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36 years of experience
License No. 0649378 Since 1982

14541 Brookhurst Street, Ste. C-1
Westminster, CA 92683
  Phone: (714) 531-3637
  Mobile: (714) 553-2404
  Fax: (714) 531-3633
  Email: johnlpham@yahoo.com

 
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John Pham & Co.
NPSYS Corporation
14541 BROOKHURST STREET, SUITE C1
WESTMINSTER, CA 92683 License #0649378
Tel. (714) 531-3637 * Fax (714) 531-3633
Email: johnpham@muabaohiem.com
 
  • When Are Taxes Due for an LLC?
This article gives you the tax rates and related numbers that you will need to prepare your 2016 income tax return. In general, 2016 individual tax returns are due by Monday, April 17, 2017.
Corporation
If you elect to treat the LLC as a corporation for tax purposes, you must file an annual IRS Form 1120 by the due date. The due date of the LLCs corporate tax return is the 15th day of the third month following the end of the tax year. You must choose to use either a fiscal or calendar tax year when you file the business's first income tax return. A calendar year requires you to report all income and expenses for the period of Jan. 1 through Dec. 31. A fiscal year is any consecutive 12-month period that ends on a date other than Dec. 31. For example, if the LLC begins operations on July 15 and you elect a calendar year for tax reporting, you can prepare a short-year return for the period of July 15 through Dec. 31 and file it by March 15 of the following year. In all successive tax years, the return is due on March 15 but will cover the tax period of Jan. 1 through Dec. 31.
Partnership
Limited liability companies that are subject to the partnership taxation rules must conform the tax year to the accounting period that the members who own a majority interest in the LLC use. If a majority of the members do not use identical accounting periods, the LLC must use the period that principal partners use. A principal partner is a LLC member having a 5 percent or more interest in the profits or capital of the LLC. If neither rule applies, the LLC must use an accounting period that results in the least aggregate deferral of income to the members. The LLC must file IRS Form 1065 by the 15th day of the fourth month after the tax year ends. For example, if one of the rules requires the LLC to use a tax year of June 1 through May 31, you must file the 1065 and pay all taxes in full by Sept. 15 of each year.
Disregarded Entity
If you are the sole member of the LLC, the business entity is disregarded for tax purposes. Disregarding the LLC requires you to include all income and expenses of the business on a personal tax return. Therefore, the due date of the return is the same day the Form 1040 is due. All individuals must file the tax return and pay all taxes that relate to the LLC by April 15 each year.
Changing Tax Years
You can change the tax year of an LLC that you treat as a corporation or partnership for tax purposes by making an application with the IRS on Form 1128. However, individual taxpayers are ineligible to request the change.
References & Resources
Internal Revenue Service: Publication 538 - Accounting Periods and Methods
 

  • 2016 Federal & CA Tax Rates, Tax Tables, Personal Exemptions, and Standard Deductions
 
2016 Federal Tax Rates, Tax Tables, Personal Exemptions and Standard Deductions
IRS Tax Brackets & Deduction Amounts for Tax Year 2016
 
