Tax Calculator Usa 2016 Including Foreign Income
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Reviewed by Calculator Editorial Team
Calculate your 2016 US federal and state taxes including foreign income with this comprehensive tax calculator. The calculator follows IRS formulas and state tax tables for accurate results. It includes foreign income exclusion rules and provides a breakdown of your tax liability.
How to Use This Calculator
Enter your total taxable income, select your filing status, and enter any foreign income you received. The calculator will compute your federal and state taxes based on 2016 tax rates and foreign income rules.
Formula Used
Federal Tax = (Taxable Income - Standard Deduction) × Federal Tax Rate
State Tax = (Taxable Income - State Deduction) × State Tax Rate
Total Tax = Federal Tax + State Tax
After entering your details, click "Calculate" to see your estimated tax liability. The results will show your federal tax, state tax, and total tax owed. You can also view a chart showing the breakdown of your taxes.
Federal Tax Rates for 2016
The 2016 federal tax rates are progressive, meaning your tax rate increases as your income increases. The standard deductions are also provided for each filing status.
| Tax Bracket | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 10% bracket | $0 - $9,275 | $0 - $18,550 | $0 - $9,275 | $0 - $13,250 |
| 15% bracket | $9,276 - $37,650 | $18,551 - $75,300 | $9,276 - $37,650 | $13,251 - $50,400 |
| 25% bracket | $37,651 - $91,150 | $75,301 - $151,900 | $37,651 - $91,150 | $50,401 - $130,150 |
| 28% bracket | $91,151 - $190,150 | $151,901 - $231,450 | $91,151 - $190,150 | $130,151 - $210,800 |
| 33% bracket | $190,151 - $413,900 | $231,451 - $413,350 | $190,151 - $413,900 | $210,801 - $413,900 |
| 35% bracket | $413,901 - $415,400 | $413,351 - $466,950 | $413,901 - $415,400 | $413,901 - $415,400 |
| 39.6% bracket | $415,401+ | $466,951+ | $415,401+ | $415,401+ |
The standard deductions for 2016 were:
- Single: $6,350
- Married Filing Jointly: $12,700
- Married Filing Separately: $6,350
- Head of Household: $9,350
State Tax Rates for 2016
State tax rates vary significantly across the United States. The calculator uses the average state tax rates for 2016. Note that some states have different tax brackets and deductions.
| State | Tax Rate | Standard Deduction |
|---|---|---|
| California | 1-13.3% | $4,234 |
| New York | 4-10.9% | $8,000 |
| Texas | 0-4.47% | $12,400 |
| Florida | 0-2.4% | $2,000 |
| Illinois | 1-4.95% | $3,650 |
For a more accurate calculation, you should check your specific state's tax rates and deductions.
Foreign Income Rules
The IRS has specific rules for foreign income. Generally, foreign income is taxable in the United States unless it meets certain exclusion criteria.
Foreign Earned Income Exclusion
For 2016, the foreign earned income exclusion was $101,900 for single filers and $199,000 for married filers. This amount is excluded from taxable income.
Other foreign income exclusions include:
- Pensions and annuities
- Interest and dividends
- Royalties
- Rents
Foreign income that is not excluded is subject to US federal and state taxes.
Example Calculation
Let's calculate the taxes for a single filer with $50,000 in taxable income and $20,000 in foreign income.
Example Calculation Steps
1. Apply the foreign earned income exclusion: $20,000 - $10,190 = $9,810 excluded
2. Calculate taxable income: $50,000 - $9,810 = $40,190
3. Apply federal tax rate (15% for $40,190): $40,190 × 0.15 = $6,028.50
4. Apply state tax rate (average 5%): $40,190 × 0.05 = $2,009.50
5. Total tax: $6,028.50 + $2,009.50 = $8,038.00
In this example, the total tax owed is $8,038.00.
Frequently Asked Questions
- How accurate is this tax calculator?
- The calculator provides an estimate based on 2016 tax rates and formulas. For exact figures, consult a tax professional or use official IRS forms.
- Does this calculator include all state taxes?
- The calculator uses average state tax rates. For precise state tax calculations, check your specific state's tax laws and use state-specific tax forms.
- What is the foreign earned income exclusion?
- The foreign earned income exclusion is an amount of foreign income that is not subject to US federal income tax. For 2016, it was $101,900 for single filers and $199,000 for married filers.
- Can I use this calculator for 2017 or later years?
- This calculator is specifically for 2016 tax calculations. For current years, use a tax calculator designed for the current tax year.
- How do I report foreign income to the IRS?
- You must report all foreign income on your US tax return. Use Form 2555 if you have significant foreign income or tax.