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3016 Nederland Avenue
Nederland, TX 77627

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Eileen H. Law, CPA, P.C., Law Financial Services & The Law Insurance Agency.

(409) 727-3877

 

FYI - Tax

Do you know the tax changes that could affect your 2016 tax return?

Here are some tax changes for 2016:

  • Deductions and Exemptions
  • Standard Mileage Rate
  • Maximum Retirement Contributions
  • Adjusted Gross Income Phaseout Levels



Deductions and Exemptions

Standard Deduction1 
Single$6,300
Married - Filing Jointly$12,600
Married - Filing Separately$6,300
Head of Household$9,300
Personal Exemption$4,050









 

1For taxpayers age 65 or older or blind, the deduction is increased.

To itemize you must have deductions that are equal to or above the standard deduction levels.

No personal exemption is allowed to an individual who is eligible to be claimed as a dependent on another taxpayer's return.

 


Standard Mileage Rate

For Business54 cents
For Medical19 cents
For Charity14 cents
For Moving19 cents









Maximum Retirement Contributions

Individual Retirement Arrangements (IRA)under age 50$5,500
 age 50 and over$6,500
SIMPLE IRAunder age 50$12,500
 age 50 and over$15,500
401(k) Planunder age 50$18,000
 age 50 and over$24,000












Adjusted Gross Income Phaseout Levels

IRA Deduction (with Co. Pension)Phaseout Level
Single/Head of Household$61,000 - $71,000
Married - Filing Jointly$98,000 - $118,000
Married - Filing Separately$0 - $10,000
When spouse has company pension$181,000 - $191,000

  






Roth IRA EligibilityPhaseout Level
Single/Head of Household$117,000 - $132,000
Married - Filing Jointly$184,000 - $194,000
Married - Filing Separately$0 - $10,000
Rollover of Regular IRA to Roth IRANo Limit

  




Itemized Deductions & Personal Exemptions

Child Tax Credit ($1,000 per child)Phaseout Level
Single/Head of HouseholdStarts at $75,000
Married - Filing JointlyStarts at $110,000
Married - Filing SeparatelyStarts at $55,000








For 2016 the deduction for personal and dependency exemptions and itemized deductions will not be reused or eliminated for the higher income taxpayers as of right now.

 


If you have any questions or need forms, you can call the IRS at 1-800-829-1040 or go online at www.irs.gov.

The information contained in this site is of a general nature and should not be acted upon without further details and/or consulting your tax preparer.