14 Mar 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
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
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