Important Tax Figures for 2017

Every year, the dollar amounts allowed for various federal tax benefits are subject to change based on inflation adjustments and legislation. Here are some important tax figures for 2017, compared with 2016, including the estate tax exemption, Social Security wage base, qualified retirement plan and IRA contribution limits, driving deductions, allowable business write-off amounts and more.

 

The following table provides some important federal tax information for 2017, as compared with 2016. Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation.   Social Security/ Medicare 2017 2016 Social Security Tax Wage Base $127,200 $118,500 Medicare Tax Wage Base No limit No limit Employee portion of Social Security 6.2% 6.2% Individual Retirement Accounts 2017 2016 Roth IRA Individual, up to 100% of earned income $5,500 $5,500 Traditional IRA Individual, up to 100% of earned Income $5,500 $ 5,500 Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older $1,000 $ 1,000 Qualified Plan Limits 2017 2016 Defined Contribution Plan limit on additions on Sections 415(c)(1)(A) $54,000 $ 53,000 Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) $215,000 $210,000 Maximum compensation used to determine contributions $270,000 $265,000 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) $ 18,000 $ 18,000 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older $ 6,000 $ 6,000 SIMPLE deferrals (Section 408(p)(2)(A)) $ 12,500 $ 12,500 SIMPLE additional “catch-up” contributions for employees age 50 and older $ 3,000 $ 3,000 Compensation defining highly compensated employee (Section 414(q)(1)(B)) $120,000 $120,000 Compensation defining key employee (officer) $175,000 $170,000 Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) $600 $600 Driving Deductions 2017 2016 Business mileage, per mile 53.5 cents 54 cents Charitable mileage, per mile 14 cents 14 cents Medical and moving, per mile 17 cents 19 cents Business Equipment 2017 2016 Maximum Section 179 deduction $510,000 $500,000 Phase out for Section 179 $2.03 million $2.01 million Transportation Fringe Benefit Exclusion 2017 2016 Monthly commuter highway vehicle and transit pass $255 $255 Monthly qualified parking $255 $255 Standard Deduction 2017 2016 Married filing jointly $12,700 $12,600 Single (and married filing separately) $6,350 $6,300 Heads of Household $9,350 $9,300 Personal Exemption 2017 2016 Amount $4,050 $4,050 Personal Exemption Phaseout 2017 2016 Married filing jointly and surviving spouses Begins at $313,800 Begins at $311,300 Heads of Household Begins at $287,650 Begins at $285,350 Unmarried individuals Begins at $261,500 Begins at $259,400 Married filing separately Begins at $156,900 Begins at $155,650 Domestic Employees 2017 2016 Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $ 2,000 $ 2,000 Kiddie Tax 2017 2016 Net unearned income not subject to the “Kiddie Tax” $ 2,100 $ 2,100 Estate Tax 2017 2016 Federal estate tax exemption $5.49 million $5.45 million Maximum estate tax rate 40% 40% Annual Gift Exclusion 2017 2016 Amount you can give each recipient $14,000 $14,000   © Copyright 2017. All rights reserved. Brought to you by: Wright Ford Young & Co.