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
- 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.