2017 Federal Income Tax Rates, Etc

Most of the inflation adjusted amounts are indexed based on inflation factors as of August 31st each year.  Various tax reference sources, such as CCH and RIA, make projections based on these factors.

We have chosen to wait until the official numbers have been released.  Here are the official 2017 amounts.

Revenue Procedure 2016-55 contains most of the inflation adjusted amounts for 2017.  A copy of the Rev. Proc. can be found at www.irs.gov/pub/ by clicking on irs‑drop and clicking on rp-2016-55.

Tax Rates - Ceilings

Single
10% bracket tops at $9,325
15% tops at $37,950
25% tops at $91,900
28% tops at $191,650
33% tops at $416,700
35% tops at $418,400
39.6% applies to anything over $418,400

MFJ
10% bracket tops at $18,650
15% tops at $75,900
25% tops at $153,100
28% tops at $233,350
33% tops at $416,750
35% tops at $470,700
39.6% applies to anything over $470,700

Head of Household
10% bracket tops at $13,350
15% tops at $50,800
25% tops at $131,200
28% tops at $212,500
33% tops at $416,700
35% tops at $444,550
39.6% applies to anything over $444,550

MFS
10% bracket tops at $9,325
15% tops at $37,950
25% tops at $76,550
28% tops at $116,675
33% tops at $208,350
35% tops at $235,350
39.6% applies to anything over $235,350

Estates & Trusts
15% bracket tops at $2,550
25% tops at $6,000
28% at $9,150
33% at $12,500
39.6% applies to anything over $12,500

- Exemption amount is $4,050.

- Standard deduction amounts are:  MFJ-$12,700, Single & MFS-$6,350, HH-$9,350, Additional amounts for aged/blind-$1,550 for unmarried and $1,250 for married status.

- Exemption and itemized deduction phase-outs begin for MFJ/QW at $313,800, HH at $287,650, S at $261,500, and MFS at $156,900.

- Kiddie Tax
Standard Deduction is $1,050, the next $1,050 is taxed at child’s rate, and the excess is taxed at parent’s rate.  AMT Exemption amount is the child’s earned income plus $7,400.

- AMT – The exemption amounts are:
MFJ/QW = $84,500
S/HH = $54,300
MFS = $42,250
Estates/trusts = $24,100

The excess taxable income level (where the 28% AMT rate applies) is:
MFJ/QW/S/HH = $187,800
MFS = $93,900

- Adoption Credit - $13,570 is the maximum for the credit or assistance amounts.  The phase out starts at $203,540 and is completely phased out at $243,540.

- Child Tax Credit – refundable portion uses an income base of $3,000.

- Education Credits.  The phase-out for the American Opportunity Credit starts at $80,000 ($160,000 for MFJ).  The phase-out for the Lifetime Learning Credit $56,000 ($112,000 for MFJ)

- EIC maximum AGI/earned income for MFJ is $45,207 for one child, $50,597 for two children, $53,930 for three or more children, and $20,600 for no children.  The EIC maximum AGI/earned income for other taxpayers is $39,617 for one child, $45,007 for two children, $48,340 for three or more children, and $15,010 for no children.  Excessive investment income level for EIC is $3,450.

- Transportation Fringe maximum exclusion for monthly parking is $255/month as well as for commuter highway vehicle and transit passes.

- Savings Bonds for Education phase out level starts at $117,250 for MFJ and $78,150 for other filing statuses.  This is completely phased out at $147,250 for MFJ and $93,150 for other filing statuses.

- §179 election maximum is $510,000, with a phase-out starting at $2,030,000.

- Foreign Earned Income exclusion is $102,100.

- Long-term care premiums are limited to:
Age
40 or less-------$410
>40, but not >50------$770
>50, but not >60------$1,530
>60, but not >70------$4,090
>70------$5,110

- Long-term care contract benefit amount is $360 per day.

- Student loan interest maximum is $2,500, with a phase out starting at $65,000 ($135,000 for MFJ).  This is completely phased out at $80,000 ($165,000 for MFJ)

- Annual gift tax exclusion remains at $14,000, while the limit on gifts to noncitizen spouses is at $149,000.

- Exclusion amount for Estate/Gift tax is $5,490,000.

- Attorney Fee Awards are limited to $200 per hour.

- MSA
Self-only coverage annual deductible is not less than $2,250 nor more than $3,350, with out-of-pocket limits not in excess of $4,500.

Family coverage annual deductible is not less than $4,500 nor more than $6,750, with out-of-pocket limits not in excess of $8,250.

- Educator Deduction – The maximum above-the-line deduction for qualified educators remains at $250.

- Cafeteria Plan – The dollar limitation for §125 health FSAs increases to $2,600.

- Small Business Health Insurance Credit – The dollar amount for purposes of limiting this credit is $26,200.

- Penalty for failure to file a Partnership or S corporation return is $200 per month per Schedule K-1.

- Penalty for failure to file correct Forms 1099 is $260.

- Nanny Tax – The wage threshold for FICA is $2,000.


This text has been shared with you courtesy of: David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, 920-496-1065 (fax 920-496-9111).