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Important Tax Figures for 2016

The following table provides some important federal tax information for 2016, as compared with 2015.Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation.

Social Security/ Medicare

2016

2015

Social Security Tax Wage Base

$118,500

$118,500

Medicare Tax Wage Base

No limit

No limit

Employee portion of Social Security

6.2%

6.2%

Individual Retirement Accounts

2016

2015

Roth IRA Individual, up to 100% of earned income

$ 5,500

$ 5,500

Traditional IRA Individual, up to 100% of earned Income

$ 5,500

$ 5,500

Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older

$ 1,000

$ 1,000

Qualified Plan Limits

2016

2015

Defined Contribution Plan limit on additions onSections 415(c)(1)(A)

$ 53,000

$ 53,000

Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))

$210,000

$210,000

Maximum compensation used to determine contributions

$265,000

$265,000

401(k), SARSEP, 403(b) Deferrals (Section 402(g)), &457 deferrals (Section 457(b)(2))

$ 18,000

$18,000

401(k), 403(b), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older

$ 6,000

$ 6,000

SIMPLE deferrals (Section 408(p)(2)(A))

$ 12,500

$12,500

SIMPLE additional "catch-up" contributions for employees age 50 and older

$ 3,000

$ 3,000

Compensation defining highly compensated employee (Section 414(q)(1)(B))

$120,000

$120,000

Compensation defining key employee (officer)

$170,000

$170,000

Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))

$ 600

$ 600

Driving Deductions

2016

2015

Business mileage, per mile

54 cents

57.5 cents

Charitable mileage, per mile

14 cents

14 cents

Medical and moving, per mile

19 cents

23 cents

Business Equipment

2016

2015

Maximum Section 179 deduction

$500,000

$500,000

Phase out for Section 179

$2 million

$2 million

Transportation Fringe Benefit Exclusion

2016

2015

Monthly commuter highway vehicle and transit pass

$ 255

$ 250

Monthly qualified parking

$ 255

$ 250

Standard Deduction

2016

2015

Married filing jointly

$ 12,600

$ 12,600

Single (and married filing separately)

$ 6,300

$ 6,300

Heads of Household

$ 9,300

$ 9,250

Personal Exemption

2016

2015

Amount

$4,050

$ 4,000

Personal Exemption Phaseout

2016

2015

Married filing jointly and surviving spouses

Begins at $311,300

Begins at $309,900

Heads of Household

Begins at $285,350

Begins at $284,050

Unmarried individuals

Begins at $259,400

Begins at $258,250

Married filing separately

Begins at $155,650

Begins at $154,950

Domestic Employees

2016

2015

Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.

$ 2,000

$ 1,900

Kiddie Tax

2016

2015

Net unearned income not subject to the "Kiddie Tax"

$ 2,100

$ 2,100

Estate Tax

2016

2015

Federal estate tax exemption

$5.45 million

$5.43 million

Maximum estate tax rate

40%

40%

Annual Gift Exclusion

2016

2015

Amount you can give each recipient

$14,000

$14,000