Phan Tax Service, LLC | Tax Resource

Frequent Asked Questions

Are unemployment benefits taxable? - Yes, unemployment income is taxable income.

Can I deduct the cost of searching for a job? Are moving expenses for my new job tax deductible? - Job search and moving expenses may be tax-deductible depending on distance and other factors.

Federal Resources

A-Z Index for Business Small Business and Self-Employed Tax Center

Affordable Care Act Learn how the Affordable Care Act will affect your taxes

Payment Look Up Use this feature to check the status, edit or cancel your payment.

IRS Direct Pay Use this secure service to pay your tax bill or make an estimated tax payment directly from your checking or savings account at no cost to you.

Where’s My Amended Return Tool provides the status of Form 1040X Amended Tax Returns for the current year and up to three prior years.

Where's My Refund Quick & easy to check your refund status

State Resources

PA-100 Enterprise Registration The On-line PA-100 may be used to register a new enterprise, add additional taxes or services, or to register a new enterprise that is acquiring all or part of an existing enterprise.

PA Tax Information Find out about specific tax information, such as Act 32 and Property Tax Relief

PA Department of Revenue's e-Services Center Electronic services for individuals & businesses to access filing and payment services

Local Resources

Lancaster County Tax Collection Bureau online resource for individual & employer tax information.

The tax items for 2016 of greatest interest to most taxpayers

Earned Income Credit Refundable tax credit that reduces or eliminates the tax paid.
Tax year 2016 maximum credit:

Personal Exemptions Rises to $4,050, up from $4,000 of the 2015 exemption. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $259,400 ($311,300 for married couples filing jointly). It phases out completely at $381,900 ($433,800 for married couples filing jointly.)
Standard Deduction Rates For 2016 are $12,600 for married taxpayers filing jointly; $9,300 for head of household; $6,300 for individual taxpayers and $6,300 for married taxpayers filing separate. For 2016, the additional standard deduction amount for the aged or the blind is $1,250. The additional standard deduction amount is increased to $1,550 if the individual is also unmarried and not a surviving spouse.

The standard mileage rate for 2016 are

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

Itemized Deductions The limitations on itemized deductions (the Pease limitations, named after former Rep. Don Pease (D-OH)) kick in at $309,900 for married taxpayers filing jointly, $284,050 for head of household, $258,250 for single taxpayers and $154,950 in the case of a married individual filing separately.

Child Tax Credit The tax credit that may be worth as much as $1,000 per qualifying child depending upon your income (the credit amount has not changed).

Hope Scholarship Credit The Hope Scholarship Credit for 2016 will remain an amount equal to 100% of qualified tuition and related expenses not in excess of $2,000 plus 25% of those expenses in excess of $2,000 but not in excess of $4,000. That means that the maximum Hope Scholarship Credit allowable for 2016 is $2,500. Income restrictions do apply and for 2016, those kick in for taxpayers with modified adjusted gross income (MAGI) in excess of $80,000 ($160,000 for a joint return).

Lifetime Learning Credit As with the Hope Scholarship Credit, income restrictions apply to the Lifetime Learning Credit. For 2016, the adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit is $111,000, up from $110,000 for tax year 2015.

Adoption Credit The maximum credit allowable is $13,190. Phase outs apply for taxpayers with modified adjusted gross income over $201,920 and completely phased out for taxpayers with MAGI of $241,920 or more.

Kiddie Tax The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24. For 2016, the threshold for the kiddie tax - meaning the amount of unearned net income that a child can take home without paying any federal income tax - is $1,050. All unearned income in excess of $2,100 is taxed at the parent’s tax rate.

Flexible Spending Accounts The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending accounts is $2,550; $500 Carryover Option Available to Many

Federal Gift Tax Exclusion for 2016, the estate and gift tax exemption is $5.45 million per individual, up from $5.43 million in 2015. That means an individual can leave $5.45 million to heirs and pay no federal estate or gift tax. A married couple will be able to shield $10.9 million from federal estate and gift taxes. The annual gift exclusion remains the same at $14,000.

The Alternative Minimum Tax exemption The amount for tax year 2016 is $53,900 and begins to phase out at $119,700 ($83,800, for married couples filing jointly for whom the exemption begins to phase out at $159,700).

2016 Tax Rate Schedules

Tax rate	Single filers	Married filing jointly or qualifying widow/widower	Married filing separately	Head of household
10%	Up to $9,275	Up to $18,550	Up to $9,275	Up to $13,250
15%	$9,276 - $37,650	$18,551 - $73,300	$9,276- $37,650	$13,251 - $50,400
25%	$37,651 - $61,150	$75,301 - $151,900	$37,651 - $75,950	$50,401 - $130,150
28%	$91,151 - $190,150	$151,901 - $231,450	$75,951 - $115,725	$130,151 - $210,800
33%	$190,151 - $413,350	$231,451 - $413,350	$115,726 - $206,675	$210,801 - $413,350
35%	$413,351 - $415,050	$413,351 - $466,950	$206,676 - $233,475	$413,351 - $441,000
39.6%	$415,051 or more	$466,951 or more	$233,476 or more	$441,001 or more