2016-2017 Tax Table

The following table provides some important federal tax information for 2017, as compared with 2016. Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation. We will keep you updated if any other changes occur with the new administration. Social Security/Medicare2017 2016Social Security Tax Wage Base$127,200$118,500 Medicare Tax Wage BaseNo limitNo limitEmployee portion of Social Security6.20%6.20%Individual Retirement Accounts20172016Roth IRA Individual, up to 100% of earned income$5,500$5,500 Traditional IRA Individual, up to 100% of earned Income$5,500$5,500 Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older$1,000$1,000 Qualified Plan Limits20172016Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)$54,000$53,000Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))$215,000$210,000 Maximum compensation used to determine contributions$270,000$265,000 401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))$18,000$18,000 401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older$6,000$6,000 SIMPLE deferrals (Section 408(p)(2)(A))$12,500$12,500 SIMPLE additional “catch-up” contributions for employees age 50 and older$3,000$3,000 Compensation defining highly compensated employee (Section 414(q)(1)(B))$120,000$120,000 Compensation defining key employee (officer)$175,000$170,000 Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))$600$600 Driving Deductions20172016Business mileage, per mile53.5 cents54 centsCharitable mileage, per mile14 cents14 centsMedical and moving, per mile17 cents19 centsBusiness Equipment20172016Maximum Section 179 deduction$510,000$500,000 Phase out for Section 179$2.03 million$2.01 millionTransportation Fringe Benefit Exclusion20172016Monthly commuter highway vehicle and transit pass$255$255 Monthly qualified parking$255$255 Standard Deduction20172016Married filing jointly$12,700$12,600 Single (and married filing separately)$6,350$6,300 Heads of Household$9,350$9,300 Personal Exemption20172016Amount$4,050$4,050 Personal Exemption Phaseout20172016Married filing jointly and surviving spousesBegins at $313,800Begins at $311,300Heads of HouseholdBegins at $287,650Begins at $285,350Unmarried individualsBegins at $261,500Begins at $259,400Married filing separatelyBegins at $156,900Begins at $155,650Domestic Employees20172016Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.$2,000$2,000 Kiddie Tax20172016Net unearned income not subject to the “Kiddie Tax”$2,100$2,100 Estate Tax20172016Federal estate tax exemption$5.49 million$5.45 millionMaximum estate tax rate40%40%Annual Gift Exclusion20172016Amount you can give each recipient$14,000$14,000