This article gives you the tax rates and related numbers that you will need to prepare your 2016 income tax return. In general, 2016 individual tax returns are due by Monday, April 17, 2017.
2016 Income Tax Brackets
The Federal income tax has 7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your income level and filing status.
It's important to understand that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.
Single
Taxable Income Tax Rate
$0-$9,275 10%
$9,276-$37,650 $927.50 plus 15% of the amount over $9,275
$37,651-$91,150 $5,183.75 plus 25% of the amount over $37,650
$91,151-$190,150 $18,558.75 plus 28% of the amount over $91,150
$190,151-$ 413,350 $46,278.75 plus 33% of the amount over $190,150
$413,351-$415,050 $119,934.75 plus 35% of the amount over $413,350
$415,051 or more $120,529.75 plus 39.6% of the amount over $415,050
Married Filing Jointly or Qualifying Widow(er)
Taxable Income Tax Rate
$0-$18,550 10%
$18,551-$75,300 $1,855 plus 15% of the amount over $18,550
$75,301-$151,900 $10,367.50 plus 25% of the amount over $75,300
$151,901-$231,450 $29,517.50 plus 28% of the amount over $151,900
$231,451-$413,350 $51,791.50 plus 33% of the amount over $231,450
$413,351-$466,950 $111,818.50 plus 35% of the amount over $413,350
$466,951 or more $130,578.50 plus 39.6% of the amount over $466,950
Married Filing Separately
Taxable Income Tax Rate
$0-$9,275 10%
$9,276-$37,650 $927.50 plus 15% of the amount over $9,275
$37,651-$75,950 $5,183.75 plus 25% of the amount over $37,650
$75,951-$115,725 $14,758.75 plus 28% of the amount over $75,950
$115,726-$206,675 $25,895.75 plus 33% of the amount over $115,725
$206,676-$233,475 $55,909.25 plus 35% of the amount over $206,675
$233,476 or more $65,289.25 plus 39.6% of the amount over $233,475
Head of Household
Taxable Income Tax Rate
$0-$13,250 10%
$13,251-$50,400 $1,325 plus 15% of the amount over $13,250
$50,401-$130,150 $6,897.50 plus 25% of the amount over $50,400
$130,151-$210,800 $26,835 plus 28% of the amount over $130,150
$210,801-$413,350 $49,417 plus 33% of the amount over $210,800
$413,351-$441,000 $116,258.50 plus 35% of the amount over $413,350
$441,001 or more $125,936 plus 39.6% of the amount over $441,000
2016 Personal Exemption Amounts
For tax year 2016, the personal exemption amount is $4,050 (compared to $4,000 in 2015).
You are allowed to claim one personal exemption for yourself and one for your spouse (if married). However, if somebody else can list you as a dependent on their tax return, you are not permitted to claim a personal exemption for yourself.
The personal exemption amount "phases out" for taxpayers with higher incomes. The Personal Exemption Phaseout (PEP) thresholds are as follows:
Filing Status PEP Threshold Starts PEP Threshold Ends
Single $259,400 $381,900
Married Filing Jointly $311,300 $433,800
Married Filing Separately $155,650 $216,900
Head of Household $285,350 $407,850
2016 Standard Deduction Amounts
There are two main types of tax deductions: the standard deduction and itemized deductions. You can claim one type of deduction on your tax return, but not both.
For example, if you claim the standard deduction, you cannot itemize deductions - and vice versa (if you itemize deductions, you cannot claim the standard deduction). You are allowed to use whichever type of deduction results in the lowest tax.
The standard deduction is subtracted from your Adjusted Gross Income (AGI), thereby reducing your taxable income. For tax year 2016, the standard deduction amounts are as follows:
Filing Status Standard Deduction
Single $6,300
Married Filing Jointly $12,600
Married Filing Separately $6,300
Head of Household $9,300
Qualifying Widow(er) $12,600
Note that there is an additional standard deduction for elderly or blind taxpayers, which is $1,250 for tax year 2016. The additional standard deduction amount increases to $1,550 if the individual is also unmarried and not a qualifying widow(er).
 
2016 California Tax Rates, Tax Tables, Personal Exemptions and Standard Deductions
Rate of inflation
The rate of inflation in California, for the period from July 1, 2015, through June 30, 2016, was 2.1%. The 2016 personal income tax brackets are indexed by this amount.
Corporate tax rates
Entity Type Tax Rate
Corporations other than banks and financials 8.84%
Banks and financials 10.84%
Alternative Minimum Tax (AMT) rate 6.65%
S corporation rate 1.5%
S corporation bank and financial rate 3.5%
Individual tax rates
The maximum rate for individuals is 12.3%
The AMT rate for individuals is 7%
The Mental Health Services Tax Rate is 1% for taxable income in excess of $1,000,000.
Exemption credits
Filing Status/Qualification Exemption Amount
Married/Registered Domestic Partner (RDP) filing jointly or qualifying widow(er) $222
Single, married/RDP filing separately, or head of household $111
Dependent $344
Blind $111
Age 65 or older $111
Phaseout of exemption credits
Higher-income taxpayers' exemption credits are reduced as follows:
Filing Status Reduce Each Credit By: For Each: Federal Agi Exceeds:
Single $6 $2,500 $182,459
Married/RDP filing separately $6 $1,250 $182,459
Head of household $6 $2,500 $273,692
Married/RDP filing jointly $12 $2,500 $364,923
Qualifying widow(er) $12 $2,500 $364,923
When applying the phaseout amount, apply the $6/$12 amount to each exemption credit, but do not reduce the credit below zero. If a personal exemption credit is less than the phaseout amount, do not apply the excess against a dependent exemption credit.
Standard deductions
The standard deduction amounts for:
Filing Status Deduction Amount
Single or married/RDP filing separately $4,129
Married/RDP filing jointly, head of household, or qualifying widow(er) $8,258
The minimum standard deduction for dependents $1,050
Reduction in itemized deductions
Itemized deductions must be reduced by the lesser of 6% of the excess of the taxpayer's federal AGI over the threshold amount or 80% of the amount of itemized deductions otherwise allowed for the taxable year.
Filing Status Agi Threshold
Single or married/RDP filing separately $182,459
Head of household $273,692
Married/RDP filing jointly or qualifying widow(er) $364,923
Earned Income Tax Credit
The California earned income tax credit is available to California households with federal adjusted gross income (AGI) of:
Less than $6,718 if there are no qualifying children.
Less than $10,088 if there is one qualifying child.
Less than $14,162 if there are two or more qualifying children.
The maximum amount of investment income to remain eligible for the credit is $3,471.
Nonrefundable Renter's credit
This nonrefundable, non-carryover credit for renters is available for:
Single or married/RDP filing separately with a California AGI of $39,062 or less.
  The credit is $60.
Married/RDP filing jointly, head of household, or qualifying widow(er) with a California AGI of $78,125 or less.
  The credit is $120.
Miscellaneous credits
Qualified senior head of household credit
  2% of California taxable income
  Maximum California AGI of $71,370
  Maximum credit of $1,345
Joint custody head of household credit/dependent parent credit
  30% of net tax
  Maximum credit of $440
AMT exemption
Filing Status Amount
Married/RDP filing jointly or qualifying widow(er) $89,467
Single or head of household $67,101
Married/RDP filing separately, estates, or trusts $44,732
AMT exemption phaseout
Filing Status Amount
Married/RDP filing jointly or qualifying widow(er) $335,502
Single or head of household $251,626
Married/RDP filing separately, estates, or trusts $167,749
FTB cost recovery fees
Fee Type Fee
Bank and corporation filing enforcement fee $100
Bank and corporation collection fee $365
Personal income tax filing enforcement fee $81
Personal income tax collection fee $266
The personal income tax fees apply to individuals and partnerships, as well as limited liability companies that are classified as partnerships. The bank and corporation fees apply to banks and corporations, as well as limited liability companies that are classified as corporations. Interest does not accrue on these cost recovery fees.
 
