IRS Announces New Inflation Adjustments for 2017

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

Posted in
Try These Five Tips For Tax Savings in 2014

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…

As Property Values Soar In California, So Do the Tax Bills

As Property Values Soar In California, So Do the Tax Bills

As Property Values Soar In California, So Do the Tax Bills When it comes to taxes, sometimes it seems like if it’s not one thing, then it’s another. During the recession, when the housing market was taking a hit due to dropping property values, county tax assessors across the state actually dropped property tax bills…

Five Tax Items to Be Ready For This Year

Five Tax Items to Be Ready For This Year

Five Tax Items to Be Ready For This Year Although the most recent tax season is over one can never truly put his or her tax-planning hat completely away for the year. With tax laws and regulations always in flux, you have to make sure that you’re prepared for the upcoming tax season. It will…

Five Tips for Planning Your Taxes for Next year

Five Tips for Planning Your Taxes for Next year

Summer is almost here and that means people are getting ready to enjoy outdoor activities like BBQs & swimming and hiking & fishing. It’s also a great time to start thinking about your taxes for next year. What? It can’t really be time to do that, can it? Well, when it comes to tax planning,…