APPENDIX G: PROVIDED TAX TABLES The tax tables and limits below are provided to individuals taking the July 2016 CFP Certification Examination. Exam Window Tax Rates, Tables, & Law Tested July 2016 2016 November 2016 2016 March 2017 2016 INCOME TAX RATES 2016 SINGLE Taxable Income $0 -- $9,275 $0 10% $ 0 9,275 -- 37,650 927.50 15 9,275 37,650 -- 91,150 5,183.75 25 37,650 91,150 -- 190,150 18,558.75 28 91,150 190,150 -- 413,350 46,278.75 33 190,150 413,350 -- 415,050 119,934.75 35 413,350 415,050 -- ------- 120,529.75 39.6 415,050 2016 MARRIED FILING JOINTLY Taxable Income $0 -- $18,550 $0 10% $ 0 18,550 -- 75,300 1,855.00 15 18,550 75,300 -- 151,900 10,367.50 25 75,300 151,900 -- 231,450 29,517.50 28 151,900 231,450 -- 413,350 51,791.50 33 231,450 413,350 -- 466,950 111,818.50 35 413,350 466,950 -- ------- 130,578.50 39.6 466,950
2016 MARRIED FILING SEPARATELY Taxable Income $0 -- $9,275 $0 10% $ 0 9,275 -- 37,650 927.50 15 9,275 37,650 -- 75,950 5,183.75 25 37,650 75,950 -- 115,725 14,758.75 28 75,950 115,725 -- 206,675 25,895.75 33 115,725 206,675 -- 233,475 55,909.25 35 206,675 233,475 -- ------- 65,289.25 39.6 233,475 2016 HEAD OF HOUSEHOLD Taxable Income $0 -- $13,250 $0 10% $ 0 13,250 -- 50,400 1,325.00 15 13,250 50,400 -- 130,150 6,897.50 25 50,400 130,150 -- 210,800 26,835.00 28 130,150 210,800 -- 413,350 49,417.00 33 210,800 413,350 -- 441,000 116,258.50 35 413,350 441,000 -- ------- 125,936.00 39.6 441,000
2016 NET INVESTMENT INCOME TAX The net investment income tax is applied at a rate of 3.8%. Individuals Applied to the lesser of: the net investment income, or the excess of modified adjusted gross income over the following threshold amounts: $250,000 for married filing jointly or qualifying widow(er) with dependent child $125,000 for married filing separately $200,000 in all other cases Estates & Trusts Applied to the lesser of: the undistributed net investment income, or the excess of: the adjusted gross income over $12,400 2016 ADDITIONAL MEDICARE TAX The additional Medicare tax is applied at a rate of 0.9%. Filing Status Threshold Amount Married filing jointly $250,000 Married filing separately $125,000 Single, Head of household, or Qualifying widow(er) $200,000
2016 LONG-TERM CAPITAL GAINS RATES Maximum Long-Term Capital Gain Tax Rate Taxpayers in the 10% or 15% ordinary income tax bracket 0% Taxpayers in the 25%, 28%, 33%, or 35% ordinary income tax bracket 15% Taxpayers in the 39.6% ordinary income tax bracket 20% IRC Section 1250 depreciation recapture 25% Collectibles 28% 2016 CORPORATE INCOME TAX RATES Taxable Income $0 -- $50,000 0 15% $ 0 50,000 -- 75,000 7,500 25 50,000 75,000 -- 100,000 13,750 34 75,000 100,000 -- 335,000 22,250 39 100,000 335,000 -- 10,000,000 113,900 34 335,000 10,000,000 -- 15,000,000 3,400,000 35 10,000,000 15,000,000 -- 18,333,333 5,150,000 38 15,000,000 18,333,333 -- ------- 35 0
2016 ESTATES AND NON-GRANTOR TRUSTS INCOME TAX RATES Taxable Income $0 -- $2,550 0 15% $ 0 2,550 -- 5,950 382.50 25 2,550 5,950 -- 9,050 1,232.50 28 5,950 9,050 -- 12,400 2,100.50 33 9,050 12,400 -- ------- 3,206.00 39.6 12,400 2016 STANDARD DEDUCTIONS AND PERSONAL EXEMPTION Standard Deduction*: Single $ 6,300 Married filing jointly/ Qualifying widow 12,600 Married filing separately 6,300 Head of household 9,300 Dependent 1,050 ** *increased by $1,250 for a married taxpayer age 65 or older or blind ($2,500 if both 65 and blind); by $1,550 for a single taxpayer age 65 or older or blind ($3,100 if both 65 and blind) **or $350 plus earned income, if greater Personal Exemption: $4,050
