2016 Tax Change Information
What you need to know
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Personal Exemption
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Each person or dependent exemption is worth $4,050
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Standard Deduction:
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$12,600 for married couples filing a joint return or widows
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$6,300 for singles and married individuals filing separate returns
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$9,300 for heads of household
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An additional amount of $1,250 for those who are 65 and older or who may be blind
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Income Tax Brackets:
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Federal: 10%, 15 %, 25%, 28%, 33%, 35%, 39.6%
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Colorado: 4.63%
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Maximum credit:
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$6,143 with three or more qualifying children
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$5,460 with two qualifying children
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$3,305 with one qualifying child
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$496 with no qualifying children
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**Investment income must be $3,350 or less for the year.**
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Capital Gains:
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Tax on capital gains for:
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individuals in a 10% or 15% income tax bracket 0%
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individuals in a 25%, 28%, 33%, or 35% income tax bracket 15%
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individuals in a 39.6% income tax bracket 20%
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Collectibles 28%
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Estate Tax rises to $5.45 million in value exempted for individual estates and the annual Gift Tax exclusion (Per Doner) is $14,000
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IRA Contributions:
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Traditional IRA contribution limit cannot be more than $5,500 ($6,500 if you're 65 or older)
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Deferred Retirement Accounts:
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401(k), 403(b),: $18,000
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Additional contribution if 50 or over: $3,000
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Standard Mileage Rate:
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Business use: 54 cents per mile
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Medical reasons or qualified move: 19 cents per mile
- Charitable purposes: 14 cents per mile
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