The federal government has announced the expected tax numbers for 2016, and -- surprise -- there were no surprises. With a few exceptions, the most common and useful tax numbers will rise an expected amount to adjust for inflation. Here are some highlights:
Now $5.45 million, up from $5.43 million in 2015. That means $10.9 million for married couples (including same-sex couples!) who take advantage of portability.
This will also increase the exemption amounts for the handful of states that have linked their estate taxes to the federal exemption amount.
Still $14,000, per recipient per year. Unchanged since 2013.
Now $148,000, up from $147,000 in 2015.
On a child's unearned income:
This tax applies to the unearned income of children under age 19, and a young people under age 24 who are full time students and whose earned income is less than half of the amount required for their support.
These numbers were the same for 2015.
You can read the entire IRS report on inflation-adjusted numbers for 2016: IRS Bulletin 2015-44. So interesting!
Or, perhaps you’d prefer Thompson Reuters 2016 tax guide – a bit more palatable. You can download that report here:
Projected 2016 Inflation-Adjusted Tax Brackets and Other Key Figures Nice charts!