| 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 on Sections 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 |
