Individual Income Tax Planning
Adoption credit
| Adoption credit |
2016 |
2017 |
| Maximum credit |
$13,460 |
$13,570 |
| Phaseout threshold amount |
$201,920 |
$203,540 |
| Completed phaseout amount after |
$241,920 |
$243,540 |
Alternative Minimum Tax (AMT)
| Maximum AMT exemption amount |
2016 |
2017 |
| Married filing jointly or surviving spouse |
$83,800 |
$84,500 |
| Single or head of household |
$53,900 |
$54,300 |
| Married filing separately |
$41,900 |
$42,250 |
| AMT income exemption phaseout threshold |
2016 |
2017 |
| Married filing jointly or surviving spouse |
$159,700 |
$160,900 |
| Single or head of household |
$119,700 |
$120,700 |
| Married filing separately |
$79,850 |
$80,450 |
| AMT tax rate (26% rate applies to AMTI at or below amount; 28% applies to AMTI above amount) |
2016 |
2017 |
| All taxpayers except married filing separately |
$186,300 |
$187,800 |
| Married filing separately |
$93,150 |
$93,900 |
Charitable deductions
| Use of auto |
2016 |
2017 |
| Deductible standard mileage rate |
$0.14 |
$0.14 |
| Charitable fundraising “insubstantial benefit” limitation |
2016 |
2017 |
| Low-cost article (re: unrelated business income) |
$10.60 |
$10.70 |
| Gifts to donor in return for contribution |
2016 |
2017 |
| Token gift maximum cost1 |
$10.60 |
$10.70 |
| Minimum contribution amount1 |
$53.00 |
$53.50 |
| 2% threshold amount2 |
$106 |
$107 |
1 Contribution is fully deductible if minimum contribution amount is met and cost of token gift does not exceed maximum
2 Charitable contribution is fully deductible if the benefit received by the donor doesn’t exceed the lesser of the threshold amount or 2% of the amount of the contribution
Child tax credit
| Amount of credit |
2016 |
2017 |
| Maximum credit per qualifying child |
$1,000 |
$1,000 |
| Phaseout — credit reduced by $50 for each $1,000 or fraction thereof of MAGI over: |
2016 |
2017 |
| Single |
$75,000 |
$75,000 |
| Married Filing Jointly |
$110,000 |
$110,000 |
| Married Filing Separately |
$55,000 |
$55,000 |
| Refundability — up to specified percentage of earned income in excess of specified amount |
2016 |
2017 |
| Percentage |
15% |
15% |
| Amount |
$3,000 |
$3,000 |
Classroom expenses of elementary and secondary school teachers
| Classroom expense deduction |
2016 |
2017 |
| Maximum above-the-line deduction |
$250 |
$250 |
Earned income tax credit (EITC)
| Investment income limit |
2016 |
2017 |
| Excessive investment income limit (“disqualified income limit”) |
$3,400 |
$3,450 |
| Maximum amount of EITC per number of children |
2016 |
2017 |
| 0 children |
$506 |
$510 |
| 1 child |
$3,373 |
$3,400 |
| 2 children |
$5,572 |
$5,616 |
| 3 or more children |
$6,269 |
$6,318 |
| Maximum amount of earned income on which EITC is based (earned income over this amount but under the threshold phaseout amount will not change the amount of the credit received) |
2016 |
2017 |
| 0 children |
$6,610 |
$6,670 |
| 1 child |
$9,920 |
$10,000 |
| 2 or more children |
$13,930 |
$14,040 |
| Threshold phaseout amount for joint filers per number of children |
2016 |
2017 |
| 0 children |
$13,820 |
$13,930 |
| 1 child |
$23,740 |
$23,930 |
| 2 children |
$23,740 |
$23,930 |
| 3 or more children |
$23,740 |
$23,930 |
| Threshold phaseout amount for other filers per number of children |
2016 |
2017 |
| 0 children |
$8,270 |
$8,340 |
| 1 child |
$18,190 |
$18,340 |
| 2 children |
$18,190 |
$18,340 |
| 3 or more children |
$18,190 |
$18,340 |
| Completed phaseout amount for joint filers per number of children |
2016 |
2017 |
| 0 children |
$20,430 |
$20,600 |
| 1 child |
$44,846 |
$45,207 |
| 2 children |
$50,198 |
$50,597 |
| 3 or more children |
$53,505 |
$53,930 |
| Completed phaseout amount for other filers per number of children |
2016 |
2017 |
| 0 children |
$14,880 |
$15,010 |
| 1 child |
$39,296 |
$39,617 |
| 2 children |
$44,648 |
$45,007 |
| 3 or more children |
$47,955 |
$48,340 |
Expatriation
| Covered expatriate |
2016 |
2017 |
| An individual with “average annual net income tax” of more than this amount for the five taxable years ending before his or her loss of citizenship is a covered expatriate for the purposes of IRC §877A(g)(1) |
$161,000 |
$162,000 |
| IRC §877A(3) exclusion amount |
$693,000 |
$699,000 |
Foreign earned income
| Amount excluded from income |
