2017/18 Changes
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See Below for  2017 and 2018 rates and information -

Please contact us for additional information or to request an appointment.

wnw@wneill.com

Accounting Office, 1430 Church Lane, Easton, PA 18040

Effective for 2017/18

IRA Contribution max.  In 2017 limit is $5,500 and $6,500 with age catch-up.

  Standard Deductions & Personal Exemption - 2017 Year

Standard Deduction - MFJ - $12,700 (If one spouse is age 65 use $13,950; if both souses are 65, use $15,200); Single - $6,350 or $7,900 if 65 years of age; Head of Household (HoH) - $9,350 ($10,900).  

Personal Exemption - remains $4,050 for 2017

     Taxable Income Amounts/rates for: Calendar year 2017

Married, filing jointly, taxable income - Rates

$0 - $18,650                 10%

$18,651 - $75,900         15%

$75,901 - $153,100       25% Capital gains & dividend rate starts at 15%

$153,101 - $233,350       28%

$233,351 - $416,700       33%

$416,701  - $470,700      35%  

$470,701+                      39.6% Capital gains & dividend rate increases to 20%

 

Single

$0 - $9,325                   10%

$9,326 - $37,950           15%

$37,951 - $91,900          25% Capital gains & dividend rate starts at 15%

$91,901 - $191,650         28%

$191,651 - $416,700        33%

$416,701 - $418,400        35% 

$418,401+                       39.6% Capital gains & dividend rate increases to 20%

Head of Household

$0 - $13,350                    10%

$13,351 - $50,800             15%

$50,801 - $131,200            25% Capital gains & dividend rate starts at 15&

$131,201 - $212,500          28%

$212,501 - $416,700          33%

$416,701 - $444,560           35%

$444,561+                         39.6%  Capital gains & dividend rate increases to 20%

Married, filing separately

$0 - $9,325                     10%

$9,326 - $37,950                15%

$37,951 - $76.550              25% Capital gains & dividend rate starts at 15%

$76,551 - $116,675             28%

$116,676 - $208,350            33%

$208,351 - $235,350            35% 

$235,351+                           39.6% Capital gains & dividend rate increases to 20%

Special rates:   Capital gains which would ordinarily be in the 10 or 15% brackets are taxed at 0%.  Those ordinarily taxed at 25% or higher are taxed at 15%; above that level, at 20%.

Pennsylvania Individual Income Tax rate - 3.07%

Mileage deductions - - - for 2017

Business use          $.535 per mile

Charitable            $.14 per mile 

Medical/Moving     $.17 per mile

Social Security

Social Security Wage ceiling - $127,200 in 2017.  Early retirement income phase out begins at $16,920 in 2017. No ceiling for Medicare 1.45% tax; additional .9% surtax paid on wages that exceed $200,000.

Self Employed - Health Insurance deduction

Remains 100% in 2017 and later

Minimum wage in Pennsylvania - employers with more than 10 full time employees

 $7.25 for 2017in Pennsylvania; $8.44 in NJ

Federal min.  $7.25 for 2017

Corporate Income Tax Rates - 2017 

0 - $50,000                    15%

$50,000 - $75,000           25%

$75,000 - $100,000          34%

Personal Services Corporations - 35%

Annual Gift tax exclusion is $14,000 for 2017.

Federal estate and gift tax exclusion is $5,490,000 for 2017.

Earned Income credit - 2017 - Taxpayer cannot have Investment income in excess of $3,400, including net rental income.

                                                Phaseout range

Children    Max credit     Begin Income         Ending income

- 0 -        $  510              $8,340                  $15,010

One          3,400              $18,340                $39,617

Two          5,616              $18,340                $45,007

Three        6,318              $18,340                $48,340

Above income levels are higher if Married, Filing Jointly.                                  

The Education credits and Child tax credits are renewed for 2017.

Alternative Minimum tax exemption amounts - 2017

Single        $54,300

Married, Joint    $84,500

Personal exemption phase-out 2017

Single    Begin $261,500 End $384,000

MFJ    Begin $313,800 End $436,300

Itemized deduction Limitations - Income threshold - 2017

Single    $261,500

MFJ    $313,800

The PA Inheritance tax rate is 4.5% for transfers from parents to children.  Gifts or transfers made within one year of death are taxed in addition to transfers effected after death.  A life estate which allows someone the right to remain in a home after transferring ownership has a value subject to the tax.