Tax Law Changes for 2017

2017 brings several new Tax Law Changes. Taxpayers are starting to think about what they need to prepare for filing their 2016 taxes, however, there have been some tax changes for the 2017 tax year they will also want to know.  These changes are effective 1/1/2017.

Students and/or parents can submit 2017-2018 Free Applications for Federal Student Aid (FAFSA) earlier beginning in 2017.  Taxpayers will be required to provide an earlier year income and tax filing.  For the 2017-2018 application students/parents will use information from their 2015 tax return.  Deadlines for submitting applications can be found at StudentAid.gov/fafsa.

Changes to the Federal Tax brackets will due to inflation are effective in 2017 as well.  The differences are minimal, so Taxpayers without significant changes in income may not need to make any changes to their tax planning and withholding strategies.

2017 Tax Tables

Tax Rate Single Married, Filing Jointly Married, Filing Separately Head of Household 
  2016 2017 2016 2017 2016 2017 2016 2017
10% $0 to $9,275 $0 to $9,325 $0 to $18,550 $0 to $18,650 $0 to $9,275 $0 to 9,325 $0 to $13,250 $0 to $13,350
15% $9,276 to $37,650 $9,326 to $37,950 $18,551 to $75,300 $18,651 to $75,900 $9,276 to $37,650 $9,326 to $37,950 $13,251 to $50,400 $13,351 to $50,800
25% $37,651 to $91,150 $37,951 to $91,900 $75,301 to $151,900 $75,901 to $153,100 $37,651 to $75,950 $37,951 to $76,550 $50,401 to $130,150 $50,801 to $131,200
28% $91,151 to $190,150 $91,901 to $191,650 $151,901 to $231,450 $153,101 to $233,350 $75,951 to $115,725 $76,551 to $116,675 $130,151 to $210,800 $131,201 to $212,500
33% $190,151 to $413,350 $190,651 to $416,700 $231,451 to $413,350 $233,351 to $416,700 $115,726 to $206,675 $116,676 to $208,350 $210,801 to $413,350 $212,501 to $416,700
35% $413,351 to $415,050 $416,701 to $418,400 $413,351 to $466,950 $416,701 to $470,700 $206,676 to $233,475 $208,351 to $235,350 $413,351 to $441,000 $416,701 to $444,550
39.60% $415,051+ $418,401+ $466,951+ $470,701+ $233,476+ $235,351+ $441,101+ $444,551+

Data provided by IRS.gov

Standard deductions for 2017 have increased as follows: Single and Married couples filing separately will see a $50 increase in the standard deduction from $6,300 to $6,350. Head of Household standard deduction will also increase $50 from $9,300 to $9,350. Married couples filing jointly increase $100 from $12,600 to $12,700.

Medical expense deductions will change for certain seniors.  In 2016, taxpayers under age 65 had to have medical expenses exceed 10% of their adjusted gross income before they could take the deduction, while anybody over the age 65 only had to meet 7.5% of their adjusted gross income.  In 2017, there will not be no separation. All taxpayers are required to meet 10% of their adjusted gross income to qualify for the medical expense deduction.