• Taxko Staff

New for 2017 - Federal Tax Updates


Here’s what’s new for 2017:

  • Alternative Minimum Tax (AMT) exemption amounts increased:

  • For single or head of household — $53,600

  • For married filing jointly or qualifying widow(er) — $83,400

  • For married filing separately — $41,700

  • IRA deduction expanded — You might be able to claim a deduction if both of these apply:

  • You were covered by a retirement plan.

  • Your income was less than $71,000 — or $118,000 for married filing jointly or qualifying widow(er)

If your spouse was covered by a retirement plan but you weren’t, you might be able to claim a deduction. Your income has to be less than $193,000 to claim a deduction in this case.

  • Current standard mileage rates:

  • $0.535 a mile for business use of a vehicle

  • 23.5 cents a mile for medical care

  • Earned Income Credit (EIC) maximum income changes are:

  • Three or more children lived with you and you earned less than $47,747 — or $53,267 if married filing jointly

  • Two children lived with you and you earned less than $45,007 — or $49,974 if married filing jointly

  • One child lived with you and you earned less than $39,617 — or $44,651 if married filing jointly

  • No children lived with you and you earned less than $15,010 — or $20,330 if married filing jointly

  • The maximum investment income you can earn and still get the EIC increased to $3,450.

  • Elective salary deferrals:

  • No exceptions — maximum amount is $18,000

  • SIMPLE plans only — maximum amount is $12,500

  • 403(b) plans and qualify for the 15-year rule — maximum amount is $21,000

  • Catch-up contributions for taxpayers age 50 or over has increased to $6,000. Exceptions include for Section 401(k)(11) and SIMPLE plans

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