2017 IRS Tax Brackets

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Key Changes to the Tax Rate:

  • Standard Deduction – Increased slightly to the following
    •  Single 6,350
    • Joint and Surviving Spouse 12,700
    • Married Separate 6,350
    • Head of Household 9,350
  • Gift Tax – Remains the same at $14,000

For the tax year 2017, the 28 percent AMT tax rate applies to taxpayers with taxable incomes above $187,800 ($93,900 for married individuals filing separately).

  • Personal Exemptions – the exemption is subject to a phase-out that begins with adjusted gross income of $261,500
    1. Married Jointly – starts to phase out $313,800
  • Foreign Earned Income Exclusion – Increased by $800 to $102,100
  • Earned Income Credit – The EIC for taxpayers filing Jointly who have 3 or more qualifying children is $6,318
  • Flexible Spending Arrangement – Contribution limits will remain at $2,600

Healthcare Coverage – Limits are increasing for tax-deferred Medical Savings Account (MSAs) for the self-employed. the maximum deductible amount for out-of-pocket expenses for self-only coverage ($4,500), the deductible limit on a plan with family coverage ($6,750) and the minimum deductible amount for annual family coverage ($4,500) have all increased by $50. The limit on out-of-pocket medical expenses under family coverage ($8,250) increased be $100.

Affordable Care Act – The President has vowed to repeal and he may have sufficient support in Congress to do so, but for now, the ACA remains the law. People who avoided signing up for health insurance in anticipation of changes are still subject to the lack-of-coverage penalty. The penalty for the 2016 tax year increased to either 2.5% of household AGI or a maximum of $2,085 ($695 per adult, $347.50 per child). For the 2017 tax year, the percentage stays the same, but the per person fee will be inflation adjusted.

Deductions for Senior Medical Expenses – One potential tax advantage in medical expenses for seniors is going away in 2017. In order to claim a deduction for medical expenses when itemizing, your qualified medical expenses must be greater than 10% of your adjusted gross income (AGI). An exception to this rule allowed seniors to deduct medical expenses over 7.5% of income, but that exception ended after the 2016 tax year.

Table 1. Single Taxable Income Tax Brackets and Rates, 2017
Rate Taxable Income Bracket Tax Owed

10%

$0 to $9,325 10% of Taxable Income

15%

$9,325 to $37,950 $932.50 plus 15% of the excess over $9325

25%

$37,950 to $91,900 $5,226.25 plus 25% of the excess over $37,950

28%

$91,900 to $191,650 $18,713.75 plus 28% of the excess over $91,900

33%

$191,650 to $416,700 $46,643.75 plus 33% of the excess over $191,650

35%

$416,700 to $418,400 $120,910.25 plus 35% of the excess over $416,700

39.60%

$418,400+ $121,505.25 plus 39.6% of the excess over $418,400
Table 2. Married Filing Joint Taxable Income Tax Brackets and Rates, 2017
Rate Taxable Income Bracket Tax Owed

10%

$0 to $18,650 10% of taxable income

15%

$18,650 to $75,900 $1,865 plus 15% of the excess over $18,650

25%

$75,900 to $153,100 $10,452.50 plus 25% of the excess over $75,900

28%

$153,100 to $233,350 $29,752.50 plus 28% of the excess over $153,100

33%

$233,350 to $416,700 $52,222.50 plus 33% of the excess over $233,350

35%

$416,700 to $470,700 $112,728 plus 35% of the excess over $416,700

39.60%

$470,700+ $131,628 plus 39.6% of the excess over $470,700
Table 3. Head of Household Taxable Income Tax Brackets and Rates, 2017
Rate Taxable Income Bracket Tax Owed

10%

$0 to $13,350 10% of taxable income

15%

$13,350 to $50,800 $1,335 plus 15% of the excess over $13,350

25%

$50,800 to $131,200 $6,952.50 plus 25% of the excess over $50,800

28%

$131,200 to $212,500 $27,052.50 plus 28% of the excess over $131,200

33%

$212,500 to $416,700 $49,816.50 plus 33% of the excess over $212,500

35%

$416,700 to $444,500 $117,202.50 plus 35% of the excess over $416,701

39.60%

$444,550+ $126,950 plus 39.6% of the excess over $444,550
Source: IRS.

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