Tax Facts

Filing Due Dates
Form 1040 Tax Return 4/18/2016
Form 4868 Extension 4/18/2016
Form 1040 Tax Return on Extension 10/17/2016
Form 1040ES – Estimated tax – 1st Installment 4/18/2016
Form 1040ES – Estimated tax – 2nd Installment 6/15/2016
Form 1040ES – Estimated tax – 3rd Installment 9/15/2016
Form 1040ES – Estimated tax – 4th Installment 1/16/2017
Filing Status
Marital Status Conditions


Single Never married – no dependents S
Never married – with dependents (conditions apply) HH
Married Living together or apart as of 12/31/2015 MJ / MS
Separated (not legally) with dependents HH
Widowed Before 1/1/15, didn’t remarry in 2015, no dependents S
In 2015, didn’t remarry in 2015 MJ
Before 1/1/14, didn’t remarry in 2015, with dependents HH / QW
Spouse died in 2012, 2013, or 2014, and didn’t remarry in 2015 and:
1) taxpayer was eligible to file joint in year of death
2) dependent children lived with taxpayer for all of2015
3) paid more than 50% to maintain home for dependents
Divorced/Legally Separated No dependents S
With dependents (conditions apply) HH
Separated (not legally) Living apart as of 12/31/2015 MJ / MS
If all conditions below apply:
1) both spouses file separate tax returns
2) taxpayers lived apart the last 6 months of 2015
3) paid more than 50% to maintain a home in 2015
4) home was the main home for child for more than 6 months in 2015
5) either spouse can claim child as dependent
Filing Requirements
If the taxpayer’s filing status is:

and at the end of 2015 the taxpayer was:

the taxpayer must file a tax return if his gross income was at least:

Single under 65 $10,300
65 or older * $11,850
Married, living together at the end of 2015 and filing jointly both spouses under 65 $20,600
one spouse 65 or older * $21,850
both spouses 65 or older* $23,100
Married, living together at the end of 2015, and filing separately any age $4,000
Married and living apart at the end of 2015 any age


Head of Household under 65 $13,250
65 or older * $14,800
Qualifying widow(er) with dependent child under 65 $16,600
65 or older * $17,850
* Age 65 or older – even if if born on 1/1/1951.
Standard Deductions

If the taxpayer’s filing status is:

The standard deduction is:

If 65 or over AND/OR blind add for EACH



Married filing a joint tax return or Qualifying widow(er) with dependent child



Married filing a separate tax return


Head of Household


Dependent Children(1) The greater of $1,050 OR the amount of earned income, plus $350. Not to exceed $6,300 unless the dependent is blind. If blind add $1,550.
(1) The reduced standard deduction rule for dependents applies to dependents who can be claimed on another tax return regardless of whether or not they actually are claimed.
Personal Exemptions
Number of Exemptions Allowed Deduction Number of Exemptions Allowed Deduction
1 $4,000 6 $24,000
2 $8,000 7 $28,000
3 $12,000 8 $32,000
4 $16,000 9 $36,000
5 $20,000 10 $40,000
Earned Income Credit
Earned Income Includes The Following:

  • Wages, salaries, and tips
  • Commissions
  • Jury Duty pay
  • Union strike benefits
  • Long-term disability pensions received prior to minimum retirement age
  • Net earnings from self employment

Earned Income Does Not Include The Following:

  • Interest and dividends
  • Social security and railroad retirement benefits
  • Welfare benefits
  • Pensions or annuities
  • Veterans’ benefits (including VA rehabilitation payments)
  • Workers’ compensation benefits
  • Alimony
  • Child support
  • Unemployment compensation (insurance)
  • Taxable scholarship or fellowship grants that were not reported on Form W-2
  • Variable housing allowance for the military
  • Earnings for work performed while an inmate at a penal institution.

