AMT EXEMPTION
| AMT EXEMPTION |
2017 |
| Foreign Source Taxable Income |
$1,000,000 |
| Foreign Income Taxes (34%) |
$340,000 |
| U.S. Individual Federal Income Taxes (39.6%) |
$396,000 |
| Less Direct Foreign Tax Credit |
($340,000) |
| Total U.S. and Foreign Taxes |
$396,000 |
| |
|
| U.S. Effective Tax Rate |
39.60% |
Note: As AGI increases over a certain thresh- old, the AMT exemption is phased out.
2017 CORPORATE TAX RATES
| OVER |
BUT NOT OVER |
THE TAX IS |
OF THE AMOUNT OVER |
| $– |
$50,000 |
15% |
$– |
| $50,000 |
$75,000 |
$7,500 + 25% |
$50,000 |
| $75,000 |
$100,000 |
$13,750 + 34% |
$75,000 |
| $100,000 |
$335,000 |
$22,250 + 39% |
$100,000 |
| $335,000 |
$10,000,000 |
$113,900 + 34% |
$335,000 |
| $10,000,000 |
$15,000,000 |
$3,400,000 + 35% |
$10,000,000 |
| $15,000,000 |
$18,333,333 |
$5,150,000 + 38% |
$15,000,000 |
| $18,333,333 |
— |
35% |
— |
INFLATION/COST OF LIVING TAX UPDATES
| TAX BENEFIT |
2017 |
| Personal/Dependent Exemption |
$4,050 |
| STANDARD DEDUCTION |
| Married Filing Joint |
$12,700 |
| Single |
$6,350 |
| Married Filing Separately |
$6,350 |
| Head of Household |
$9,350 |
| Foreign Earned Income Exclusion |
$102,100 |
| Maximum Taxable Social Security Earnings Base |
$127,200 |
PHASE-OUT OF ITEMIZED DEDUCTIONS: THE “PEASE” LIMITATIONS
| FILING STATUS |
AGI THRESHOLD FOR PEASE LIMITATION 2017 |
| Married Filing Jointly |
$313,800 |
| Married Filing Separately |
$156,900 |
| Single |
$261,500 |
| Head Of Household |
$287,650 |
Subject to limitations, certain itemized deductions are phased out once Adjusted Gross Income (AGI) exceeds certain thresholds.
2017 INDIVIDUAL INCOME TAX RATES
| RATE |
SINGLE |
HEAD OF HOUSEHOLD |
MARRIED-JOINT |
MARRIED-SEPARATE |
| 10% |
$0 – $9,325 |
$0 – $13,350 |
$0 – $18,650 |
$0 – $9,325 |
| 15% |
$9,326 – $37,950 |
$13,351 – $50,800 |
$18,651 – $75,900 |
$9,326 – $37,950 |
| 25% |
$37,951 – $91,900 |
$50,801 – $131,200 |
$75,901 – $153,100 |
$37,951 – $76,550 |
| 28% |
$91,901 – $191,650 |
$131,201 – $212-500 |
$153,101 – $233,350 |
$76,551 – $116,675 |
| 33% |
$191,651 – $416,700 |
$212,501 – $416,700 |
$233,351 – $416,700 |
$116,676 – $208,350 |
| 35% |
$416,701 – $470,700 |
$416,701 – $444,550 |
$416,701 – $470,700 |
$208,351 – $235,350 |
| 39.60% |
Over $470,701 |
Over $444,551 |
Over $470,701 |
Over $235,351 |
2017 TAXABLE INCOME THRESHOLD
| FILING STATUS |
2017 TAXABLE INCOME THRESHOLD FOR THE 20% RATE FOR LONG-TERM CAPITAL GAIN AND QUALIFIED DIVIDENDS |
| Married Filing Jointly |
$470,700 |
| Head of Household |
$444,550 |
| Single |
$418,400 |
| Married Filing Separately |
$235,350 |
| Trust & Estates |
$12,500 |
DOLLAR LIMITS FOR RETIREMENT PLANS
| PLAN TYPES |
2017 LIMITS |
| Defined contribution plans |
$54,000 |
| Defined benefit plans |
$270,000 |
| Defined contribution plans – 401(k), 403(b) and 457 plans: Under age 50 |
$18,000 |
| Age 50 and older |
$24,000 |
| SIMPLE plans: Under age 50 |
$12,500 |
| Age 50 and older |
$15,500 |
| IRA, traditional and Roth: Under age 50 |
$5,500 |
| Age 50 and older |
$6,500 |
| IRA AGI Phase-Out (married) |
$99,000 |
| IRA AGI Phase-Out (single/HOH) |
$62,000 |
| OTHER THRESHOLDS |
2017 LIMITS |
| SEP Annual compensation limit |
$270,000 |
| Key employee in a top-heavy plan |
$175,000 |
| Highly compensated employee |
$120,000 |
| Social Security Wage Base |
$127,200 |
2017 ESTATES AND TRUSTS TAX RATES
| OVER |
BUT NOT OVER |
THE TAX IS |
OF THE AMOUNT OVER |
| $– |
$2,550 |
15% |
$– |
| $2,551 |
$5,950 |
$382.50 + 25% |
$2,550 |
| $5,951 |
$9,050 |
$1,232.50 + 28% |
$5,950 |
| $9,051 |
$12,400 |
$2,100.50 + 33% |
$9,050 |
| $12,401 |
$– |
$3,206 + 39.6% |
$12,400 |
GIFT & ESTATE TAX EXEMPTION
| |
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
| Gift Tax Exemption |
$5,120,000 |
$5,250,000 |
$5,340,000 |
$5,430,000 |
$5,450,000 |
5,490,000 |
| Estate Tax Exemption |
$5,120,000 |
$5,000,000 |
$5,340,000 |
$5,430,000 |
$5,450,000 |
5,490,000 |
| GST Tax Exemption |
$5,120,000 |
$5,250,000 |
$5,340,000 |
$5,430,000 |
$5,450,000 |
5,490,000 |
| Highest Estate & Gift Tax Rates |
35% |
40% |
40% |
40% |
40% |
40% |
