Federal Income Tax Rates
Retirement Plans

Married Filing Jointly
    Traditional and Roth IRA

Taxable Income                                   Tax Rate
$0 to $18,550                                        10%                
$18,551 to $75,300                               15%                
$75,301 to $151,900                             25%                
$151,901 to $231,450                            28%                
$231,451 to $413,350                            33%                
$413,351 to $466,950                            35%                
More than $466,950                              39.6%              
IRA Annual                              2015                 2016
Contribution Limit                      $5500               $5,500
50+ Catch up                            $1,000              $1,000
Traditional IRA Phase-Out                 
Participants in Employer Plans
Married filing Jointly           $98,000-$118,000              Same
Married filing Sep               $0-$10,000                         Same    
All Others                           $61,000-$71,000                Same   

 
Single
 
Roth IRA Phase-Out   

Taxable Income                                   Tax Rate
$0 to $9,275                                         10%                
$9,276 to $37,650                                 15%                
$37,651 to $91,150                               25%                
$91,151 to $190,150                             28%                
$190,151 to $413,350                            33%                
$413,351 to $415,050                            35%                
More than $415,050                              39.6%              
 
Standard Deductions               2015            2016
Single                                       $6,300         $6,300
Married filing jointly                    $12,600       $12,600
Married filing separately             $6,300         $6,300
Head of household                    $9,250         $9,300
Personal Exemption                  $4,000         $4,050
Kiddie Tax                                 $1,050        $1,050
 
Self-Employment Tax

• Tax rate:  15.3%
• Surtax:  .9% Medicare surtax is added to SE income over $200,000 (single), $250,000 (MFJ) or $125,000 (MFS)
• Wage base:  $118,500 of Self-employment income for Social Security; no ceiling on Medicare Tax

 
Standard Mileage Rate

• Business: 54 cents per mile
• Medical and moving: 19 cents per mile
• Charitable services: 14 cents per mile

 
Source:  IRS Revenue Procedure 2015-13
Married – Joint     $183,000-$193,000    $184,000-$194,000
Married – Sep      $0-$10,000                  $0-$10,000
All Others             $116,000-$131,000     $117,000-$132,000
 
SEP IRA and SIMPLE IRA
Contribution Limit                   2015               2016
Max Additions to SEP                       $53,000        $53,000        
Max Compensation for SEP             $265,000      $265,000
SIMPE IRA salary deferral max        $12,500        $12,500
50+ catch-up                                     $3,000          $3,000
 
Qualified Plans
Contribution Limit             2015           2016
401(k), 403(b), 457(b)
Salary Deferral Max             $18,000      $18,000           
50+ catch-up                       $6,000        $6,000
 
Max Annual Additions          $53,000      $53,000
In a Defined Contribution Plan
 
Max Annual Benefit in          $210,000    $210,000
In a Defined Benefit Plan
 
Max Compensation             $265,000    $265,000
Considered
                                         
Highly Compensated           $120,000    $120,000
Employee
                                         
Key Employee-Officer          $170,000    $170,000
 
Source:  IRS News Release IR-2015-118

The Internal Revenue Service simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500
the safe harbor threshold for deducting certain capital items.
 
The change affects businesses that do not maintain an applicable financial statement
(audited financial statement).
It applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item.
 
The new $2,500 threshold applies to any such item substantiated by an invoice.
As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.
 
“We received many thoughtful comments from taxpayers, their representatives and the professional tax community, said IRS Commissioner John Koskinen. “This important step simplifies taxes for small businesses, easing the recordkeeping and paperwork burden on small business owners and their tax preparers.“
 
Responding to a February comment request, the IRS received more than 150 letters from businesses and their representatives suggesting an increase in the threshold. Commenters noted that the existing $500 threshold was too low to effectively reduce administrative burden on small business. Moreover, the cost of many commonly expensed items such as tablet-style personal computers, smart phones, and machinery and equipment parts typically surpass the $500 threshold.
 
As before, businesses can still claim otherwise deductible repair and maintenance costs, even if they exceed the $2,500 threshold.
The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior
to 2016.For taxpayers with an applicable financial statement, the de minimis or small-dollar threshold remains $5,000.
 
 
Further details on this change can be found in Notice 2015-82, posted  on IRS.gov.

The Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
 
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 54 cents per mile for business miles driven, down from 57.5 cents for 2015
• 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015 
• 14 cents per mile driven in service of charitable organizations 

The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.
 
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
 
Taxpayers always have the option of calculating the actual costs of using their vehicle
rather than using the standard mileage rates.
 
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
 
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc 2010-51. Notice Rev. Proc 2016-01contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan. 
 
Source: IRS Newswire