![]() For 2017, the adjusted gross income amount used to determine the reduction in the Lifetime Learning Credit is $56,000 ($112,000 for joint filers).Ĭhanges were also made to certain tax deductions, deferrals & exclusions for 2017. As with the Hope Scholarship Credit, income restrictions apply to the Lifetime Learning Credit. That means that the maximum Hope Scholarship Credit allowable for 2017 is $2,500. The Hope Scholarship Credit for 2017 will remain an amount equal to 100% of qualified tuition and related expenses not in excess of $2,000 plus 25% of those expenses in excess of $2,000 but not in excess of $4,000. Phaseouts do apply beginning at taxpayers with modified adjusted gross income (MAGI) in excess of $203,540 and completely phased out for taxpayers with MAGI of $243,540 or more. For 2017, the credit allowed for an adoption of a child with special needs is $13,570, and the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $13,570. Keep in mind that this is the value of the expenses used to determine the credit and not the actual amount of the credit. For 2017, the value used to determine the amount of credit that may be refundable is $3,000 (the credit amount has not changed). The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds, and phase-outs. For 2017, the maximum EITC amount available is $6,318 for taxpayers filing jointly who have 3 or more qualifying children. Some tax credits are also adjusted for 2017. All unearned income in excess of $2,100 is taxed at the parent’s tax rate. For 2017, the threshold for the kiddie tax - meaning the amount of unearned net income that a child can take home without paying any federal income tax - is $1,050. The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24. The AMT exemption amounts are as follows: ![]() In years past, the AMT was subject to a last-minute scramble by Congress to “patch” the exemption but as part of the American Taxpayer Relief Act of 2012 (ATRA), the AMT exemption amounts are permanently adjusted for inflation - that's why you now see it in this list. It phases out completely at $384,000 ($436,300 for married couples filing jointly). However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $261,500 ($313,800 for married couples filing jointly). The personal exemption amount for 2017 is $4,050, the same as 2016. Taxpayers over the age of 65 could use the 7.5% floor through 2016: in 2017, the favored tax rate disappears and all taxpayers are subject to the 10% floor. ![]() Keep in mind that the floor for medical expenses in 2017 is 10% of adjusted gross income (AGI) for all taxpayers. (You can read more about the Pease limitations and how they affect affluent taxpayers here.) They do not apply to medical expenses, investment expenses, gambling losses, and certain theft and casualty losses. ![]() Pease limitations apply to charitable donations, the home mortgage interest deduction, state and local tax deductions and miscellaneous itemized deductions. 80% of the amount of itemized deductions otherwise allowable for the tax year. ![]() 3% of AGI above the applicable threshold or.If the Pease limitations apply, the total of all your itemized deductions is reduced by the lesser of: Don Pease (D-OH) may cap or phase out certain deductions for high-income taxpayers. The additional standard deduction amount is increased to $1,550 if the individual is also unmarried and not a surviving spouse.įor 2017, the standard deduction for a taxpayer who can be claimed as a dependent by another taxpayer cannot exceed the greater of (a) $1,050 or (b) $350 + the dependent's earned income.įor those taxpayers who itemize their deductions, the Pease limitations, named after former Rep. For 2017, the additional standard deduction amount for the aged or the blind is $1,250. ![]()
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