A Qualifying Child Must:

  • be a son, daughter, stepchild, adopted/foster child, brother, sister, stepbrother, stepsister, or a descendent of any of them (i.e. grandchild)
  • be under age 19, or under age 24 and a full time student (enrolled full time during any 5 months)
  • be any age if permanently disabled
  • not provide more than one-half of his or her own support
  • have lived with the taxpayer for more than 6 months in the United States, except in the case of newborns and adoption. A full year is required for foster care
  • have an SSN, unless the child was born and died during the tax year
  • be younger than the person claiming him/her
  • not have filed a joint tax return other than to claim a refund

To Qualify, All Of The Following Tests Must Be Met:

  • the taxpayer must have earned income
  • the taxpayer’s filing status cannot be married filing separately
  • the taxpayer cannot be the qualifying child of another person
  • the taxpayer must include his SSN on the return, and if married, that of his spouse
  • earned income and AGI must each be less than: 
Number of children Single Married Filing Jointly
No qualifying children $14,820 $20,330
One qualifying child $39,131 $44,651
Two qualifying children $44,454 $49,974
More than two qualifying child $47,747 $53,267

Disqualified income
The taxpayer is not eligible for the earned income credit if he had “disqualified income” exceeding $3,400. Disqualified income includes both taxable and tax exempt interest, dividends, net rent and royalty income, net capital gains, and net passive income that is not self employment income.

Claiming The Earned Income Credit Without A Qualifying Child
If the taxpayer does not have a qualifying child, then the taxpayer must

  • have earned income as detailed above
  • have a main home in the US for more than six months of the tax year
  • be at least 25 years old, but under age 65, at the end of the tax year. On joint returns either spouse may satisfy this test
  • file a joint tax return if married, unless the taxpayers lived apart for the last six months of the tax year, and this taxpayer qualifies to file as Head of Household
  • not be the dependent or qualifying child of another taxpayer. This rule includes a spouse
  • include his SSN on the return, and if married, that of his spouse

Tie-Breaker Rules
If both parents are eligible to claim the credit for the same qualifying child and they do not file a joint return the parent with whom the child resided for the longer period of time during the tax year claims the credit. If the child lived with each parent for the same amount of time the parent with the higher AGI claims the credit.

If a parent and one or more non-parents are entitled to claim the child as a qualifying child, only the parent may claim the credit. If none of the persons entitled to claim the child are a parent the person with the higher AGI claims the credit.

Married Children
If the taxpayer’s child was married at the end of the tax year, he or she can be the taxpayer’s qualifying child only if the taxpayer can claim an exemption for the child.

Nonresident Aliens
An individual who is a nonresident alien for any part of the tax year is not eligible for the credit unless he or she is married and an election is made by the couple to have all of their worldwide income subject to U.S. income tax.

Standard Mileage Rates
Type of Mileage 2015 2014
Business* 57.5¢ per mile 56.0¢ per mile
Medical/Moving 23¢ per mile 23.5¢ per mile
Charitable 14¢ per mile 14¢ per mile
*These tax deductible rates are available for individuals who own the vehicle and operate only one vehicle for business purposes at a time. The election to use this method must be made during the first tax year the vehicle is used for business.
Travel Expenses
The following travel expenses may be tax deductible:
Expense Description
Transportation The cost of travel by airplane, train, bus, or car between your home and your business destination.
Taxi, commuter, bus & limousine Fares for these and other types of transportation between the airport or station and your hotel or between the hotel and your work location away from home.
Baggage & shipping The cost of sending baggage or display material between your regular and temporary work locations.
Car The cost of operating and maintaining your car when traveling away from home on business. You may deduct actual expenses or the standard mileage rate, including business-related tolls and parking on your tax return. If you lease a car while away form home on business, you can deduct on your tax return business-related expenses only.
Lodging The cost of lodging if your business trip is overnight or long enough to require you to get substantial sleep or rest to properly perform your duties.
Meals The cost of meals only if your business trip is overnight or long enough to to require you to get substantial sleep or rest. Includes amounts spent for food, beverages, taxes, and related tips.
Cleaning Cleaning and laundry expenses while away from home overnight.
Telephone The cost of business calls while on your business trip, including business communication by fax machine or other communication devices.
Tips Tips you pay for any expenses in this chart.
Other Other similar ordinary and necessary expenses related to your business travel such as public stenographer’s fees and computer rental fees.
Foreign Earned Income Exclusion

Tax Year

Excludable amount
1998 $72,000
1999 $74,000
2000 $76,000
2001 $78,000
2002-2005 $80,000
2006 $82,400
2007 $85,700
2008 $87,600
2009 $91,400
2010 $91,500
2011 $92,900
2012 $95,100
2013 $97,600
2014 $99,200
2015 $100,800
Future Years Indexed for Inflation

Itemized Deductions

Casualty and Theft Loss Rules
These tax rules apply to a casualty or theft loss of nonbusiness property.