2016 RETIREMENT PLAN CONTRIBUTION LIMITS AND PHASE-OUTS Elective deferrals 401(k), 403(b), 457, and SARSEPS $18,000 Catch - up contribution $6,000 Defined contribution limit $53,000 Defined benefit limit $210,000 SIMPLE plan elective deferral limit $12,500 SIMPLE catch-up contribution $3,000 Maximum includible compensation $265,000 Highly compensated employee Look-back to 2014 $115,000 Look-back to 2015 $120,000 Key employee (top-heavy plan) >$170,000 SEP participation limit $600 IRA or Roth IRA contribution limit $5,500 IRA or Roth IRA catch-up $1,000 IRA deduction phase-out for active participants Single $61,000-$71,000 Married filing jointly $98,000-$118,000 Married filing separately $0-$10,000 Spousal IRA $184,000-$194,000 Roth IRA phase-out Single $117,000-$132,000 Married filing jointly $184,000-$194,000
2016 ESTATE AND GIFT TAX RATES AND EXEMPTIONS Applicable credit for gift/estate taxes $2,125,800 Applicable exclusion amount $5,450,000 Max Estate/Gift Tax Rate 40% Max Generation-Skipping Transfer Tax (GSTT) Rate 40% Annual gift tax exclusion $14,000 2016 SOCIAL SECURITY WAGE BASE AND EARNINGS LIMITS Wage base $118,500 Earnings limitations: Below Full Retirement Age $15,720 Persons reaching Full Retirement Age $41,880 2016 SOCIAL SECURITY FULL RETIREMENT AGES Year of Birth Social Security Social Security Full Retirement Age Year of Birth Full Retirement Age 1943-54 66 1958 66 and 8 months 1955 66 and 2 months 1959 66 and 10 months 1956 66 and 4 months 1960 and later 67
2016 HEALTH SAVINGS ACCOUNT LIMITS High Deductible Health Plan Minimum Deductible Amounts Single $1,300 Family $2,600 Maximum Out-of-Pocket Limits Single $6,550 Family $13,100 Contribution Maximums Single $3,350 Family $6,750 Catch-Up Contributions (age 55 or older) $1,000
2016 ALTERNATIVE MINIMUM TAX (AMT) EXEMPTIONS AND PHASE-OUTS Filing Status Exemption AMTI Phase-Out Single $53,900 $119,700 Married filing jointly $83,800 $159,700 Married filing separately $41,900 $79,850 Trusts and estates $23,900 $79,850 2016 AMT RATES AMTI up to $186,300 26% AMTI over $186,300 28% 2016 CHILD TAX CREDIT Modified AGI Beginning Phase-Out Range for Child Tax Credit Married Filing Jointly $110,000 Single/Head of Household $75,000 Married Filing Separately $55,000 Phase-out complete when MAGI exceeds applicable threshold by $20,000/child
2016 EDUCATION PHASE-OUTS EE bonds for education - exclusion phase-out Single $77,550 - $92,550 Married filing jointly $116,300 - $146,300 Coverdell Education Savings Account- contribution phase-out Single $95,000 - $110,000 Married filing jointly $190,000 - $220,000 Lifetime Learning Credit - AGI phase-out Single $55,000 - $65,000 Married filing jointly $110,000 - $130,000 American Opportunity Tax credit - AGI phase-out Single $80,000 - $90,000 Married filing jointly $160,000 - $180,000 Education loan interest deduction - AGI phase-out Single $65,000 - $80,000 Married filing jointly $130,000 - $160,000