Tax Law Changes For The 2017 Year

  • Each taxpayer and their dependents must have maintained ‘minimum essential coverage’ for healthcare under The Affordable Care Act. Please bring form 1095-A, 1095-B or 1095-C to your tax appointment.”
  • Tax refunds may be direct deposited into your bank account.
  • The personal exemption amount has increased to $4,050 and the standard deduction has increased to $12,600 for joint returns and $6,300 for single returns.
  • IRA and ROTH deductions remain $5,500 and $6,500 for those over age 50.
  • The standard mileage rate for business travel is 54 cents. Medical mileage is 19 cents. The charitable rate remains at 14 cent per mile.
  • The deduction for Mortgage Insurance premiums has again been extended through 2016. This would apply only to new mortgages taken out after Dec 31, 2006.
  • Student loan interest is still deductible up to a maximum of $2,500.
  • The American Opportunity Credit has been made permanent for the first 4 years of college, up to $2,500 per student.
  • Alternative Minimum Tax (AMT). Congress has again acted to block the growth of the alternative minimum tax for 2016. This will put off an economic hardship for those taxpayers earning more than $83,800.
  • All Contribution of cash must be substantiated with dated receipts, cancelled checks, or credit card statements to prove the deduction. Contributions of clothing and household items are limited to items documented in good or better condition.
  • The Kiddie Tax is still in effect for children under age 19. If you have dependent children under 19 years old with interest and dividend income not in an education account, of over $2,100, please bring that information.
  • Capital Gains are not taxed again this year if your taxable income is less than $75,300 MFJ, $37,650 Single.
  • For single taxpayers earning over $200,000 and couples earning over $250,000, there will be an additional 3.8% tax applied to investment income (interest, dividends, capital gains, and S-corp profits). The purpose of this new law is to help fund Medicare.