A first look at 2017 income tax bracketswritten by Connor O’Mealy

An early peek at the income tax figures for 2017 is available. This includes estimated ranges for each 2017 tax bracket as well as projections for vast number of inflation-sensitive tax figures. Projections are based on the relevant inflation data recently released by the U.S. Department of Labor. Here are some of the more widely-applicable projected amounts:

Tax Brackets

For 2017, for married taxpayers filing jointly and surviving spouses, the maximum taxable income:

  • 10% bracket is $18,650, ($18,550 in 2016)
  • 15% tax bracket, $75,900 ($75,300 in 2016)
  • 25% tax bracket, $153,100 ($151,900 in 2016)
  • 28% tax bracket, $233,350 ($231,450 in 2016)
  • 33% tax bracket, $416,700 ($413,350 in 2016)
  • 35% tax bracket, $470,700 ($466,950 in 2016)
  • 6% for all taxable income above that 35-percent bracket’s maximum income level.

For heads of household, the maximum taxable income for the:

  • 10% bracket is $13,350 ($13,250 in 2016)
  • 15% tax bracket, $50,800 ($50,400 in 2016)
  • 25% tax bracket, $131,201 ($130,150 in 2016)
  • 28% tax bracket, $212,500 ($210,800 in 2016)
  • 33% tax bracket, $416,700 ($413,350 in 2016)
  • 35% tax bracket, $446,700 ($441,000 in 2016)
  • 6% for all taxable income above that 35-percent bracket’s maximum income level.

For unmarried, single filers who are not heads of household or surviving spouses:

  • 10% bracket is $9,325 ($9,275 in 2016)
  • 15% tax bracket, $37,950 ($37,650 in 2016)
  • 25% tax bracket, $91,900 ($91,150 in 2016)
  • 28% tax bracket, $191,650 ($190,150 in 2016)
  • 33% tax bracket, $416,700 ($413,350 in 2016)
  • 35% tax bracket, $418,400 ($415,050 in 2016)
  • 6% for all taxable income above that 35-percent bracket’s maximum income level.

For married taxpayers filing separately, the maximum taxable income for the:

  • 10% bracket is $9,325 ($9,275 in 2016)
  • 15% tax bracket, $37,950 ($37,650 in 2016)
  • 25% tax bracket, $76,550 ($75,950 in 2016)
  • 28% tax bracket, $116,675 ($115,725 in 2016)
  • 33% tax bracket, $208,350 ($206,675 in 2016)
  • 35% tax bracket, $235,350 ($233,475 in 2016)
  • 6% for all taxable income above that 35-percent bracket’s maximum income level.

Standard Deduction
The 2017 standard deduction will rise to:

  • $6,350 for single taxpayers (up $50)
  • $12,700 for married joint filers (up $100)
  • $9,300 for heads of household (up $50)
  • $1,250 for the additional standard deduction for blind and aged married taxpayers
  • $1,550 for unmarried taxpayers who are blind or aged

For 2017 the “kiddie” deduction used on the returns of children claimed as dependents on their parents’ returns remains $1,050 or $350 plus the individual’s earned income.

Personal Exemptions
The personal exemption will be $4,050 for 2017, the same as for 2016.

Estate and Gift Tax
The 2017 gift tax annual exemption will remain the same at $14,000.
The estate and gift tax applicable exclusion will increase to $5,490,000 ($5,450,000 in 2016)

AMT Exemptions
For 2017, the AMT exemption for:

  • Married joint filers and surviving spouses is projected to be $84,500 ($83,800 in 2016).
  • Heads of household and unmarried single filers, the exemption will be $54,300 ($53,900 in 2016).
  • Married separate filers, the exemption will be $42,250 ($41,900 in 2016).

With these projections based off the relevant inflation data from the U.S. Department of Labor, you can see that there is a lot of expected change in store for the 2017 tax year. Tax planning and consulting is going to be crucial for lowering your tax liability in 2017.

If you have any questions, please contact The Whitlock Company and we will be happy to assist you 417-881-0145.