Tax Updates and Changes for 2017


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Nicholas Aiola, CPA - Tax Updates and Changes for 2017 - Happy New Year

Happy New Year!

 

New year, new you…and new and exciting tax updates! I hope you saved some champagne to celebrate. Let this post serve as your quick reference guide as we enter the 2017 tax season.

 

New Due Dates

Below are the revised due dates for tax returns that are due in 2017 and on (note – some due dates have not changed; due dates that have changed will be listed in bold).

 

Return Type & Form

Old Due Dates:
Original Due Date
Extended Due Date

New Due Dates:

Original Due Date

Extended Due Date

Individual – Form 1040 April 15
October 15
April 15
October 15
Partnership (calendar year) – Form 1065 April 15
September 15
March 15
September 15
S Corporation (calendar year) – Form 1120S March 15
September 15
March 15
September 15
Trust & Estate (calendar year) – Form 1041 April 15
September 15
April 15
September 30
C Corporation (calendar year) – Form 1120 March 15
September 15
April 15
September 15 (will change to October 15 after 12/31/25)
C Corporation (fiscal year-end other than 12/31 or 6/30) – Form 1120 15th day after 3rd month after year-end
15th day after 9th month after year-end
15th day after 4th month after year-end
15th day after 10th month after year-end
C Corporation (6/30 fiscal year-end) – Form 1120 September 15
March 15
September 15 (will change to October 15 after 12/31/25)
April 15
Exempt Organizations (calendar year) – Form 990 May 15
August 15
November 15 (second extension)
May 15
November 15
Employee Benefit Plans – Form 5500 July 31
October 15
July 31
October 15
Foreign Trusts with US Owner – Form 3520-A March 15
September 15
March 15
September 15
Foreign Bank Account Report (FBAR) – FinCEN Form 114 June 30 April 15
October 15
Information Returns – Form W-2, Forms 1099, etc. February 28 (March 31 if e-filed) Form W-2 & certain Forms 1099-MISC – January 31. All other Forms 1099 – February 28 (March 31 if e-filed)

 

Most states are expected to follow the federal due date changes (New York is one of the states that has already enacted legislation to change their due dates to be in accordance with the IRS).

 

2017 Tax Rates & Other Updates

Below you can see all the inflation-adjusted tax updates for 2017.

 

The tax rate tables have been updated for 2017:

 

Single:

Taxable Income Tax Rate
$0 to $9,325 10%
$9,326 to $37,950 $932.50 plus 15% of the amount over $9,325
$37,951 to $91,900 $5,226.25 plus 25% of the amount over $37,950
$91,901 to $191,650 $18,713.75 plus 28% of the amount over $91,900
$191,651 to $416,700 $46,643.75 plus 33% of the amount over $191,650
$416,701 to $418,400 $120,910.25 plus 35% of the amount over $416,700
$418,401 or more $121,505.25 plus 39.6% of the amount over $418,400

Married Filing Jointly or Qualifying Widow(er):

Taxable Income Tax Rate
$0 to $18,650 10%
$18,651 to $75,900 $1,865 plus 15% of the amount over $18,650
$75,901 to $153,100 $10,452.50 plus 25% of the amount over $75,900
$153,101 to $233,350 $29,752.50 plus 28% of the amount over $153,100
$233,351 to $416,700 $52,222.50 plus 33% of the amount over $233,350
$416,701 to $470,700 $112,728 plus 35% of the amount over $416,700
$470,701 or more $131,628 plus 39.6% of the amount over $470,700

Married Filing Separately:

Taxable Income Tax Rate
$0 to $9,325 10%
$9,326 to $37,950 $932.50 plus 15% of the amount over $9,325
$37,951 to $76,550 $5,226.25 plus 25% of the amount over $37,950
$76,551 to $116,675 $14,876.25 plus 28% of the amount over $76,550
$116,676 to $208,350 $26,111.25 plus 33% of the amount over $116,675
$208,351 to $235,350 $56,364 plus 35% of the amount over $208,350
$235,351 or more $65,814 plus 39.6% of the amount over $235,350

