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2017 Key Income Tax Numbers

Forefield Concept Piece


Qualified charitable distributions (QCDs)

Qualified charitable distributions (QCDs) are distributions made directly from an IRA to a qualified charity. Such distributions may be excluded from income and count toward satisfying any required minimum distributions (RMDs) you would otherwise have to receive from your IRA. Individuals age 70½ and older can make up to $100,000 in QCDs per year. This provision has been permanently extended.

Provisions that are permanently extended

  • Increased Internal Revenue Code (IRC) Section 179 expense limits ($500,000 maximum amount indexed for inflation)
  • The $250 above-the-line tax deduction for educator classroom expenses
  • The ability to deduct state and local sales tax in lieu of the itemized deduction for state and local income tax

Provisions that expire at the end of 2019

  • Bonus depreciation provisions

Provisions that expire at the end of 2016 (unless extended)

  • The ability to deduct mortgage insurance premiums as qualified residence interest
  • The deduction for qualified higher education expenses

Income Tax Key Numbers

Alternative minimum tax (AMT)20162017
Maximum AMT exemption amount$83,800 (MFJ) $53,900 (Single/HOH) $41,900 (MFS)$84,500 (MFJ) $54,300 (Single/HOH) $42,250 (MFS)
Exemption phaseout threshold$159,700 (MFJ) $119,700 (Single/HOH) $79,850 (MFS)$160,900 (MFJ) $120,700 (Single/HOH) $80,450 (MFS)
26% rate applies to AMT income (AMTI) at or below this amount (28% rate applies to AMTI above this amount)$186,300 ($93,150 if MFS)$187,800 ($93,900 if MFS)
Exemptions/itemized deductions20162017
Personal & dependency exemptions$4,050$4,050
Phaseout threshold for exemptions and itemized deductions$311,300 (MFJ) $285,350 (HOH) $259,400 (Single) $155,650 (MFS)$313,800 (MFJ) $287,650 (HOH) $261,500 (Single) $156,900 (MFS)
Standard deduction20162017
Standard deduction amount$12,600 (MFJ) $9,300 (HOH) $6,300 (Single) $6,300 (MFS)$12,700 (MFJ) $9,350 (HOH) $6,350 (Single) $6,350 (MFS)
Standard deduction for dependentGreater of $1,050 or $350 + earned incomeGreater of $1,050 or $350 + earned income
Additional deduction for aged/blind$1,550 (single or head of household) $1,250 (all other filing statuses)$1,550 (single or head of household) $1,250 (all other filing statuses)
Top tax brackets20162017
Single39.6% of taxable income exceeding $415,050 + $120,529.7539.6% of taxable income exceeding $418,400 + $121,505.25
MFJ39.6% of taxable income exceeding $466,950 + $130,578.5039.6% of taxable income exceeding $470,700 + $131,628
MFS39.6% of taxable income exceeding $233,475 + $65,289.2539.6% of taxable income exceeding $235,350 + $65,814
HOH39.6% of taxable income exceeding $441,000 + $125,93639.6% of taxable income exceeding $444,550 + $126,950
Long-term capital gains and qualifying dividends1 generally taxed at maximum rate of:20162017
Taxpayers in top (39.6%) tax bracket20%20%
Taxpayers in 25%, 28%, 33%, and 35% tax rate brackets15%15%
Taxpayers in tax rate bracket 15% or less0%0%

1 Generally, qualifying dividends are dividends received by an individual shareholder from domestic and qualified foreign corporations

Unearned income Medicare contribution tax (Net investment income tax)20162017
Amount of tax3.80%3.80%
Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding:
Individuals$200,000$200,000
Married filing jointly$250,000$250,000
Married filing separately$125,000$125,000
Standard mileage rates20162017
Use of auto for business purposes (cents per mile)$0.54$0.535
Use of auto for medical purposes (cents per mile)$0.19$0.17
Use of auto for moving purposes (cents per mile)$0.19$0.17
Use of auto for charitable purposes (cents per mile)$0.14$0.14

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017.

2017-03-16T15:27:58+00:00 March 16th, 2017|Tax Planning|