2016 California Tax Rate Schedules
Schedule X - Single or married/RDP filing separately
IF THE TAXABLE INCOME IS
Over But Not Over Tax Is   Of Amount Over
$0 $8,015 $0.00 plus 1.00% $0
$8,015 $19,001 $80.15 plus 2.00% $8,015
$19,001 $29,989 $299.87 plus 4.00% $19,001
$29,989 $41,629 $739.39 plus 6.00% $29,989
$41,629 $52,612 $1,437.79 plus 8.00% $41,629
$52,612 $268,750 $2,316.43 plus 9.30% $52,612
$268,750 $322,499 $22,417.26 plus 10.30% $268,750
$322,499 $537,498 $27,953.41 plus 11.30% $322,499
$537,498 AND OVER $52,248.30 plus 12.30% $537,498
Schedule Y - Married/RDP filing jointly, or qualifying widow(er) with dependent child
IF THE TAXABLE INCOME IS
Over But Not Over Tax Is   Of Amount Over
$0 $16,030 $0.00 plus 1.00% $0
$16,030 $38,002 $160.30 plus 2.00% $16,030
38,002 $59,978 $599.74 plus 4.00% $38,002
$59,978 $83,258 $1,478.78 plus 6.00% $59,978
$83,258 $105,224 $2,875.58 plus 8.00% $83,258
$105,224 $537,500 $4,632.86 plus 9.30% $105,224
$537,500 $644,998 $44,834.53 plus 10.30% $537,500
$644,998 $1,074,996 $55,906.82 plus 11.30% $644,998
$1,074,996 AND OVER $104,496.59 plus 12.30% $1,074,996
Schedule Z - Head of household
IF THE TAXABLE INCOME IS
Over But Not Over Tax Is   Of Amount Over
$0 $16,040 $0.00 plus 1.00% $0
$16,040 $38,003 $160.40 plus 2.00% $16,040
38,003 $48,990 $$599.66 plus 4.00% $38,003
$48,990 $$60,630 $1,039.14 plus 6.00% $48,990
$$60,630 $71,615 $1,737.54 plus 8.00% $$60,630
$71,615 $365,499 $2,616.34 plus 9.30% $71,615
$365,499 $438,599 $29,947.55 plus 10.30% $365,499
$438,599 $730,997 $37,476.85 plus 11.30% $438,599
$$730,997 AND OVER $70,517.82 plus 12.30% $$730,997
Individual Filing Requirements
If your gross income or adjusted gross income is more than the amount shown in the chart below for your filing status, age, and number of dependents, then you have a filing requirement.
Filing Status Age As Of
December 31, 2016*
California Gross Income California Adjusted Gross Income
Dependents Dependents
0 1 2 Or More 0 1 2 Or More
Single or head of household Under 65 $16,597 $28,064 $36,664 $13,278 $24,745 $33,345
65 or older $22,147 $30,747 $37,627 $18,828 $27,428 $34,308
Married/RDP filing jointly
or separately
Under 65
(both spouses/RDPs)
$33,197 $44,664 $53,264 $26,558 $38,025 $46,625
65 or older (one spouse) $38,747 $47,347 $54,227 $32,108 $40,708 $47,588
65 or older
(both spouses/RDPs)
$44,297 $52,897 $59,777 $37,658 $46,258 $53,138
Qualifying widow(er) Under 65 N/A $28,064 $36,664 N/A $24,745 $33,345
65 or older N/A $30,747 $37,627 N/A $27,428 $34,308
Dependent of another person
(Any filing status)
Under 65 More than your standard deduction
65 or older More than your standard deduction
If you turn 65 on January 1, 2017, you are considered to be age 65 at the end of 2016.
 
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