Insights

Important Tax Figures for 2017

This table provides some important federal tax information for 2017, as compared with 2016. Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation.

Social Security/ Medicare	2017	2016
Social Security Tax Wage Base	$127,200	$118,500
Medicare Tax Wage Base	No limit	No limit
Employee portion of Social Security	6.2%	6.2%
Individual Retirement Accounts	2017	2016
Roth IRA Individual, up to 100% of earned income	$5,500	$5,500
Traditional IRA Individual, up to 100% of earned Income	$5,500	$ 5,500
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older	$1,000	$ 1,000
Qualified Plan Limits	2017	2016
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A)	$54,000	$ 53,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A))	$215,000	$210,000
Maximum compensation used to determine contributions	$270,000	$265,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2))	$ 18,000	$ 18,000
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older	$ 6,000	$ 6,000
SIMPLE deferrals (Section 408(p)(2)(A))	$ 12,500	$ 12,500
SIMPLE additional “catch-up” contributions for employees age 50 and older	$ 3,000	$ 3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B))	$120,000	$120,000
Compensation defining key employee (officer)	$175,000	$170,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c))	$600	$600
Driving Deductions	2017	2016
Business mileage, per mile	53.5 cents	54 cents
Charitable mileage, per mile	14 cents	14 cents
Medical and moving, per mile	17 cents	19 cents
Business Equipment	2017	2016
Maximum Section 179 deduction	$510,000	$500,000
Phase out for Section 179	$2.03 million	$2.01 million
Transportation Fringe Benefit Exclusion	2017	2016
Monthly commuter highway vehicle and transit pass	$255	$255
Monthly qualified parking	$255	$255
Standard Deduction	2017	2016
Married filing jointly	$12,700	$12,600
Single (and married filing separately)	$6,350	$6,300
Heads of Household	$9,350	$9,300
Personal Exemption	2017	2016
Amount	$4,050	$4,050
Personal Exemption Phaseout	2017	2016
Married filing jointly and surviving spouses	Begins at $313,800	Begins at $311,300
Heads of Household	Begins at $287,650	Begins at $285,350
Unmarried individuals	Begins at $261,500	Begins at $259,400
Married filing separately	Begins at $156,900	Begins at $155,650
Domestic Employees	2017	2016
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc.	$ 2,000	$ 2,000
Kiddie Tax	2017	2016
Net unearned income not subject to the “Kiddie Tax”	$ 2,100	$ 2,100
Estate Tax	2017	2016
Federal estate tax exemption	$5.49 million	$5.45 million
Maximum estate tax rate	40%	40%
Annual Gift Exclusion	2017	2016
Amount you can give each recipient	$14,000	$14,000

John M. Stern, CPA/PFS, is the Managing Partner at PKS & Company, P.A., Certified Public Accountants, a full service accounting firm with offices in Salisbury, Ocean City, MD and Lewes, DE. PKS provides traditional accounting services as well as specialized services in the areas of retirement plan audits and administration, medical practice consulting, estate and trust services, fraud and forensic services and payroll services and offers financial planning and investments through PKS Investment Advisors, LLC. Visit www.pkscpa.com or call 1-800-274-2564.