2017 tax rates, income brackets inflation adjustments

It’s that special tax time of year, when the Internal Revenue Service releases its annual inflation adjustments for more than 50 tax provisions.

For 2017, the total is 55 amounts changes, ranging from the widely used tax rate tables and income brackets and standard deduction and exemption amounts to the more arcane treatment of dues paid to agricultural or horticultural groups and the tax on arrow shafts.
As much fun as it would be to blog about the $162 exemption on agronomic assessments and 50 cent per shaft arrow tax, I’m going to stick with the more widely use adjustments, at least for the foreseeable future.
And the first item is the 2017 tax rates and income amounts that they cover.
2016 tax rates and income brackets: Thankfully, Congress didn’t fiddle with tax rates, so we have the same seven in 2017, starting at 10 percent and topping out at 39.6 percent.
But the income that falls into each rate for the five filing statuses has been bumped up a bit for inflation.
Here are those new amounts for the coming tax year:
2017 tax rates and income brackets

Tax Rate
Single
 Head of Household
Married Filing Jointly or Surviving Spouse
Married Filing Separately

10%
 Up to $9,325
  Up to $13,350
  Up to $18,650
  Up to $9,325

15%
$9,326 to $37,650
  $13,351 to $50,800
  $18,651 to $75,900
  $9,326 to $37,950

25%
$37,951 to $91,900
  $50,801 to $131,200
  $75,901 to $153,100
  $37,951 to $76,550

28%
$91,901 to $191,650
  $131,201 to $212,500
  $153,101 to $233,350
  $76,551 to $116,675

33%
$191,651 to $416,700
  $212,501 to $416,700
  $233,351 to $416,700
  $116,676 to $208,350

35%
$416,701 to $418,400
  $416,701 to $444,550
  $416,701 to $470,700
  $208,351 to $235,350

39.6%
$418,401 or more
  $444,551  or more
  $470,701  or more
  $235,351  or more

 
There’s one important thing to note about the information in the above table. It applies to the 2017 tax year that begins on Jan. 1, 2017. You’ll use these numbers when you file your 2017 taxes in 2018.
Do not – I repeat, do not – use the above table for filling your 2016 tax return, which you’ll do next year during what will be referred to by the IRS, me and all my colleagues who cover taxes, as the 2017 filing season.
Yeah, I know, the tax terminology is as, if not more, confusing as the tax lows and filing process.
2016 tax rates and income brackets: To file your 2016 return, which is due by April 17, 2017 (yep, another later deadline since April 15 next year falls on a Saturday), you’ll use the 2016 tax rates and income brackets, shown below:
2016 tax rates and income brackets

Tax Rate
Single
 Head of Household
Married Filing Jointly or Surviving Spouse
Married Filing Separately

10%
 Up to $9,275
  Up to $13,250
  Up to $18,550
  Up to $9,275

15%
$9,276 to $37,650
  $13,251 to $50,400
  $18,551 to $75,300
  $9,276 to $37,650

25%
$37,651 to $91,150
  $50,401 to $130,150
  $75,301 to $151,900
  $37,651 to $75,950

28%
$91,151 to $190,150
  $130,151 to $210,800
  $151,901 to $231,450
  $75,951 to $115,725

33%
$190,151 to $413,350
  $210,801 to $413,350
  $231,451 to $413,350
  $115,726 to $206,675

35%
$413,351 to $415,050
  $413,351 to $441,000
  $413,351 to $466,950
  $206,676 to $233,475

39.6%
$415,051 or more
  $441,001  or more
  $466,951  or more
  $233,476  or more

 
But we do need the 2017 tax year data so that, in addition to working on our 2016 returns, we can make tax moves and plans related to the 2017 tax year.
And if you’re interested in more tax year data, the ol’ blog’s special page lets you look back at tax rates and income brackets through the years.
Enjoy the tax rate tables. I’ll be back with more inflation adjusted tax changes for the 2017 tax year.
Here’s a preview of what you can expect:

Standard deduction amounts, personal exemptions, limitations on itemized deductions and exemptions
Alternative Minimum Tax exemption amounts and 2017 Social Security wage base
Credits and deductions, including adoption costs and assistance, Lifetime Learning Credit, Earned Income Tax Credit, educators’ expenses, interest on education loans and transportation fringe benefits
Estate and gift tax limits, unified credit against estate tax and kiddie tax
Medical related items, including contributions to a flexible spending account, health savings account, eligible long-term care premiums and the Affordable Care Act minimal essential coverage penalty
Expatriate issues
Penalties, including failure to file a return, failure to file certain information returns and tax preparer penalties
Retirement plan contribution limits (to be issued later by the IRS)
Standard mileage deduction amounts (to be issued later by the IRS)

As I get these additional inflation related items posted, I’ll put the links here so this post will serve as an index and directory for the 2017 amounts.

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2017 tax rates, income brackets inflation adjustments

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