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Various Adjustments of Tax Numbers for 2016

Filing statuses: S=single, HH=head of household, MFS=married filing separately, MFJ=married filing joint, QW=qualifying widow(er);
Most references to AGI mean modified adjusted gross income for that deduction.
Maximum Salary Deferrals: $18,000 for 401(k), 403(b), 501(c), 457 plans; / $12,500 for SIMPLE
'catch-up'contribution limits for age 50+: (additional $6,000 / $3,000 for SIMPLE)
$53,000 for SEP-IRA
Traditional IRA Contributions Limit: $5,500 (up to amount of earned income for the year)
  additional catch-up $1,000 for age 50+

Traditional IRA Contributions Deduction AGI Phaseout:
(when also eligible to contribute
to a retirement plan at work)
MFJ, QW:  $98,000-$118,000
S, HH:  $61,000-$71,000
MFS:  0-$10,000
And when taxpayer not plan-eligible, but spouse covered by a plan, MFJ: $184,000-$194,000

Roth IRA Contributions AGI Phaseout:
MFJ:  $184,000-$194,000
S, HH:  $117,000-$132,000
MFS:  0-$10,000

Retirement Savings Credit ('Saver's Credit') AGI phaseout:
MFJ:  $61,500
HH:  $46,125
S,QW,MFS:  $30,750
Social Security: Before retirement age, can earn up to $15,720 without repaying benefits.
  Benefits reduced $1 for each $2 earned over limit
Preceding months in year of reaching retirement age: $41,880.
  Benefits reduced $1 for each $3 earned over limit
On/after retirement month, no limit.

Earnings subject to SS tax:
  Employee: $118,500 (maximum $7,347 w/h)
  Household help: cash wages over $2,000
Health Savings Account: Maximum HSA contribution $3,350 individual coverage / $6,750 family coverage.
  additional catch-up $1,000 for age 55+
Educational Credit:  (MFS ineligible) American Opportunity Credit (aka Hope Credit):
100% of first $2,000, 25% of next $2,000 tuition (all 4 years college)
   AGI phaseout: $80,000-$90,000 (individual); $160,000-$180,000 (MFJ)
Lifetime Learning Credit: 20% of up to $10,000 tuition (any year college+)
   AGI phaseout: $55,000-$65,000 (individual); $111,000-$131,000 (MFJ)
Student Loan Interest:  (MFS ineligible) Up to $2,500
AGI phaseout: $65,000-$80,000 (individual); $130,000-$160,000 (MFJ)

Earned Income Credit:  (MFS ineligible)
Earned income starting at:
$6,610 (no child), $9,920 (one child), $13,930 (two/more children)

Earned income/modified AGI phaseout range:
(All phaseout ranges increased by $5,550 if MFJ)
One qualifying child:  $18,190-$39,296  (maximum credit $3,373)
Two qualifying children:  $18,190-$44,648  (maximum credit $5,572)
Three/more qualifying children:  $18,190-$47,955  (maximum credit $6,269)
Qualifying without child: $8,270-$14,880   (maximum credit $560)
(disqualified if investment income over $3,400, any filing status)
Adoption Credit: Up to $13,460 (phaseout $201,920-$241,920)
'Kiddie Tax' Child under 18/full-time student under 24, with interest/dividends over $2,100
Standard Mileage Rates:   Business:  54¢  (Depreciation adjustment: 24¢)
  Charity:  14¢
  Medical/Moving:  19¢
Itemized Deduction phaseout: Phaseout starts at AGI of $311,300 (MFJ), $285,350 (HH), $259,400 (S), $155,650 (MFS)
Personal Exemption AGI phaseout: $309,900-$432,400  (MFJ, QW)
$284,050-$406,550  (HH)
$258,250-$380,750  (S)
$154,950-$216,220  (MFS)
Section 179 Expense: per tangible personal property: $25,000; overall total $500,000
phaseout starts at $2,010,000 placed in service
Depreciation Limit (with/without bonus depreciation): Passenger auto limit, first year business: $3,160 / 11,160; Trucks, vans: $3,560 / $11,560
Capital Gain Tax: Long-term (holding over a year):
20% for the taxpayers in the highest 39.6% bracket
15% for taxpayers in other brackets, 0% for those in the 15%/10% brackets
Gift Tax Exclusion/ Estate Exclusion: $14,000 / $5,450,000
Foreign Income Exclusion: $101,300

See the original 'NEW TAX LAWS' menu for historical changes.

2016 Standard Deductions/Personal Exemption New for 2016