Individual Income Taxes
There are multiple changes to the tax brackets, deductions and exemptions in 2017. More than 40 tax provisions, are adjusted for inflation in 2017. Here are the ones most likely to affect you.
The tax rate of 39.6 percent kicks in for singles whose income exceeds $415,050 ($466,950 married couples filing jointly).
The wage threshold for Social Security payroll taxes increases to $127,200 from $118,500, a 7.3% increase from 2016. There is no limit on the Medicare tax wage base.
The standard deduction increases to $6,350 for singles and $12,700 for married couples filing jointly.
The limitation for itemized deductions for single is $258,250 or more ($309,900 for married couples filing jointly).
The personal exemption remains intact at $4,050. Remember, the exemption is subject to a phase-out that begins with adjusted gross incomes of $259,400 ($311,300 for married couples filing jointly).
The Alternative Minimum Tax exemption amount for tax year 2017 is $53,900 ($83,800, for married couples filing jointly).
In 2017, the maximum Earned Income Credit amount is $6,318 for taxpayers filing jointly who have 3 or more qualifying children.
The Standard Mileage rate is down to $0.535.
For 2017, the foreign earned income exclusion is $102,100.
The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements increases to $3,350.
Corporate Income Taxes
The corporate tax rate maxes out at 35% of amounts over $18,333,333.
Estate and Gift Taxes
Estates of decedents who die during 2015 have a primary exclusion amount of $5,490,000
The annual exclusion for gifts remains at $14,000 for 2017.
The exclusion from tax on a gift to a spouse who is not a U.S. citizen is $147,000, up from $145,000.
Connecticut and New York Taxes
Connecticut and New York have their own Income Tax and Estate Tax regimes which differ from the federal Income Tax and Estate Tax regimes and which have to be considered also. So whether you live in Easton CT or South Salem NY makes a difference. Income Tax planning and Estate Planning will harmonize all these taxes.