Tax Rates for 2017

As we approach the conclusion of 2017, holiday season and taxes are probably the three most prevalent subjects on the minds of most people. Therefore, we believe providing you information concerning 2017 taxes may provide you a better picture concerning what to expect on your tax return.
Tax Rates
The tax rates for 2017 are as follows:
The personal exemption amount remains $4,050.
Standard Deductions
If you are among the majority of taxpayers, you will claim the standard deduction on your tax return. The standard deductions for 2017 and are as follows:
Single/Married filing separately: $6,350
Head of household: $9,350
Married filing jointly and qualifying widows/widowers: $12,700
Obamacare Penalty for No Health Insurance
For 2017, the Individual Shared Responsibility fee for not having insurance remains 2.5% of household adjusted gross income, or $695 per adult and $347.50 per child, to a maximum o $2,085.
Medicare and Social Security
The tax for Medicare and Social Security once again has remained unchanged (1.45% for Medicare and 6.2% for Social Security).
Retirement Plans
Contribution limits for 401(k), 403(b), most 457 plans, and the government’s Thrift Savings Plan remains $18,000. The catch-up contribution limit for employees age 50 or older also is still $6,000. SEP IRAs for those self-employed and solo 401(k)s are up $1,000 to $54,000 for 2017.
Tax Planning
The solution to minimize your annual tax liability is to tax plan. Those who are clients of our practice are welcome to receive complimentary tax planning advice through our EZ2 Thrive program.
Professional Tax & Financial Services is located at 25124 Springfield Ct., Ste. 260, in Valencia. For more information on taxes or EZ2 Thrive, please call 661-259-1967 or 1-800-998-4829. You may also visit us at www.scvprotaxservices.com.