IRS Announces New Inflation Adjustments for 2017
![shutterstock_388102420-[Converted]](https://groco.com/wp-content/uploads/2021/02/shutterstock_388102420-Converted.png "shutterstock_388102420-[Converted]")
While the 2016 tax year is still not quite over, the IRS has already announced some important inflation adjustments for the 2017 tax year, which taxpayers will file for in 2018. While you might be more worried about your upcoming tax return, there are some important changes to know about. However, that being said, with the new president-elect set to take office in January, some, or all of these changes could be changed again, as Donald Trump has already made it clear he wants to rewrite the nation’s tax policy.
In the meantime, the IRS stated that the standard deduction for taxpayers who are married filing jointly will increase by $100 to $12,700. However, the personal exemption for single filers will stay the same as last year at $4,050. The inflation adjustments also increased the top income levels of the tax brackets, but if Trump’s planned changes occur then these brackets would be obsolete, as the president-elect has already stated he wants to drop the current seven bracket system and replace it with just three.
Another tax that would be affected is the estate tax, which currently kicks in on estates with assets that surpass $5.45 million. In 2017 that number increases to $5.49 million. However, Trump has also stated that he would like to completely wipe out the estate tax so this could also be of little consequence by this time next year. Inflation adjustments will also affect the limit above which itemized deductions can be reduced, the maximum amount for earned income credit and the Alternative minimum tax.
http://www.journalofaccountancy.com/news/2016/oct/2017-inflation-adjustments-201615410.html
Could You Pay More to Drink Soda in Berkeley?
Could You Pay More to Drink Soda in Berkeley? We all know that obesity is a problem in our country. Activists and other interested parties continue to work on ways to help curb this growing problem. Indeed, obesity is neither good for individuals or for our country. However, would creating a new tax to help…
What Happened to California’s Tax Revenue in May?
Where has all of California’s money gone? Ok, so the state isn’t bankrupt or anything like that, but according to recent reports, the state’s tax revenues fell short by 5.5 percent in the month of May. That marks the first time in six months that California’s revenues have not reached expectations. In fact, that 5.5…
Beware the Pump: Another Gas Tax Is on the Way
If you’ve had enough with California’s high gas prices, then you might not want to keep reading, because just when you thought things couldn’t get any worse, they are about to. That’s because when 2015 rolls around California residents are going to have to pay another new gas tax. In fact it’s a double-digit hike…
Try These Five Tips For Tax Savings in 2014
Everyone loves to save on their taxes, especially since it seems like the government never runs out of ways to add to American’s tax bill. So let’s discuss some helpful tips to reduce your tax bill. Although it might be too late to implement these ideas for last year’s return – unless you file an…