Tax Updates

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