$100 Rule

10% Rule

Definition of Rule You must reduce each casualty or theft loss by $100 when figuring your tax deduction. Apply this rule afteryou reduce your loss by any reimbursement. You must reduce your total casualty or theft loss by 10% of your adjusted gross income. Apply this rule afteryou reduce each loss by any reimbursement and by $100 (the $100 Rule).
Single Event Apply this rule only once, even if many pieces of property are affected. Apply this rule only once, even if many pieces of property are affected.
More Than One Event Apply this rule to the loss from eachevent. Apply the rule to the total of all your losses from all events.
More Than One Person
With loss from the same event (other than a married couple filing jointly.)
Apply the rule separately to each person. Apply the rule separately to each person.
Married Couple
with loss from the same event:

Apply this rule as if you were one person.Apply this rule separately to each spouse.


Apply this rule as if you were one person.

Apply this rule separately to each spouse.

Filing joint IRS tax returnFiling separate IRS tax return


More Than One Owner
(other than a married couple filing jointly.)
Apply this rule separately to each owner of jointly owned property. Apply this rule separately to each owner of jointly owned property.
Charitable Contributions
Use the following list for a quick check of charitable contributions you can or cannot deduct on tax returns. Consult Publication 17 for more information and additional rules or limitations that may apply.
Deductible as Charitable Contributions NOT Deductible as Charitable Contributions
Money or property for:

  • A student living with you, sponsored by a qualified organization.
  • Churches, synagogues, temples, mosques and other religious organizations.
  • Dues, fees, and assessments paid to qualified organizations above the value of benefits received.
  • Fair market value of used clothing and furniture
  • Federal, state and local governments, if you contribution is solely for public purposes (for example, a gift to reduce the public debt.)
  • Fraternal orders (if used for qualified purposes)
  • Nonprofit schools and hospitals
  • Nonprofit medical research organizations
  • Out of pocket expenses when you serve a qualified organization as a volunteer.
  • Public parks and recreation facilities.
  • Salvation Army, Red Cross, CARE, Goodwill Industries, United Way, Boy Scouts, Girl Scouts, Boys and Girls Clubs of America, World Wildlife Fund, etc.
  • The part of a contribution above the fair market value for items such as merchandise and tickets to charity balls or sporting events
  • Un-reimbursed transportation expenses that relate directly to the services provided for the organization
  • Upkeep of uniforms that have no general use but must be worn while performing services donated to a charitable organization
  • War veterans’ groups and certain cultural groups.
Money or property for:

  • Civic leagues and associations, business organizations, social and sports clubs, labor unions, and Chambers of Commerce.
  • Raffle, bingo or lottery tickets.
  • Dues, fees, or bills paid to country clubs, lodges, fraternal orders, or similar groups.
  • Foreign organizations (except certain Canadian and Mexican charities).
  • Groups that are run for personal profit.
  • Groups whose purpose is to lobby for law changes.
  • Homeowners’ associations
  • Individuals
  • Political groups or candidates for public office.
  • Sickness or burial expenses for members of a fraternal society.
  • Value of blood given to a blood bankor Red Cross..
  • Value of your time or services.


Deductibility of Taxes

You CAN deduct the
following taxes

You CANNOT deduct the following taxes

Income Tax State and local income tax.
Foreign income tax.
Employee contributions to state funds listed under State benefit funds.
Federal income tax.
Employee contributions to private or voluntary disability plans.
Real Estate Tax State and local real estate tax.
Foreign real estate tax.
Tenant’s share of real estate tax paid by cooperative housing corporation.
Tax for local benefits.
Trash and garbage pickup fees.
Rent increase due to higher real estate tax.
Homeowners association charges.
Personal Property Tax State and local personal property tax.
Sales Tax State and Local sales taxes are deductible provided you make the election on Schedule A, line 5, to claim them in lieu of State and Local income taxes.
Other Tax Tax that is an expense of your trade or business or producing income.
One half of self employment tax paid.
Tax on property producing rent or royalty income.
Occupational tax.
Taxes on alcoholic beverages, cigarettes, and tobacco. Taxes on gasoline, diesel, and other motor fuels used in a non-business vehicle. Federal social security (FICA), railroad retirement, gift, and excise taxes or customs duties. (See IRSPublication 17 for details.)
Fees and Charges Fees and charges, such as those for driver’s, hunting, fishing, or dog licenses; or water, sewer, and utility taxes or bills, generally are not tax deductible. (See IRSPublication 17 for details.)
Home Mortgage Interest
Home mortgage interest is generally deductible provided:

  • the loan is secured by a principal residence or second home
  • acquisition debt for transactions entered into after 10/13/87 does not exceed $1,000,000
  • home equity debt does not exceed the lesser of $100,000 or the fair market value of the home

The $1,000,000 limit is inclusive of all of the above.

Medical and Dental Expenses

You CAN deduct the following…

You CANNOT deduct the following…

  • Admission and transportation to a medical conference relating to the chronic disease of a dependent, if it is primarily for and essential to the care of the dependent 
  • Birth control pills prescribed by your doctor
  • Capital expenses for equipment or improvements to your home needed for medical care, or to make the home suitable for a disabled person. (See IRS tax Publication 502)
  • Cost and care of guide dogs or other animals aiding the blind, deaf or disabled.
  • Cost of lead-based paint removal (See IRS tax Publication 502)
  • Dental and orthodontic care
  • Expenses of an organ donor.
  • Hospital services fees (lab work, therapy, nursing services, surgery, etc.)
  • Legal abortion
  • Legal operation to prevent having children.
  • Meals and lodging provided by a hospital during medical treatment.
  • Medical, hospital, dental and long-term care insurance premiums (subject to the age limits) (See IRS tax Publication 17 for details).
  • Medical services fees (from doctors, dentists, surgeons, specialists, and other medical practitioners.)
  • Medicare A premiums for persons not enrolled in Social Security, and Medicare B premiums
  • Oxygen equipment and oxygen
  • Part of life-care fee paid to retirement home designated for medical care.
  • Prescription medicines (those requiring a prescription by a doctor for their use by an individual) and insulin.
  • Psychiatric care at a specially equipped medical center (includes meals and lodging.)
  • Social Security tax, Medicare tax, FUTA, and state employment tax for worker providing medical care (See Wages for nursing services below.)
  • Special items (artificial limbs, false teeth, eyeglasses, contact lenses, hearing aids, crutches, wheelchairs, braces, etc.)
  • Special school or home for mentally or physically disabled persons (see IRS taxPublication 502 for details).
  • Stop smoking programs, including cost of prescription drugs designed to alleviate nicotine withdrawal.
  • Transportation for needed medical care at the IRS published rate per mile, or actual out-of-pocket expenses, plus parking fees and tolls. (See IRS tax Publication 17 for details).
  • Treatment at drug or alcohol center (includes meals and lodging provided by the center.)
  • Wages for nursing services ( see IRS taxPublication 502)
  • Weight-loss programs to treat obesity and other diseases diagnosed by a physician
  • Diaper service
  • Diet foods
  • Expenses for your general health (even if following your doctor’s advice. However if you doctor has recommended a program as treatment for a specific condition, the IRS has indicated that the cost would be deductible) such as

– Health club dues
– Household help (even if recommended by a doctor.)
– Social activities, such as dancing or swimming lessons.
– Trip for general health improvement.
– Weight loss program.

  • Funeral, burial or cremation expenses.
  • Illegal operation or treatment.
  • Life insurance or income protection policies, or policies providing payment for loss of life, limb, sight, etc.
  • Maternity clothes
  • Meals and lodging while attending a medical conference related to the chronic disease of a dependent
  • Medical expenses paid from a medical savings account (MSA).
  • Medical expenses paid from a flexible savings account (FSA)
  • Medical insurance included in a car insurance policy covering all persons injured in or by your car.
  • Medical insurance premiums paid with pre-tax dollars
  • Medicine you buy without a prescription.
  • Nonprescription drugs or medicines.
  • Nonprescription nicotine gum, patches, or lozenges.
  • Nursing home policies, if the policy ensures a maximum out-of-pocket expense per day.
  • Babysitting, childcare, and nursing care for a healthy baby.
  • Payroll tax paid for Medicare A.
  • Surgery for purely cosmetic reasons.
  • Toothpaste, toiletries, cosmetics, etc.