The first step in tax planning is knowing the rates and rules.
Changes in tax rates and tax rules may have an effect on both your tax and investment strategies. Find the information you need on Tax Rates 2016 quickly and easily using this webpage as your starting point.
Current tax rates and rules.
Federal income tax brackets
Knowing your tax bracket(s) can help you understand the impact of your financial decisions.
Capital gains tax
The amount of capital gains tax you’re required to pay depends on your tax bracket(s) and how long you’ve owned an investment prior to selling it at a profit.
Alternative minimum tax (AMT)
The hard truth is that there’s no easy way to know if you’re subject to the AMT. Learn about some common triggers.
Medicare and Social Security taxes
Health care legislation passed in 2013 increased Medicare payroll withholding and applied an additional 3.8% surtax on net investment income for certain individuals. See if you’re affected.
Estate and gift taxes
A smart gifting strategy can help you minimize taxes. Keep in mind, however, that gifting affects your estate tax exemption.
IRA and 401(k) tax rates, rules, and limits
Contributing to a traditional 401(k) reduces your taxable income. Find out if you’re also eligible to contribute to an IRA or if a Roth 401(k) makes sense for you.
Coverdell Education Savings Account (ESA) and 529 plan tax rates and rules
Saving for your child’s education can be advantageous from a tax standpoint. Learn about the advantages and limitations of both ESAs and 529 plans.
Foreign tax credit
U.S. tax law allows you to claim either an itemized deduction or a tax credit on investment income from foreign investments, so you can avoid double taxation.
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Clients of independent investment advisors: You may also contact your advisor or call Schwab Alliance at 800-515-2157.
Where specific advice is necessary or appropriate, Schwab recommends consultation with a qualified tax advisor, CPA, financial planner or investment manager. Schwab does not provide legal or tax advice.
Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.