Marginal Tax Rate Calculator (Tax Year 2016)
Marginal Tax Rate Calculator (Tax Year 2016) Definitions
- Federal Income Tax Rates
- Wages, salaries, tips, etc.
- This is your total taxable income for the year after deductions for retirement contributions such as 401(k)s, IRAs, etc. For tax filing purposes this would be the same as your Adjusted Gross Income (however the calculator is unable to take lower capital gains taxes into consideration).
- Filing status
- Choose your filing status. Your filing status determines the income levels for your Federal tax bracket. It is also important for calculating your standard deduction, personal exemptions, and deduction phase out incomes. The table below summarizes the five possible filing status choices. It is important to understand that your marital status as of the last day of the year determines your filing status.
Filing Status Married Filing Jointly If you are married, you are able to file a joint return with your spouse. If your spouse died during the tax year, you are still able to file a joint return for that year. You may also choose to file separately under the status "Married Filing Separately". Qualified Widow(er) Generally, you qualify for this status if your spouse died during the previous tax year (not the current tax year) and you and your spouse filed a joint tax return in the year immediately prior to their death. You are also required to have at least one dependent child or stepchild for whom you are the primary provider. Single If you are divorced, legally separated or unmarried as of the last day of the year you should use this status. Head of Household This is the status for unmarried individuals that pay for more than half of the cost to keep up a home. This home needs to be the main home for the income tax filer and at least one qualifying relative. You can also choose this status if you are married, but didn't live with your spouse at anytime during the last six months of the year. You also need to provide more than half of the cost to keep up your home and have at least one dependent child living with you. Married Filing Separately If you are married, you have the choice to file separate returns. The filing status for this option is "Married Filing Separately".
For 2016, the standard deductions are $12,600 for married couples filing jointly, $6,300 for married couples filing separately and singles, and $9,300 for heads of household.
- Are you someone's dependent?
- Choose 'no' if no one can claim you or your spouse as a dependent. Choose 'yes' if someone can claim you as a dependent. Choose "Both you and your spouse" if you both are dependents. (You are a dependent if someone supports you and can claim a dependency exemption for you.)
- Number of additional dependents
- A dependent is someone you support and for whom you can claim a dependency exemption. In 2016, each dependent you claim entitles you to receive a $4,050 reduction in your taxable income.
- Dependents qualifying for child tax credit
- You may be entitled to a child tax credit for each qualifying child who was under age 17 at the end of the year if you claimed an exemption for that child. The credit is, however, phased out at higher incomes.
- Itemized deductions
- This is the total of your itemized deductions that you can include on schedule A of your Federal income taxes. For most people this includes state income taxes paid for the year, interest on a mortgage and any charitable contributions. Other itemized deductions include certain investment expenses, medical expenses exceeding 7.5% of your adjusted gross income, and some moving expenses.
Your standard deduction will be automatically calculated for you based on the filing status and number of dependents you enter. If the number you enter here is lower, your standard deduction will be used to determine your average tax rate.