IRS Issues 2017 Inflation and Tax Adjustments for Individuals

The IRS recently released the 2017 inflation adjustments for over 50 tax provisions. Below is a list of the most relevant items for taxpayers:

2016                                       2017 

Tax Rate is 39.6% when Taxable Income exceeds:           

Single                                                                $ 415,050                           $ 418,400

Married, filing jointly & surviving spouse     $ 466,950                           $ 470,700

 

Limitation for Itemized Deductions – Income exceeds:

Single                                                                $ 259,400                           $ 261,500

Married, filing jointly & surviving spouse      $ 311,300                          $ 313,800

 

Personal Exemption Amount – no change     $ 4,050                               $ 4,050

Phase-out begins when income exceeds:

Single                                                                $ 259,400                         $ 261,500

Married, filing jointly & surviving spouse     $ 311,300                          $ 313,800

 

Standard Deduction

Single                                                                 $ 6,300                               $ 6,350

Married, filing jointly & surviving spouse     $ 12,600                            $ 12,700

 

Social Security Wage Base                            $ 118,500                          $ 127,200

 

Traditional IRA

Contributions – no change                               $ 5,500                                 $ 5,500

Catch-up contributions – no change               $ 1,000                                 $ 1,000

Phase-out begins when income exceeds:

Single                                                               $ 61,000                               $ 62,000

Married, filing jointly & surviving spouse    $ 98,000                                $ 99,000

 

Roth IRA

Contributions – no change                              $ 5,500                                  $ 5,500

Catch-up contributions – no change               $ 1,000                                 $ 1,000

Phase-out begins when income exceeds:

Single                                                                 $ 117,000                        $ 118,000

Married, filing jointly & surviving spouse       $ 184,000                       $ 186,000

 

401 (k) Plan Contributions – limits remain at $18,000, and catch-up contributions remain at $6,000 for 2017

 

Nanny Tax Threshold – earnings remain at $2,000 for 2017

 

For a complete list of 2017 adjustments, read the IRS Revenue Procedure 2016-55. If you have questions about how these adjustments will affect you, contact an Anders advisor.