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) |
2016 |
2017 |
| 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 deductions |
2016 |
2017 |
| 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 deduction |
2016 |
2017 |
| 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 dependent |
Greater of $1,050 or $350 + earned income |
Greater 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 brackets |
2016 |
2017 |
| Single |
39.6% of taxable income exceeding $415,050 + $120,529.75 |
39.6% of taxable income exceeding $418,400 + $121,505.25 |
| MFJ |
39.6% of taxable income exceeding $466,950 + $130,578.50 |
39.6% of taxable income exceeding $470,700 + $131,628 |
| MFS |
39.6% of taxable income exceeding $233,475 + $65,289.25 |
39.6% of taxable income exceeding $235,350 + $65,814 |
| HOH |
39.6% of taxable income exceeding $441,000 + $125,936 |
39.6% of taxable income exceeding $444,550 + $126,950 |
| Long-term capital gains and qualifying dividends1 generally taxed at maximum rate of: |
2016 |
2017 |
| Taxpayers in top (39.6%) tax bracket |
20% |
20% |
| Taxpayers in 25%, 28%, 33%, and 35% tax rate brackets |
15% |
15% |
| Taxpayers in tax rate bracket 15% or less |
0% |
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) |
2016 |
2017 |
| Amount of tax |
3.80% |
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 rates |
2016 |
2017 |
| 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 |
|
