile) $0.23 $0.19
Use of auto for moving purposes (cents per mile) $0.23 $0.19
Use of auto for charitable purposes (cents per mile) $0.14 $0.14
IMPORTANT DISCLOSURES

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual's personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2013.

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