The Tax Rates and Standard Deductions for 2017 are as follows:
The standard deduction for single taxpayers and married couples filing separately is $6,350 in 2017, up from $6,300 in 2016; for married couples filing jointly, the standard deduction is $12,700, up $100 from the prior year; and for heads of households, the standard deduction is $9,350 for 2017, up from $9,300. The numbers look like this:
For 2017, the additional standard deduction amount for the aged or the blind is $1,250. The additional standard deduction amount is increased to $1,550 if the individual is also unmarried and not a surviving spouse.
For 2017, the standard deduction for a taxpayer who can be claimed as a dependent by another taxpayer cannot exceed the greater of (a) $1,050 or (b) $350 + the dependent's earned income.
For those taxpayers who itemize their deductions, the Pease limitations, named after former Rep. Don Pease (D-OH) may cap or phase out certain deductions for high-income taxpayers. The Pease thresholds for 2017 are:
If the Pease limitations apply, the total of all your itemized deductions is reduced by the lesser of:
- 3% of AGI above the applicable threshold; or
- 80% of the amount of itemized deductions otherwise allowable for the tax year.
Pease limitations apply to charitable donations, the home mortgage interest deduction, state and local tax deductions and miscellaneous itemized deductions. They do not apply to medical expenses, investment expenses, gambling losses, and certain theft and casualty losses.
Keep in mind that the floor for medical expenses in 2017 is 10% of adjusted gross income (AGI) for all taxpayers. Taxpayers over the age of 65 could use the 7.5% floor through 2016: in 2017, the favored tax rate disappears and all taxpayers are subject to the 10% floor.
The personal exemption amount for 2017 is $4,050, the same as 2016. However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $261,500 ($313,800 for married couples filing jointly). It phases out completely at $384,000 ($436,300 for married couples filing jointly). Phaseouts apply as follows:
The Tax Rates for 2016 are as follows:
The tax rates for 2015 are as follows:
2014 Tax Rates
Married Filing Jointly and Surviving Spouses:
Head Of Household:
Married Filing Separately:
Standard Deductions. The 2015 standard deduction rises to $6,300 for single taxpayers and married taxpayers filing separately. The standard deduction is $12,600 for married couples filing jointly and $9,250 for heads of household.
Itemized Deductions. The limitation for itemized deductions – the Pease limitations, named after former Rep. Don Pease (D-OH) – for 2015 will kick in for individuals with incomes of $258,250 or more ($309,900 for married couples filing jointly). The Pease limitations were slated to be reduced beginning in 2006 and eliminated in 2010; as with the other tax cuts, the elimination was extended through the end of 2012. The limitations were brought back in 2013 at the original thresholds, indexed for inflation. The result of those changes is basically an increase in the top marginal tax rates.
Personal Exemptions. The personal exemption amount also goes up for 2015. The personal exemption for 2015 is $4,000, up from $3,950 in 2014. Phase-outs for personal exemption amounts (sometimes called “PEP”) begins with adjusted gross incomes of $258,250 ($309,900 for married couples filing jointly); they phase out completely at $380,750 ($432,400 for married couples filing jointly.) And now, onto more updates! Family Related Tax Item Updates:
Corporate Income Tax Rates--2005-2015
Taxable income over Not over Tax rate
$ 0 --- $ 50,000 15%
$50,000 ---$75,000 25%
$75,000 ---$100,000 34%
$100,000 ---$335,000 39%
$335,000 --$10,000,000 34%
18,333,333 ..................... 35%
Personal Service Corporations
Personal service corporations are subject to a flat tax of 35% regardless of their income.
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