Thomson Reuters Releases Projection of 2016 US Income Tax Rates

September 16, 2015
Dana Greenstein

NEW YORK, September 16, 2015 – A Thomson Reuters special report, Projected 2016 Inflation-Adjusted Tax Brackets and Other Key Figures, demonstrates that, despite modest inflation in the past year, tax brackets will be adjusted upward in 2016, easing the tax burden slightly for many taxpayers. The adjustments prevent the loss of tax benefits due solely to inflation.

The report provides a detailed projection of inflation-adjusted income tax brackets, standard deduction and exemption amounts, and many other tax items for 2016 to equip professionals, their clients, and compliance software developers with information needed for tax planning and preparation.

The report, which is based on calculations derived from the most recent Consumer Price Index data published by the Bureau of Labor Statistics, released on September 16, 2015, includes projections for income tax rate schedules for single filers, married filing jointly, married filing separately, head of household and surviving spouses, taxable income brackets for estates and trusts, and standard deductions.

According to the report, the minimum gross income thresholds for filing in 2016 have increased a bit. They are based on the basic standard deduction, which increases for heads of household, the additional deduction, and the exemption amounts, which will increase to $4,050. Also notable is the starting point for the phasing out of taxpayers’ personal exemptions, ranging from $311,300 for spouses filing jointly/surviving spouses and $285,350 for heads of household to $259,400 for single taxpayers.

The same higher dollar thresholds will apply to the phaseout of itemized deductions. That’s compared to this year, when phaseouts began at $309,900 of adjusted gross income for joint filers, $284,050 for heads of household, and $258,250 for singles. The higher phaseout levels prevent inflation from eating into the value of these deductions.

The special report is available for download at no cost at tax.thomsonreuters.com/2016taxrates.

The leading global brand of knowledge solutions for tax and accounting professionals, Thomson Reuters Checkpoint is a robust, comprehensive, and interactive offering that provides integrated research, editorial insight, productivity tools, online learning and news updates along with intelligent links to related content and software. With our respected content, Checkpoint is relied on by thousands of tax and accounting professionals, including 97 of the Top 100 U.S. law firms, 99 of the Fortune 100 companies, and 100 of the top 100 U.S. CPA firms.

Thomson Reuters

Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. We combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial and risk, legal, tax and accounting, intellectual property and science and media markets, powered by the world’s most trusted news organization. For more information, go to www.thomsonreuters.com.

Contact

Dana Greenstein
Public Relations Manager
Tax & Accounting
Thomson Reuters
+1 201 536 4397
dana.greenstein@thomsonreuters.com

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