New Tax Changes for 2017
There are several new tax changes for 2017. Some are listed below:
1. Mileage rate for business mileage is 53.5 cents a mile; medical mileage rates drop to 17 cents a mile while moving rates drop to the same 17 cents a mile. Charity mileage stays at 14 cents a mile.
2. IRA Contributions stay at $5500 for those under 50 and $6500 for those over 50.
3. Federal Estate tax exemption increases to $5.45M.
4. Health Insurance penalties increase to 3% of Modified Adjusted Gross Income.
5. Personal Exemption for 2016 tax year is increased to $4050.
6. The Standard Deduction has increased to $12,700 for MFJ under 65; for those over 65 the Standard Deduction increases to $14,800.
7. Health Savings Accounts have increased to $6750.
8. For those over 68 the medical deduction was still 7.5% of AGI, but for 2017 it increased to 10% across the board.
9. Refunds may not be sent out until after February 15th due to changes in the Earned Income Credit.
10. Tax rates have increased only slightly to where each tax bracket may be paying an increase of only $50.
11. Some of the earning credits (like education credit, adoption credit and others) have increased slightly.
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