Important Tax Figures for 2017

Important Tax Figures for 2017

The following table provides some important federal tax information for 2017, as compared with 2016. Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation.

 

Social Security/ Medicare20172016
Social Security Tax Wage Base$127,200$118,500
Medicare Tax Wage BaseNo limitNo limit
Employee portion of Social Security6.2%6.2%
Individual Retirement Accounts20172016
Roth IRA Individual, up to 100% of earned income$5,500$5,500
Traditional IRA Individual, up to 100% of earned Income$5,500$ 5,500
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older$1,000$ 1,000
Qualified Plan Limits20172016
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)$54,000$ 53,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))$215,000$210,000
Maximum compensation used to determine contributions$270,000$265,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))$ 18,000$ 18,000
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older$ 6,000$ 6,000
SIMPLE deferrals (Section 408(p)(2)(A))$ 12,500$ 12,500
SIMPLE additional “catch-up” contributions for employees age 50 and older$ 3,000$ 3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B))$120,000$120,000
Compensation defining key employee (officer)$175,000$170,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))$600$600
Driving Deductions20172016
Business mileage, per mile53.5 cents54 cents
Charitable mileage, per mile14 cents14 cents
Medical and moving, per mile17 cents19 cents
Business Equipment20172016
Maximum Section 179 deduction$510,000$500,000
Phase out for Section 179$2.03 million$2.01 million
Transportation Fringe Benefit Exclusion20172016
Monthly commuter highway vehicle and transit pass$255$255
Monthly qualified parking$255$255
Standard Deduction20172016
Married filing jointly$12,700$12,600
Single (and married filing separately)$6,350$6,300
Heads of Household$9,350$9,300
Personal Exemption20172016
Amount$4,050$4,050
Personal Exemption Phaseout20172016
Married filing jointly and surviving spousesBegins at $313,800Begins at $311,300
Heads of HouseholdBegins at $287,650Begins at $285,350
Unmarried individualsBegins at $261,500Begins at $259,400
Married filing separatelyBegins at $156,900Begins at $155,650
Domestic Employees20172016
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.$ 2,000$ 2,000
Kiddie Tax20172016
Net unearned income not subject to the “Kiddie Tax”$ 2,100$ 2,100
Estate Tax20172016
Federal estate tax exemption$5.49 million$5.45 million
Maximum estate tax rate40%40%
Annual Gift Exclusion20172016
Amount you can give each recipient$14,000$14,000

 

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