Table: 2016 phaseouts for individuals that create effective marginal tax rates (MTRs) different from statutory tax rates (STRs) Provision Code § (estimated number Relevant Adjusted How Phaseout Effective MTR in relevant AGI Income (AGI) Range by range) Filing Status (see Notes) Low-Income Taxpayers Credit: No children: Statutory rate 7.65% − 1) Phasein of § 32 $0–$6,610a Earned income (EI) × 7.65% earned income credit One child: Statutory rate 34% − EI × 34% (7 million (M)) $0–$9,920a Two children: Statutory rate 40% − $0–$13,930a EI × 40% § 32(b)(3) Three or more children: EI × 45% $0–$13,930a Statutory rate 45% − Phaseout of earned § 32 income credit Joint: $13,820–$20,430 No children: Statutory rate + 7.65% $506 [7.65% × (EIb $13,820)] – − (15 M) Single or Head of Household $506 [7.65% × (EIb $8,270)] – − (HH): $8,270–$14,880 One child: Statutory rate + 15.98% $23,740–$44,846 $3,373 × (EIb –[15.98% − Single or HH: $18,190–$39,296 $23,740)] $3,373 × (EIb –[15.98% − $18,190)] Joint: $23,740–$50,198 Two children: Statutory rate + 21.06% Single or HH: $18,190–$44,648 $5,572 × (EIb –[21.06% − § 32(b)(3) $23,740)] Joint: $23,740–$53,505 Three or more children: $5,572 × (EIb –[21.06% − Single or HH: $18,190–$47,955 Statutory rate + 21.06% $18,190)] $6,269 × (EIb –[21.06% − $23,740)]
Table: 2016 phaseouts for individuals that create effective marginal tax rates (MTRs) different from statutory tax rates (STRs) Provision (estimated number in relevant AGI range) Code § Relevant Adjusted Income (AGI) Range by Filing Status (see Notes) How Phaseout Effective MTR Low-Income Taxpayers 1) Phasein of earned income credit (7 million (M)) Phaseout of earned income credit (15 M) § 32 § 32(b)(3) § 32 § 32(b)(3) $0–$6,610a $0–$9,920a $0–$13,930a $0–$13,930a Joint: $13,820–$20,430 Single or Head of Household (HH): $8,270–$14,880 $23,740–$44,846 Single or HH: $18,190–$39,296 Joint: $23,740–$50,198 Single or HH: $18,190–$44,648 Joint: $23,740–$53,505 Single or HH: $18,190–$47,955 Credit: Earned income (EI) × 7.65% EI × 34% EI × 40% EI × 45% $506 – [7.65% × (EIb − $13,820)] $506 – [7.65% × (EIb − $8,270)] $3,373 –[15.98% × (EIb − $23,740)] $3,373 –[15.98% × (EIb − $18,190)] $5,572 –[21.06% × (EIb − $23,740)] $5,572 –[21.06% × (EIb − $18,190)] $6,269 –[21.06% × (EIb − $23,740)] No children: Statutory rate − 7.65% One child: Statutory rate − 34% Two children: Statutory rate − 40% Three or more children: Statutory rate − 45% No children: Statutory rate + 7.65% One child: Statutory rate + 15.98% Two children: Statutory rate + 21.06% Three or more children: Statutory rate + 21.06%