It seems like we’re already preparing for the 2017 tax season only moments after we drop our 2016 tax return at the post office or hit send on our E-File return. Keeping informed of changes and updates is a great way to prepare yourself come tax time. Apart from tax law changes, the IRS adjusts many tax numbers for inflation each year. Here are some of those adjustments that you need to be aware of in your 2017 tax and financial planning.
- The standard mileage rates are 53.5¢ a mile for business driving, 17¢ a mile for medical and moving, and 14¢ a mile for charitable driving.
- The social security taxable wage limit is $127,200. Retirees under full retirement age can earn up to $16,920 in 2017 without losing benefits.
- Contribution limits to some retirement accounts increase for 2017. The maximum contribution for an IRA remains at $5,500 for those under age 50 and $6,500 for those 50 and older. The limit for SIMPLE plans remains at $12,500 for those under age 50 and $15,500 for those 50 and older. The 401(k) limit for 2017 is $18,000 for those under age 50 and $24,000 for those 50 and older.
- The nanny tax threshold remains at $2,000.
- The kiddie tax threshold remains at $2,100.
- The annual gift tax exclusion limit remains at $14,000 for 2017.
For details on these and other 2017 numbers and changes, give us a call. ♦