Tax Changes Coming for 2017
While many taxpayers consider January through April to be tax season, taxes are a year-round endeavor. Make sure you’re up to date on tax changes coming for 2017 to save yourself time and money at filing time.
2017 Tax Brackets and Deductions
Low inflation has kept tax bracket adjustments to a minimum for 2017. Individuals and business filers won’t notice significant changes.
If you haven’t received increases in income, salary or bonuses, your tax bracket is likely to remain the same for 2017. Contact a tax professional for tax tips if your income has increased in 2017 to minimize your tax debt.
Standard deductions didn’t increase much; most deductions increased by $50.00 – $100.00 depending on your filing status. The IRS offers a free online tool to help you determine the amount of your standard deduction: Standard Deduction Tool. You’ll need to enter your age, your spouse’s age and your filing status.
Health Insurance Penalty
Many people speculate that the new administration will not enforce the healthcare penalty for the year 2017, but it is still in effect. You may want to take advantage of a tax consulting service for definitive answers when it’s time to file.
Business Tax Rates
- Standard mileage for 2017 is 53.5 cents per mile (down from 54 cents)
- Medical and moving mileage for 2017 is 17 cents per mile (down from 19 cents)
- Charitable mileage rate is unchanged from 2016: 14 cents per mile
2017 Filing Date
April 18th, 2017 is tax day. This year, April 15th falls on a holiday and is followed by a weekend. Don’t use the filing date as an excuse to procrastinate; getting an early start will help you take advantage of deductions and write-offs.
2017 IRA Contributions
Adjusted gross income (AGI) limits went up slightly in 2017 for all filing statuses for traditional and Roth IRAs. The IRS features a chart on their website with the new AGI limits: Retirement Plans IRS.gov
2017 Medical Expense Deductions
Taxpayers 65 and older will be subject to the 10-percent minimum on itemized medical expenses. In 2016, those taxpayers had a threshold of 7.5 percent.
2017 Estate Tax Exemption
The estate tax exemption for 2017 rose to $5.49 million. The current administration has suggested doing away with estate taxes entirely, so keep your eye on this exemption in the future.
As far as tax changes go, there aren’t many significant or notable changes. However, consulting an experienced tax professional for tax help will keep your tax debt to a minimum.