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Clearwater, FL 33761
Sand Dollar Services, Inc.
We are glad you have found us!
Sand Dollar Services, Inc.
to help the Small Business or the Individual
taxpayer in solving their accounting and tax issues.
highlights of tax provisions that will impact the 2017 taxes. Please
let us know if you have questions about any of these or would like to meet with
us for 2017 tax planning. A lot of changes
are being made, so stay tuned to our website for updates.
Mileage Deductions Rates for 2017
miles – 53.5 cents/mile
miles – 14 cents/mile
moving miles –17 cents/mile
Other changes for 2017
standard deduction for married filing jointly rises to $12,700 for tax
year 2017, up $100 from the prior year. For single taxpayers and
married individuals filing separately, the standard deduction rises to
$6,350 in 2017, up from $6,300 in 2016, and for heads of households,
the standard deduction will be $9,350 for tax year 2017, up from $9,300
for tax year 2016.
- The personal exemption for tax year 2017
remains as it was for 2016: $4,050. 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.)
tax year 2017, the 39.6 percent tax rate affects single taxpayers whose
income exceeds $418,400 ($470,700 for married taxpayers filing
jointly), up from $415,050 and $466,950, respectively. The other
marginal rates – 10, 15, 25, 28, 33 and 35 percent – and the related
income tax thresholds for tax year 2017 are described in the revenue
- The limitation for itemized deductions to be claimed
on tax year 2017 returns of individuals begins with incomes of $287,650
or more ($313,800 for married couples filing jointly).
Alternative Minimum Tax exemption amount for tax year 2017 is $54,300
and begins to phase out at $120,700 ($84,500, for married couples
filing jointly for whom the exemption begins to phase out at $160,900).
The 2016 exemption amount was $53,900 ($83,800 for married couples
filing jointly). For tax year 2017, the 28 percent tax rate
applies to taxpayers with taxable incomes above $187,800 ($93,900 for
married individuals filing separately).
- The tax year 2017
maximum Earned Income Credit amount is $6,318 for taxpayers filing
jointly who have 3 or more qualifying children, up from a total of
$6,269 for tax year 2016. The revenue procedure has a table providing
maximum credit amounts for other categories, income thresholds and
- For tax year 2017, the monthly limitation for the
qualified transportation fringe benefit is $255, as is the monthly
limitation for qualified parking,
- For calendar year 2017, the
dollar amount used to determine the penalty for not maintaining minimum
essential health coverage is $695.
- For tax year 2017
participants who have self-only coverage in a Medical Savings Account,
the plan must have an annual deductible that is not less than $2,250
but not more than $3,350; these amounts remain unchanged from 2016. For
self-only coverage the maximum out of pocket expense amount is
$4,500, up $50 from 2016. For tax year 2017 participants with family
coverage, the floor for the annual deductible is $4,500, up from $4,450
in 2016, however the deductible cannot be more than $6,750, up $50 from
the limit for tax year 2016. For family coverage, the out of pocket
expense limit is $8,250 for tax year 2017, an increase of $100 from
tax year 2016.
- For tax year 2017, the adjusted gross
income amount used by joint filers to determine the reduction in the
Lifetime Learning Credit is $112,000, up from $111,000 for tax year
- For tax year 2017, the foreign earned income exclusion is $102,100, up from $101,300 for tax year 2016.
of decedents who die during 2017 have a basic exclusion amount of
$5,490,000, up from a total of $5,450,000 for estates of decedents who
died in 2016.
How Marginal Tax Rates are Used
Individuals can use the tax rate
schedules in a number of ways to help plan their finances. You can use these tax
rates to figure out how much tax you will pay on extra income you earn. For a
taxpayer in the 25% tax bracket, extra income will be taxed at that rate until
the taxpayer reaches the next tax bracket. Alternatively, you can use these tax
rates to figure out how much tax you will save by increasing your deductions.
For a taxpayer in the 28% tax bracket will save 28 cents in federal tax for
every dollar spent on a tax-deductible expense, such as mortgage interest or
us a call, or e-mail us. We look forward to serving you.