Tax Information

Badger & Fox Tax and Businesses offers a full line of tax services.

Serving Individuals, Trusts, Businesses and Estates with tax return preparation and tax planning. We also assist with tax notices and audits by federal, state and local taxing authorities.

Individual tax rates – All the individual marginal tax rates will remain except starting in 2013 a new top rate of 39.6% is imposed on taxable income over $400,000 for single filers, $425,000 for head-of-household filers, and $450,000 for married taxpayers filing jointly ($225,000 for each married spouse filing separately).

IRS standard mileage rates

2016

  • 54 cents per mile for business miles driven
  • 19 cents per mile for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

2015

  • 57.5 cents per mile for business miles driven
  • 23 cents per mile for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

 

Personal exemption increased for certain taxpayers.

For 2016, the personal exemption amount is increased to $4,050 for taxpayers with adjusted gross income at or below $311,300 if married filing jointly or qualifying widow(er), $285,350 if head of household, $259,400 if single, or $155,650 if married filing separately. The personal exemption amount for taxpayers with adjusted gross income above these thresholds may be reduced.

Limitation on itemized deductions.

For 2016, itemized deductions for taxpayers with adjusted gross income above $311,300 if married filing jointly or qualifying widow(er), $285,350 if head of household, $259,400 if single, and $155,650 if married filing separately may be reduced.

Alternative minimum tax (AMT) exemption

The AMT exemption amount is increased to $53,900 ($83,800 if married filing jointly or qualifying widow(er); $41,900 if married filing separately).

Lifetime learning credit income limits

In order to claim a lifetime learning credit, your MAGI must be less than $55,000 ($111,000 if married filing jointly).

Retirement savings contribution

In order to claim this credit for 2016, your MAGI must be less than $30,750 ($61,500 if married filing jointly; $46,125 if head of household).

Adoption credit or exclusion.

The maximum adoption credit or exclusion for employer-provided adoption benefits has increased to $13,460. In order to claim either the credit or exclusion, your MAGI must be less than $241,920.

Earned income credit (EIC).

You may be able to take the EIC in 2016 if:

  • Three or more children lived with you and you earned less than $47,955 ($53,505 if married filing jointly),
  • Two children lived with you and you earned less than $44,648 ($50,198 if married filing jointly),
  • One child lived with you and you earned less than $39,296 ($44,846 if married filing jointly), or
  • A child did not live with you and you earned less than $14,880 ($20,430 if married filing jointly).