Accountants: IRS publishes 2016 tax numbers

I thought you might find these 2016 tax numbers published by the IRS and SSA useful in your tax planning sessions with clients over the coming weeks.

  • SOCIAL SECURITY taxable wage limit for 2016 remains the same as the 2015 limit of $118,500. Retirees under full retirement age can earn up to $15,720 without losing benefits.
  • AMT EXEMPTIONS for 2016 increase to $53,900 for singles, $83,800 for couples, and $41,900 for married couples filing separately.
  • 401(k) MAXIMUM salary deferral remains at $18,000 for 2016. The catch-up limit for 50 and older also remains unchanged at $6,000.
  • SIMPLE maximum deferral stays at $12,500 for 2016. The catch-up limit for 50 and older is $3,000.
  • IRA CONTRIBUTION limit remains at $5,500 for 2016 ($6,500 for 50 and older).
  • HSA CONTRIBUTION limits for 2016 will be $3,350 for individuals and $6,750 for families. Those 55 or older can contribute an additional $1,000.
  • KIDDIE TAX threshold for 2016 remains at $2,100.
  • NANNY TAX threshold increases to $2,000 for 2016.
  • ANNUAL GIFT TAX EXCLUSION remains at $14,000.
  • ESTATE TAX EXCLUSION increases from the 2015 amount of $5,430,000 to $5,450,000 for 2016.

M&C has compiled all these numbers and more into the 2016 TAX POCKET GUIDE and 2016 TAX-CUTTING CHECKLIST brochures.

With 2016 tax numbers, deadlines, recordkeeping requirements, and other vital tax information, clients and prospects will refer to these brochures often – keeping your name in front of them all year long.

Call us at 1-800-654-1654 or click to see these effective client brochures.

Arvid Mostad

Arvid Mostad is the co-founder of Mostad & Christensen, Inc. Since 1978, M&C's marketing products have helped accounting firms build client loyalty, get more referrals, add value to services, be visible in their community, and keep clients informed.