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