What Is the Minimum Amount to File Taxes 2017

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Tax Changes You Need to Know for 2017

Updated for Tax Year 2017 • March v, 2022 eleven:50 AM

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OVERVIEW

Various tax changes inevitably occur from year to year. These tin range from small-scale adjustments to the complete elimination of diverse tax provisions. The Internal Acquirement Service has released information on a number of taxation changes for the 2017 tax twelvemonth.

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While much is written well-nigh the length and complexity of the U.Southward. Tax Code, the fact is that much of information technology doesn't apply to the average taxpayer. In reality, taxes tin can be relatively straightforward for many individuals.

However, you should be on the lookout for the various tax changes that inevitably occur from year to year. These tin range from minor adjustments to the complete elimination of diverse tax provisions. The Internal Revenue Service has released information on a number of tax changes for the 2017 tax year. (Don't worry. When you use TurboTax, yous'll e'er be up-to-date with the latest tax laws.)

Inflation adjustments

Inflation increases the cost of appurtenances and services for consumers. To ensure that American taxpayers keep stride with the rising costs of inflation, the IRS periodically adjusts the value of certain deductions and exemptions. With rising deductions and exemptions, yous become to protect more of your coin from condign taxable income.

For tax year 2017, the IRS increased the value of some different tax benefits, while leaving some the aforementioned equally last yr:

• Personal and dependent exemptions remain $4,050
• The standard deduction rises to $6,350 for unmarried, $9,350 for head of household, and $12,700 for married filing jointly
• The maximum earned income revenue enhancement credit rises to $half dozen,318
• The maximum income limit for the EITC rises to $53,930
• The foreign earned income deduction rises to $102,100
• Annual deductible amounts for Health Savings Accounts increases for individuals to $three,400 but with no change for families
• The estate and gift revenue enhancement exclusion rises to $five.49million

According to Jeff Gonzalez, a CPA and the CFO of Los Angeles-based Electric Entertainment, "Aggrandizement adjustments can be a large thing. They don't come every year, simply when they do, they translate into additional money in your pocket."

New strange financial disclosures

One of the latest revenue enhancement buzzwords is "offshore accounts," every bit the IRS has begun taking a closer expect at the foreign holdings of American citizens. During the transitional revenue enhancement year of 2011, merely certain taxpayers had to make foreign disclosures to the IRS. As of 2012 and across, all taxpayers who run across the minimum threshold, which varies by taxation-filing and residence status, must comply.

"If your overseas avails don't exceed $50,000, you don't accept to worry near the new rules," says Gonzalez. "Above that amount, check the IRS reporting limits, which may modify from year to year in the futurity."

For U.S. residents, you have to file information about your foreign holdings if they exceed $50,000 at year-stop, if you're a unmarried filer. Foreign holdings exceeding $75,000 at any time during the year must also exist reported. For joint filers, the limits ascent to $150,000 at any time, and $75,000 at twelvemonth-end.

For U.S. citizens living away, the reporting limits rise dramatically. Single filers need only written report accounts exceeding $200,000 at year-end, or $300,000 at any point during the twelvemonth. For articulation filers, the limits are $400,000 at year-end, or $600,000 at any time during the yr.

The above requirements for filing Class 8938 practice not take the identify of the obligation to file an FBAR (Foreign Bank Account Report, Treasury Course TD F ninety-22.1) to report a fiscal involvement in or signature authority over a strange fiscal account.

Tax increases

2017 continues with the following tax increases started in 2013:

• An additional tax bracket has been added for individuals with taxable income greater than $400,000 and joint filers with taxable income over $450,000
• Tax on long-term capital gains is increased from xv to twenty percent for individuals with taxable income greater than $400,000 and joint filers with taxable income over $450,000
• 3.eight pct Medicare surtax on the lesser of net investment income or modified adapted gross income higher up $200,000 for individuals and $250,000 for articulation filers.
• Additional Medicare payroll tax of 0.nine percent on earned income above $200,000 for individuals and $250,000 for joint filers.

Other changes that will affect taxes

The threshold for unreimbursed medical expenses increased from vii.5 percent to x percent of Adjusted Gross Income (AGI) for about taxpayers in 2014. There was a temporary exemption from Jan. 1, 2013 to Dec. 31, 2016 for individuals age 65 and older and their spouses. For 2017 and 2018, all taxpayers are discipline to a decreased threshold of 7.5 per centum.

Beginning Jan. 1, 2019, the threshold increases to 10 percent of AGI.

While non labeled as tax increases by the IRS, the following will increase the amount of taxes due on single filers with (AGI) greater than $250,000 and joint filers with AGI greater than $300,000:

• Personal exemption phaseout - for every $two,500 of AGI to a higher place these income limits, the $iv,050 (2017) per-person personal exemption will be reduced by ii%. Personal exemption volition be fully phased out for individuals with AGI greater than $384,000 and joint filers with AGI greater than $436,300.
• Itemized deduction phaseout - reduces itemized deductions by 3% of the AGI above the limits (for 2017, that threshold is $313,800 for married couples filing jointly and $287,650 for single filers) to a maximum reduction of 80%.

Call up, with TurboTax, we'll ask you simple questions about your life and help you make full out all the right tax forms. With TurboTax you can exist confident your taxes are done right, from elementary to complex tax returns, no affair what your situation.

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The to a higher place commodity is intended to provide generalized financial information designed to educate a wide segment of the public; it does not give personalized tax, investment, legal, or other business and professional communication. Earlier taking any action, you should always seek the assistance of a professional who knows your particular situation for communication on taxes, your investments, the law, or any other business and professional matters that affect you and/or your concern.

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