2016 Tax Facts At-A-Glance - Downey and Company

1 If taxable income is:If taxable income is:But NotOf theBut NotOf theOverOverThe Tax IsAmount OverOverOverThe Tax IsAmount OverMarried Filing Jointly:Married Filing Jointly:$0$18,450$0+10%$0$0$18,550$0+10% $018,45074,9001,845 + 15%18,45018,55075,3001,855 + 15%18,55074,900151,20010, + 25%74,90075,300151,90010, + 25%75,300151,200230,45029, + 28%151,200151,900231,45029, + 28%151,900230,450411,50051, + 33%230,450231,450413,35051, + 33%231,450411,500464,850111,324 + 35%411,500413,350466,950111, + 35%413,350464,850129, + ,850466,950130, + ,950 Single:Single:$0$9,225$0 + 10%$0$0$9,275$0+10%$09,22537, + 15%9,2259,27537, + 15%9,27537,45090,7505, + 25%37,45037,65091,1505, + 25%37,65090,750189,30018, + 28%90,75091,150190,15018, + 28%91,150189,300411,50046, + 33%189,300190,150413,35046, + 33%190,150411,500413,200119, + 35 %411,500413,350415,050119, + 35%413,350413,200119, + ,200415,050120, + ,050 Standard Deductions20152016 Education Incentives20152016 Married Filing Jointly$12,600$12,600 American Opportunity Tax Credit$2,500$2,500 Head of Household9,2509,300 Phase-outs for American Opportunity Tax Credit:Single6,3006,300 Married Filing Jointly$160,000-180,000$160,000-180,000 Additional (Age 65 or older or blind):Single80,000-90,00080,000-90,000 Married1,2501,250 Phase-outs for exclusion of savings bond income:Unmarried & not surviving spouse1,5501,550 Married Filing Jointly$115,750 or above$116,300 or aboveAGI itemized deduction phase-out.

2 Single77,200 or above77,550 or aboveSingle$258,250 or over$259,400 or overPhase-outs for Coverdell Education Savings Accounts:Head of Household284,050 or over285,350 or overMaximum contributions of $2,000 phase-out rangeMarried Filing Jointly309,900 or over311,300 or overMarried Filing Jointly$190,000-220,000$190,000-220,000 Married Filing Separately154,950 or over155,650 or overSingle95,000-110,00095,000-110,000 Personal Exemptions20152016 Net Investment Income Tax2015 & 2016 Personal exemption$4,000$4, Over threshold amount of:Phase-out range:Married Filing Jointly$250,000 Single$258,250-380,750$259,400-381,900 Married Filing Separately125,000 Head of Household284,050-406,550285,350-407,850 Single200,000 Married Filing Jointly309,900-432,400311,300-433,800 Capital Gains Tax & Qualified Dividends2015 & 2016 Married Filing Separately154,950-216,200155,650-216,900 Rates on dividends and gains for assets held at least 12 months:Kiddie Tax 2015201615% income tax bracket or below0%(under age 18 with unearned income)25% income tax bracket through 35% tax bracket15%First (No Tax)$1,050$1, income tax bracket or above20%Next (Child's Rate)1,0501,050An additional Medicare tax may apply over certain income Over (Parents' Rate)2,1002,100 Corporations (for all tax years since 1993)Depreciation Expense20152016If taxable income is.

3 Election to expense asset under section 179$25,000$25,000*But NotOf theBonus depreciationNot availableNot available*OverOverThe Tax IsAmount Over*Proposed legislation as of this date would increase 179 to $500,000 and bonus depreciation 50%$0$50,000$ 0 + 15%$0 Mileage Rates (per mile)2015201650,00075,0007,500 + 25%50,000 Business$ $ ,000100,00013,750 + 34%75, ,000335,00022,250 + 39%100, ,00010,000,000113,900 + 34%335,000 AMT Exemptions2015201610,000,00015,000,0003, 400,000 + 35%10,000,000 Single$53,600$53,90015,000,00018,333,333 5,150,000 + 38%15,000,000 Married Filing Jointly83,40083,80018,333,333and over6,416,667 + 35%18,333,333201520162016 Tax Facts At-A-Glance Income Taxes222 Forbes Road, Braintree, MA 02184 Scheduled Gift & Estate Tax ChangesSocial Security20152016 Full retirement age 67 (1960 or later)67 (1960 or later)Gift TaxTop EstatePortion of benefit paidYearTop RateTax Rate at age 6270%70%200646%46%Maximum earnings before200745%45%Social Security benefits are200845%45%reduced200945%45% Before full retirement age (lose201035%0% $1 for every $2 of earnings)$15,720$15,720201135%35% Year of full retirement age$41,880$41,880201235%35% After full retirementNo limitNo limit201340%40%Maximum compensation subject201440%40%to FICA taxes201540%40% OASDI (Social Security) max$118,500$118,500201640%40% HI (Medicare)

4 MaxNo limitNo limitGift Tax201520162016 OASDI tax Gift Tax Exclusion$14,000$14, Tax Exemption$5,430,000$5,450,0002016 HI tax *self-employedGeneration Skipping Transfer Tax *employeesExemption$5,430,000$5,450,000* Higher Medicare rate is effective for single with income over $200,000 & married with income over $250,000 Qualified Plans201520162016 Required Minimum DistributionsIRA maximum contribution limit$5,500$5,500must be taken by age 70 1/2 IRA age 50+ catch-up contribution1,0001,000 SEP plan participant maximum percentage of compensation25%25% 2016 Required Minimum SEP plan participant maximum dollar allocation limit53,00053,000 Distribution Table SEP minimum compensation amount600600 Age FactorAge FactorAge FactorSimple IRA employee contribution70 SIMPLE IRA catch-up - age 50 or older3,0003,00071 Maximum elective deferral to SIMPLE plan12,50012,50072 (b) TSA elective employee deferral18,00018,00073 403(b) TSA catch-up - age 50 or older6,0006,00074 403(b) TSA catch-up - 15 or more years of service with current employer3,0003,00075 contribution maximum employer percentage deduction76 limit (of eligible payroll)25%25%77 Defined contribution plan annual addition limit53,00053,00078 elective deferral to retirement plans79 [ , 401(k), 403(b) & 457]18,00018,00080 401(k) age 50+ catch-up contribution6,0006,000 Annual includable compensation limit 265,000265,000 Highly compensated employee compensation limit120,000120,000 Annual retirement benefit limit under defined benefit plan(not to exceed 100% of compensation)

5 210,000210,000 IRAs20152016 Phase-out range for deductible contributions to traditional IRAs Married Filing Jointly: Both spouses as participants in qualified plan$ 98,000 - 118,000$ 98,000 - 118,000 One spouse as participant in qualified plan 183,000 - 193,000 184,000 - 194,000 Single/Head of Household 61,000 - 71,000 61,000 - 71,000 Phase-out range for contributions to Roth IRAs Married Filing Jointly$ 183,000 - 193,000$ 184,000 - 194,000 Single/Head of Household 116,000 - 131,000 117,000 - 132,000 This material is provided for informational purposes only and should not be construed as tax information has been obtained from publicly available sources and is believed to be accurate as of December Tax Facts At-A-GlanceEstate & Gift Taxes222 Forbes Road, Braintree, MA ,000,0002,000,0005,340,0005,450,0005,430 ,000 ExemptionEstate Tax2,000,0003,500,00005,000,0005,120,000 5,250,000