Changes You Need to Know for the 2017 Filing Season

Changes You Need to Know for the 2017 Filing Season

Tax planning isn’t something most Americans want to think about as we head into the holidays, but having a year-round plan that takes into account the various tax laws can save you a lot of hassle and a little green come tax time. It can be especially helpful when considering that roughly 80% of all taxpayers wind up receiving a refund from the federal government.

However, what you know about the U.S. tax code may be changing in the upcoming year. Just a few weeks ago the Internal Revenue Service released its tax changes for 2017, and there are quite a few updates you’ll want to be aware of:

Auto Mileage Rates for 2017

• 53.5 cents per mile for business

• 17.0 cents per mile for medical or moving

• 14.0 cents per mile for charitable

Social Security

For 2017 social security taxable wage limit increases to $127,200.

Annual Gift Tax Exemption

For 2017 the annual gift exemption is $14,000 per individual.

Federal Estate Tax

For 2017 the estate tax exemption is $5,490,000 per person.

Business Asset Expensing

For 2017 the expensing limits are $500,000/$2,000,000

Tax Rate of 39.6% If Taxable Income Is

• $470,700 for married taxpayers’

• $418,400 for single taxpayers’

• $444,550for head of household

Capital Gains

If taxpayer in marginal rate of 39.6% capital gains rate is 20%.

Retirement Plan Contributions for 2017

• Traditional IRA $5,500 ( $6,500 if 50 or older)

• Roth IRA $5,500 ( $6,500 if 50 or older)

• SEP Plans lesser of 25% of compensation or $54,000