Happy New Year!

Happy New Year!

normal_new_year_happynewyear2017…….New Year…new tax figures, phaseouts, etc. Here are a few…..

Deductible Medical—– now EVERYONE can only deduct those qualified expenses that are over 10% of adjusted gross income.  For the last couple years it’s been 7.5% for those 65 and over but that has come to an end.

Earned Income Tax Credit– a maximum of $6,318 for those with 3 or more children

Foreign Earned Income Exclusion – went up the $102,100.

Personal exemption (amount you normally get to deduct from taxable income per person)- $4,050

You start losing the ability to deduct this when adjusted gross income exceeds $261,500 if Single, $313,800 if Married Filing Joint, $287,650 is Head of Household, $156,900 if Married Filing Separate.

Kiddie Tax – kids under 19 or under 24 if a college student – a higher tax if they have over $2,100 in unearned income.

Student Loan Interest Deduction – Up to $2,500 deductible.  Lose the ability to deduct when income exceeds $65,000 ($135,000 Married Filing Joint).

Transportation and Parking Benefits – monthly limit that can be a nontaxable fringe benefit is $255.

 

 

 

Linda Reinhardt

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