Tax brackets for 2015 filing, 2016 planning
Friday, January 08, 2016
Here's one of the fun things about taxes -- and no, I am not using "fun" and "taxes" in the same sentence because the 2016 filing season has already driven me to drink (that'll come later) -- you need to think about two tax years simultaneously.
It's the 2016 tax filing season, but it's our 2015 tax returns that we focus on finishing.
The annual meeting of two tax years also is apparent in the income tax brackets. These Internal Revenue Service tables show us how much of our money will be taxed at what rates. The IRS usually issues the upcoming year's tax bracket inflation adjustments in the fall, so suddenly we're presented with two different tax tables.
It's easy to confuse the tables for the two tax years. Don't. It will really mess up your current return, which covers the last year, and wreak havoc on your tax planning for this tax year.
2015 tax table: Remember, the confusing term "2016 filing season" simply means this is the year in which you file your 2015 taxes, which for most of us are due this year by April 18.
To get an idea of what that eventual filing tax bill might be, you'll want to look at 2015's tax rates and income brackets. Here are those figures:
2015 tax rates and income brackets
| Tax Rate | Single | Head of Household | Married Filing Jointly or Surviving Spouse |
Married Filing Separately |
| 10% | Up to $9,225 | Up to $13,150 | Up to $18,450 | Up to $9,225 |
| 15% | $9,226 to $37,450 |
$13,151 to $50,200 |
$18,451 to $74,900 |
$9,226 to $37,450 |
| 25% | $37,451 to $90,750 |
$50,201 to $129,600 |
$74,901 to $151,200 |
$37,451 to $75,600 |
| 28% | $90,751 to $189,300 |
$129,601 to $209,850 |
$151,201 to $230,450 |
$75,601 to $115,225 |
| 33% | $189,301 to $411,500 |
$209,851 to $411,500 |
$230,451 to $411,500 |
$115,226 to $205,750 |
| 35% | $411,501 to $413,200 |
$411,501 to $439,000 |
$411,501 to $464,850 |
$205,751 to $232,425 |
| 39.6% | $413,201 or more | $439,001 or more | $464,851 or more | $232,426 or more |
2016 tax table: Meanwhile, you need to be aware of where you'll stand tax-wise for 2016 so you can make the appropriate tax-saving moves this year.
The same seven tax rates still apply for 2016, but the income that falls into each has been adjusted a bit for inflation. Here are those slightly increased income amounts:
2016 tax rates and income brackets
| Tax Rate | Single | Head of Household | Married Filing Jointly or Surviving Spouse |
Married Filing Separately |
| 10% | Up to $9,275 | Up to $13,250 | Up to $18,550 | Up to $9,275 |
| 15% | $9,276 to $37,650 | $13,251 to $50,400 | $18,551 to $75,300 |
$9,276 to $37,650 |
| 25% | $37,651 to $91,150 | $50,401 to $130,150 | $75,301 to $151,900 | $37,651 to $75,950 |
| 28% | $91,151 to $190,150 | $130,151 to $210,800 | $151,901 to $231,450 | $75,951 to $115,725 |
| 33% | $190,151 to $413,350 | $210,801 to $413,350 | $231,451 to $413,350 | $115,726 to $206,675 |
| 35% | $413,351 to $415,050 | $413,351 to $441,000 | $413,351 to $466,950 | $206,676 to $233,475 |
| 39.6% | $415,051 or more |
$441,001 or more |
$466,951 or more |
$233,476 or more |
If you're interested in more tax year data, the ol' blog's special page lets you look back at tax rates and income brackets through the years.
Weekly round-up of daily tax tips: This juggling of two tax years simultaneously can be challenging. But it's necessary to take the most tax advantage out of both years.
These tables of the 2015 and 2016 tax rates and income brackets also are today's Daily Tax Tip.
And just like I did last year, on Fridays I'll provide links to all of the week's tips. Here's the first collection:
- 2016 filling season opens on Jan. 19 (Jan. 4),
- 10 New Year's tax resolutions (Jan. 5),
- 10 top tax issues for 2016 (Jan. 6),
- Getting organized for the tax filing season (Jan. 7), and today's
- Income tax rates and earnings brackets (Jan. 8).
Special tax tip pages: And if you happen to miss a Friday tax tips round-up, no worries. You can find all the tips on their special monthly pages.
Since this is the first week of tax tips, January's running tax tips list just has these five. But it has some info on the Daily Tax Tip process. And when the February, March and April tips go live, the January page will have links to them.
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