Appendix A

2016 Tax Rates

1.   The Personal Exemption for 2016 is $4,050:

Personal Exemptions start to Phase Out for Single with AGI of $259,400–$381,900 and Married with AGI of $311,300–$433,800.

2.   Itemized Deductions start to Phase Out for Singles with AGI of $259,400 and Married with AGI of $311,300.

3.   $1,000 tax credit for each dependent child under age 17:

The credit is phased out by $50 for every $1,000 above the following thresholds;

a) $75,000 for single taxpayers b) $110,000 for married joint filing

4.   For 2016, Long Term Capital Gains & Dividends are taxed at the maximum rate of:

•   0% for taxpayers in 10%–15% tax bracket

•   15% for taxpayers in 25%, 28%, 33% & 35% tax brackets

•   20% for taxpayers in 39.6% tax bracket

Plus 3.8% Medicare Surcharge on Net Investment Income for Threshold Income of over $200,000 for singles and over $250,000 for married

2016 Social Security Taxes for Self-Employed and Employees

Total taxes paid by Bolen, a single sole proprietor who earned $80,000 taxable income

*As of 2014, all wages and self-employed income in excess of $200,000 for single individuals and $250,000 for married taxpayers (threshold amounts) have been subject to an additional 0.9 percent Medicare surcharge on the excess earnings over these threshold amounts. In addition, investment earnings, such as capital gains, dividends, interest, and rents, have been hit with a 3.8 percent Medicare surcharge on the lesser of the amount of these investments or the excess earnings over the threshold amounts.