FEDERAL TAX LAW CHANGES THAT BECOME EFFECTIVE JANUARY 1, 2017:
NEW FILING DATES EFFECTIVE JANUARY 1, 2017:
PARTNERSHIPS; LLCs; and S CORPORATIONS ARE ALL DUE MARCH 15TH OR THE 15TH DAY OF THE THIRD MONTH FOLLOWING CLOSE OF TAX YEAR.
C CORPORATIONS AND INDIVIDUAL TAX RETURNS ARE DUE APRIL 15TH.
FBAR RETURNS ARE DUE APRIL 15TH.
Exemption allowance: $4,050 per individual for 2017 (subject to phase-out based on income)
Standard Deduction for Married Filing Joint (MFJ): $12,700
Single Filers $6,350
Head of Household Filers $9,350
Itemized Deductions Phase out starting at MFJ income of $300,000
"High Income Earners" are those classified as single earning over $200,000 and Married Filing Joint earning over $250,000. High income earners will be subject to the new Net Investment Income Tax (NIIT). NIIT is an additional tax of 3.8% on amounts exceeding the threshold.
Additional Medicare Tax on high income earners of .09%
Estate and Gift tax exclusion: $5,250,000
Annual Gift Tax Exclusion per donee: $15,000
Health Savings Accounts; Self-Coverage Only: $3,350
Family Coverage: $6,650
Business Mileage Deduction: 53.5 cents
Medical Mileage Deduction: 17.0 cents
Allowable Federal Deduction for Code Sec. 179 Expense: $500,000 (under review by Congress)(CA does not comply)
Effective January 1, 2015 California now issues Earned Income Tax Credits.
Your contact person:
Barbara J. Ford, CPA MBA