Form 1040 Update for 2016

State & Local Sales Tax Deduction Claimed as Itemized Deductions is extended indefinitely.

Mortgage Insurance Premiums as Deductible Interest on Itemized Deductions is extended through 2016.

Personal Exemption is $4,050 but Phased-Out if your Adjusted Gross Income (AGI) is between:

  • Married Filing Jointly $311,300 to $433,800
  • Individuals $259,400 to $381,900

Standard Deduction:

  • Married Filing Jointly $12,600 (Blind or over 65 add $1,250)
  • Head of Household $9,300
  • Individuals $6,300 (Blind or over 65 add $1,550)

The American Opportunity Credit (AOTC) is extended indefinitely.

  • The credit is $2,500 per student
  • It is available for 4 years of postsecondary education
  • The credit is a 40% refundable credit
  • The phase-out range is:
    • Single Filers $80,000 to $90,000
    • Joint Filers $160,000 to $180,000

Qualified Tuition and Related Expense Deduction (up to $4,000 can be deducted) is extended through 2016.

Teacher's Classroom Expense Deduction of $250 is extended indefinitely. The $250 limit will be adjusted for inflation starting with the 2016 tax year.