2016 |
2017 |
| Exclusion amount |
$101,300 |
$102,100 |
Itemized deductions
| Phaseout threshold |
2016 |
2017 |
| Married filing jointly |
$311,300 |
$313,800 |
| Head of household |
$285,350 |
$287,650 |
| Unmarried |
$259,400 |
$261,500 |
| Married filing separately |
$155,650 |
$156,900 |
Kiddie tax
| Unearned income limit |
2016 |
2017 |
| Amount exempt from tax |
$1,050 |
$1,050 |
| Additional amount taxed at child’s rate |
$1,050 |
$1,050 |
| Unearned income over this amount taxed at parent’s rate |
$2,100 |
$2,100 |
| Parent’s election |
2016 |
2017 |
| Election to include child’s income on parent’s return — child’s gross income requirement |
$1,050 – $10,500 |
$1,050 – $10,500 |
| AMT |
2016 |
2017 |
| AMT exemption for child subject to kiddie tax |
Lesser of $7,400 + child’s earned income or $53,900 |
Lesser of $7,500 + child’s earned income or $54,300 |
Medicare tax (additional payroll tax and unearned income contribution tax)
| Payroll tax |
2016 |
2017 |
| Additional Medicare payroll tax (and self-employment tax) percentage rate |
0.90% |
0.90% |
| Applies to wages/self-employment income exceeding |
2016 |
2017 |
| Individuals |
$200,000 |
$200,000 |
| Married filing jointly |
$250,000 |
$250,000 |
| Married filing separately |
$125,000 |
$125,000 |
| Tax on unearned income |
2016 |
2017 |
| Unearned income Medicare contribution tax rate |
3.80% |
3.80% |
| Applies to lesser of (a) net investment income or (b) modified adjusted gross income exceeding |
2016 |
2017 |
| Individuals |
$200,000 |
$200,000 |
| Married filing jointly |
$250,000 |
$250,000 |
| Married filing separately |
$125,000 |
$125,000 |
Nanny tax
| Compensation threshold |
2016 |
2017 |
| Domestic employee coverage threshold |
$2,000 |
$2,000 |
Personal exemption amount
| Amount |
2016 |
2017 |
| Personal exemption amount |
$4,050 |
$4,050 |
| Married filing jointly |
2016 |
2017 |
| Phaseout threshold amount |
$311,300 |
$313,800 |
| Completed phaseout amount after |
$433,800 |
$436,300 |
| Head of household |
2016 |
2017 |
| Phaseout threshold amount |
$285,350 |
$287,650 |
| Completed phaseout amount after |
$407,850 |
$410,150 |
| Unmarried |
2016 |
2017 |
| Phaseout threshold amount |
$259,400 |
$261,500 |
| Completed phaseout amount after |
$381,900 |
$384,000 |
| Married filing separately |
2016 |
2017 |
| Phaseout threshold amount |
$155,650 |
$156,900 |
| Completed phaseout amount after |
$216,900 |
$218,150 |
“Saver’s Credit”
| Elective Deferrals and IRA Contributions by Certain Individuals |
2016 |
2017 |
| Maximum credit amount |
$1,000 |
$1,000 |
| Applicable percentage of 50% applies to AGI |
2016 |
2017 |
| Joint Return |
$0 – $37,000 |
$0 – $37,000 |
| Head of Household |
$0 – $27,750 |
$0 – $27,750 |
| Other |
$0 – $18,500 |
$0 – $18,500 |
| Applicable percentage of 20% applies to AGI |
2016 |
2017 |
| Joint Return |
$37,001 – $40,000 |
$37,001 – $40,000 |
| Head of Household |
$27,751 – $30,000 |
$27,751 – $30,000 |
| Other |
$18,501 – $20,000 |
$18,501 – $20,000 |
| Applicable percentage of 10% applies to AGI |
2016 |
2017 |
| Joint Return |
$40,001 – $61,500 |
$40,001 – $62,000 |
| Head of Household |
$30,001 – $46,125 |
$30,001 – $46,500 |
| Other |
$20,001 – $30,750 |
$20,001 – $31,000 |
| Applicable percentage of 0% applies to AGI |
2016 |
2017 |
| Joint Return |
Over $61,500 |
Over $62,000 |
| Head of Household |
Over $46,125 |
Over $46,500 |
| Other |
Over $30,750 |
Over $31,000 |
Standard deductions
| Amounts |
2016 |
2017 |
| Married filing jointly or surviving spouse |
$12,600 |
$12,700 |
| Head of household |
$9,300 |
$9,350 |
| Unmarried |
$6,300 |
$6,350 |
| Married filing separately |
$6,300 |
$6,350 |
| Dependent |
Greater of $1,050 or $350 + earned income |
Greater of $1,050 or $350 + earned income |
| Additional deduction for aged or blind (single or head of household) |
$1,550 |
$1,550 |
| Additional deduction for aged or blind (all other filing statuses) |
$1,250 |
$1,250 |
Standard mileage rates
| Applicable rates |
2016 |
2017 |
| Use of auto for business purposes (cents per mile) |
$0.54 |
$0.535 |
| Use of auto for medical purposes (cents per mile) |
$0.19 |
$0.17 |
| Use of auto for moving purposes (cents per mile) |
$0.19 |
$0.17 |
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