The new year brings new tax rules. This year marks the third year in a row of straightforward tax changes primarily made up of minor adjustments due to indexing for inflation. Income tax rates remained unchanged while income tax brackets were adjusted slightly upwards. The personal exemption increased $50 to $4,050 for 2016. The standard deduction amounts were unchanged, with the exception of the heads of households amount which increased by $50 to $9,300 for 2016. The AMT exemption amount was increased slightly from $83,400 to $83,800 for married filing joint filers in 2016. The estate tax exemption grew by $20,000 per person to $5,450,000. For more details, view Revenue Procedure 2015-53.
With cost-of-living lower than the required thresholds to trigger adjustments, Social Security benefits and contribution limits on retirement plans were unchanged from 2015.
The 2016 tax updates to your financial planning software will include updated income tax calculations, estate tax calculations and Social Security estimates. The 2016 tax updates for Silver Financial Planner and TOTAL Planning Suite are now available.
