Individual Income Tax

Some changes in 2017 Tax Returns

• The standard deduction rises to $6,350 for single, $9,350 for head of household, and $12,700 for married filing jointly
• The maximum earned income tax credit rises to $6,318
• The maximum income limit for the EITC rises to $53,930
• The foreign earned income deduction rises to $102,100Annual deductible amounts for Health Savings Accounts increases for individuals to $3,400 but with no change for families
• The estate and gift tax exclusion rises to $5.49million
• An additional tax bracket has been added for individuals with taxable income greater than $400,000 and joint filers with taxable income over $450,000
• Tax on long-term capital gains is increased from 15 to 20 percent for individuals with taxable income greater than $400,000 and joint filers with taxable income over $450,000
• 3.8 percent Medicare surtax on the lesser of net investment income or modified adjusted gross income above $200,000 for individuals and $250,000 for joint filers
• Additional Medicare payroll tax of 0.9 percent on earned income above $200,000 for individuals and $250,000 for joint filers.
• The threshold for unreimbursed medical expenses increased from 7.5 percent to 10 percent of Adjusted Gross Income (AGI) for most taxpayers in 2014. There was a temporary exemption from Jan. 1, 2013 to Dec. 31, 2016 for individuals age 65 and older and their spouses. For 2017 and 2018, all taxpayers are subject to a decreased threshold of 7.5 percent.
• For U.S. residents, you have to file information about your foreign holdings if they exceed $50,000 at year-end, if you're a single filer. Foreign holdings exceeding $75,000 at any time during the year must also be reported. For joint filers, the limits rise to $150,000 at any time, and $75,000 at year-end.
• For U.S. citizens living abroad, the reporting limits rise dramatically. Single filers need only report accounts exceeding $200,000 at year-end, or $300,000 at any point during the year. For joint filers, the limits are $400,000 at year-end, or $600,000 at any time during the year.