2017 Tax Law Updates

Follow

Federal Income Tax Brackets:

Married Filing Joint Return:

10%        from $0 to $18,650

15%        from $18,650 to $75,900

25%        from $75,900 to 153,100

28%        from $153,100 to $233,350

33%        from $233,350 to $416,700

35%        from $416,700 to $470,700

39.60%  from $470,700

Married Filing Separate Returns:

10%        from $0 to $9,325

15%        from $9,325 to $37,950

25%        from $37,950 to $76,550

28%        from $76,550 to $116,675

33%        from $116,675 to $208,350

35%        from $208,350 to $235,350

39.60%  from $235,350

Single:

10%        from $0 to $9,325

15%        from $9,325 to $37,950

25%        from $37,950 to $91,900

28%        from $91,900 to $191,650

33%        from $191,650 to $416,700

35%        from $416,700 to $418,400

39.60%  from $418,400

Head of Household:

10%        from $0 to $13,350

15%        from $13,350 to $50,800

25%        from $50,800 to $131,200

28%        from $131,200 to $212,500

33%        from $212,500 to $416,700

35%        from $416,700 to $444,550

39.60%  from $444,550

Contribution limits and phase out income thresholds for retirement savings accounts

Traditional IRA:

Contribution limit amounts remain the same – $5,500 or $6,500 for individuals over 50.

For individuals covered by an employer retirement plan the deduction phase-out ranges for modified adjusted gross income are:

  • Single and Head of Household - from $62,000 to $72,000.
  • Married Filing Joint Return, for covered spouse - from $99,000 to $119,000.
  • Married Filing Joint Return, for non-covered spouse  - from $186,000 to $196,000
  • Married Filing Separate Returns - from $0 to $10,000.

Roth IRA:

Contribution limit amounts remain the same - $5,500 or $6,500 for individuals over 50.

Contribution phase out ranges for adjusted gross income are:

  • Single and Head of Household - from $118,000 to $133,000.
  • Married Filing Joint Return - from $186,000 to $196,000.
  • Married Filing Separate Returns - from $0 to $10,000.

Employer sponsored plans

Contribution Limits for employees that participate in a 401(k) or 403(b) plans remains unchanged at $18,000.

The Total Contribution limitation increased in 2017 to $54,000.

Personal Exemption Value

Personal exemption value for 2017 is set at $4,050.

Personal exemption phase-out starts when adjusted gross income exceeds threshold:

  • Married Filing joint Return           $313,800
  • Married Filing Separate Returns                $156,900
  • Single                                                    $261,500
  • Head of Household                         $287,650

Phase out step is $2,500 ($1,250 for Married Filing Separate Returns). For each $2,500 ($1,250 for Married Filing Separate Returns) over the threshold personal exemption gets reduced by 2% ($81).

Standard Deduction Amount

For year 2017 standard deduction amounts are:

  • Married Filing Joint Return           $12,700
  • Married Filing Separate Returns                $9,350
  • Single                                                    $6,350
  • Head of Household                         $9,350

Additional standard deduction amount for aged or blind:

  • Married Filing Joint Return           $1,250
  • Married Filing Separate Returns                $1,250
  • Single                                                    $1,550
  • Head of Household                         $1,550

Income Limit subject to Social Security Tax:

In 2017, the income subject to Social Security tax increased to $127,200.

Estate Tax Exclusion Amount

The basic exclusion amount for determining the amount of the unified credit against estate tax has been updated to $5,490,000

 

Have more questions? Submit a request

Comments