2017 Tax Facts

  1. For 2017, the standard deduction is $6,350 for single individuals and to $12,700 for married couples. You'll benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include medical expenses (over 10% of AGI), state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, investment interest and unreimbursed employee business expenses (over 2% of AGI).
  2. For 2017, the personal exemption is $4,050. You'll claim a personal exemption for yourself, your spouse, and each of your dependents. Note: Personal exemptions are phased out for singles with AGI above $261,500 and marrieds with AGI above $313,800. They phase out completely for singles at $384,000 ($436,300 for married couples filing jointly.)
  3. The maximum earnings subject to social security taxes for 2017 is $127,200.
  4. The standard mileage rate is $.53.5 per business mile for 2017.
  5. The maximum annual contribution into a 401(k) plan or a 403(b) plan is $18,000 for 2017. And if you’re 50 or older by December 31, 2017 you can contribute an extra $6,000 into your 401(k) or 403(b) account this year through salary deferrals.
  6. The maximum contribution into an IRA is $5,500 per individual for 2017. And if you’re 50 or older, you can contribute an extra $1,000 for 2017. You have until April 16, 2018 to contribute to your IRA for 2017.