Tuesday, June 27, 2017

Tax Numbers for 2016 and 2015 – Part 1



The numbers for 2016 in the chart below apply to your 2016 returns, and the numbers for 2017 should be used in your 2017 tax planning.

                                                                        2017                        2016
Standard deduction
* Single                                                         $  6,350                    $  6,300
* Joint returns and surviving spouses               $12,700                    $12,600
* Married filing separately                               $  6,350                    $  6,300
* Head of household                                     $  9,350                    $  9,300
* Additional for elderly or blind (married)        $  1,250                    $  1,250
* Additional for elderly or blind (single)           $  1,550                    $  1,550

Personal exemption                                       $  4,050                    $  4,050
“Kiddie tax” threshold                                   $  2,100                    $  2,100
“Nanny tax” threshold                                   $  2,000                    $  2,000

Social security tax wage base                         $127,200                  $118,500
Medicare tax wage base                                 No limit                   No limit
Social security earnings limit
* Below full retirement age                            $ 16,920                   $ 15,720
* Full retirement age                                     No limit                   No limit

Maximum retirement plan contributions
* IRA for those under age 50                          $  5,500                    $  5,500
* IRA for those 50 and over                           $  6,500                    $  6,500
* SIMPLE plan for those under age 50            $12,500                    $12,500
* SIMPLE plan for those 50 and over             $15,500                    $15,500
* 401(k) plan for those under age 50                $18,000                    $18,000
* 401(k) plan for those 50 and over                 $24,000                     $24,000

Call us at (219) 769-3616 with your questions, or email them to tlynch@swartz-retson.com.

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