Head of Household:

Taxable Income Tax Rate
$0 to $13,350 10%
$13,351 to $50,800 $1,335 plus 15% of the amount over $13,350
$50,801 to $131,200 $6,952.50 plus 25% of the amount over $50,800
$131,201 to $212,500 $27,052.50 plus 28% of the amount over $131,200
$212,501 to $416,700 $49,816.50 plus 33% of the amount over $212,500
$416,701 to $444,500 $117,202.50 plus 35% of the amount over $416,700
$444,501 or more $126,950 plus 39.6% of the amount over $444,500

Estates and Trusts:

Taxable Income Tax Rate
$0 to $2,550 15%
$2,551 to $5,950 $382.50 plus 25% of the amount over $2,550
$5,951 to $9,050 $1,232.50 plus 28% of the amount over $5,950
$9,051 to $12,400 $2,100.50 plus 33% of the amount over $9,050
$12,401 or more $3,206 plus 39.6% of the amount over $12,400

 

Click here to see current and prior tax rate schedules.

 

The standard deductions in 2017 have increased slightly from 2016:

 

Filing Status 2017 Standard Deduction 2016 Standard Deduction
Single $6,350 $6,300
Married Filing Jointly $12,700 $12,600
Married Filing Separately $6,350 $6,300
Head of Household $9,350 $9,300

 

High-income taxpayers are unfortunately familiar with phaseouts and deduction limits, which basically means that if you make over a certain amount of money, the deductions you are entitled to will begin to phase out until they eventually reach zero (the more you make, the less of a deduction you receive).

 

While the personal exemption for 2017 remains the same at $4,050, the personal exemption phaseout (PEP) thresholds have increased.

 

Filing Status

2017 2016
AGI Where PEP Begins AGI Where PEP Ends AGI Where PEP Begins AGI Where PEP Ends
Single $261,500 $384,000 $259,400 $381,900
Married Filing Jointly $313,800 $436,300 $311,300 $433,800
Married Filing Separately $156,900 $218,150 $155,650 $216,900
Head of Household $287,650 $410,150 $285,350 $407,850

 

If you itemize your deductions, you should be conscious of the Pease limitations, which limit itemized deductions for high-income taxpayers.

 

Filing Status 2017 AGI Where Pease Limitation Begins 2016 AGI Where Pease Limitation Begins
Single $261,500 $259,400
Married Filing Jointly $313,800 $311,300
Married Filing Separately $156,900 $155,650
Head of Household $287,650 $285,350

 

Alternative Minimum Tax (AMT) Exemptions have also increased:

 

Filing Status 2017 2016
Single $54,300 $53,900
Married Filing Jointly $84,500 $83,800
Married Filing Separately $42,250 $41,900
Head of Household $54,300 $53,900
Trusts & Estates $24,100 $24,100

 

Other deduction and credit amounts have been adjusted for inflation as well. If you would like to find out more about tax updates that were not mentioned here, give me a call or shoot me an email.

 

Tips Heading Into Tax Season

  • Stay Organized – Keep a folder of all important tax documents, records, and receipts that relate to 2016 so when you are ready to file, you have all your papers in one place. This will make your…and your accountant’s…life much easier during busy season.

 

  • File early, if possible – this is one way to avoid the chances of having a fraudulent tax return filed in your name by an identity thief. Beat scammers to the punch and file your return as soon as you can. Click here to learn more about IRS scams.

 

  • Stay in the loop – the tax law is always changing and with Trump taking the wheel, you can expect more dramatic changes during his term. Follow me on Twitter to stay updated.

Nick Aiola is a CPA located in New York, NY. Nick provides tax and accounting services to a wide range of clients, including individuals, businesses, and fiduciary entities.

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