Odds Are Good For Significant Tax Reform 2017 starts with one set of rules... but we expect there will be major changes. Odds are good for significant tax reform. Donald Trump has made overhauling taxes a priority.Trump also wants to nix parts of Obamacare. If congress acts fast, we could see significant revisions to taxes and the Affordable Care Act as early as 2017. Some filing due dates have changed. Employers are required to file W-2s with the federal government by Jan.31. This earlier deadline matches the date for sending copies of the forms to employees. The Jan. 31 due date also applies to 1099s reporting nonemployee compensation. Returns of partnerships are due 2 1/2 months after year-end... March 15 for calendar year firms. Those needing more time can request a six-month extension. The due date for most regular corporations is 3 1/2 months after yearend... April 15 for calendar year firms. Corporations can request a five-month extension. The filling date for owners of foreign accounts is moved up to April 15. Also, taxpayers for the first time are able to request an additional six months to file. The 2017 standard mileage rate for business driving falls to 53 1/2 cents a mile. $510,000 of assets can be expensed in 2017, and this figure phrases out dollar for dollar once over $ 2,030,000 of assets are put into service during the year. Small start-ups can opt to claim $250,000 of R&D cost to offset payroll taxes. Businesses that hire the long-term unemployed get a tax credit. Tighter rules apply to preparers of returns that claim the child credit... And the American Opportunity Tax Credit. Preparers have to 42 January 2017 i LIC COURIER i www.qns.com document how they figured a filer’s claim was valid. The 2017 standard deductions go up a bit. High-incomers itemized deductions starting at a higher level in 2017. Personal exemptions stay at $4,050 for filers and their dependents in 2017. The 20% top rate on dividends and long-term gains starts at a higher amount for 2017. AMT exemption go up for 2017. The Social Security wage base increases in 2017 to $127,200. Social Security recipients will see a tiny 0.3% hike in their benefits in 2017. For most, the 2017 monthly Medicare Part B premiums average $109. However, the basic premium increases to $134 a month for some people. Upper income seniors also pay more for Parts B and D coverage in 2017. The income levels to qualify for the health premium credit in 2017 go up. The annual cap on deductible contributions to HSAs rises to $3,400 in 2017. The limits on deducting longterm care premiums are higher in 2017. The threshold for deducting medical expenses on Schedule A jumps to 10% of AGI for taxpayers who are 65 or older. The adoption credit can be taken on up to $13,570 of cost. The estate and gift tax exemption for 2017 rises to $5,409,000. U.S. taxpayers working abroad have a larger income exclusion...$102,100. The 401(k) contribution limit remains $18,000, but folks born before 1968 can put in $6,000 more. However, the paying limit for defined contribution plans goes up to $54,000. The 2017 limits for IRAs and Roth IRAs also stay steady at $5,500, plus $1,000 as an additional catch-up contribution for taxpayers age 50 and up. Among the batch of business and individual tax breaks that expire on Jan. 1: The exclusion of up to $2 million of forgiven debt on primary residences. Credit for installing energy-efficient windows and exterior doors in one’s home. Credits for biodiesel and other alternative fuels. Plus accelerated expensing write-offs for some Broadway and film production costs. Please contact us if you have any further questions. Sincerely, John Savignano, CPA Advertorial John Savignano
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