global Tax Tax Brackets Expected to Rise Next Year October 27, 2016 Your current inflation-adjusted tax bracket could change slightly for 2017, meaning a potentially less burdensome tax bill. According to new reports, inflation-adjusted tax brackets are expected to increase slightly for 2017. What does this mean for taxpayers? Well...the higher brackets are expected to reduce the tax burden for many. Here’s an overview of the changes. Some Highlights According to Bloomberg BNA, the basic standard deduction for heads of household, the additional deduction and the exemption amounts will likely remain $4,050. For personal phase out exemptions, they are expected to range from... $313,800 (increase from 2016- $311,300) for spouses filing jointly as well as surviving spouses; $287,650 for heads of household (up from $285,350); and $261,500 (increase from 2016’s amount--$259,400) for unmarried individuals Bloomberg BNA’s report predicts that... The top 39.6 % tax bracket will begin at $470,700 (up from $466,950) for married taxpayers filing joint returns, and at $418,400 (up from $415,050) for unmarried individuals. Projected Values (courtesy of Bloomberg BNA) Married filing jointly and surviving spousesIf Taxable Income Is: The Tax is: Not Over $18,650 10% of the taxable income Over $18,650 but not over $75,900 $1,865 plus 15% of excess over $18,650 Over $75,900 but not over $153,100 $10,452.50 plus 25% of excess over $75,900 Over $153,100 but not over $233,350 $29,752.50 plus 28% of excess over $153,100 Over $233,350 but not over $416,700 $52,222.50 plus 33% of excess over $233,350 Over $416,700 but not over $470,700 $112,728 plus 35% of excess over $416,700 Over $470,700 $131,628 plus 39.6% of excess over $470,700 Unmarried individuals (besides Surviving Spouses and Heads of Households)If Taxable Income Is: The Tax Is: Not Over $9,325 10% of the taxable income Over $9,325 but not over $37,950 $932.50 plus 15% of excess over $9,325 Over $37,950 but not over $91,900 $5,226.25 plus 25% of excess over $37,950 Over $91,900 but not over $191,650 $18,713.75 plus 28% of excess over $91,900 Over $191,650 but not over $416,700 $46,643.75 plus 33% of excess over $191,650 Over $416,700 but not over $418,400 $120,910.25 plus 35% of excess over $416,700 Over $418,400 $121,505.25 plus 39.6% of excess over $418,400 Standard DeductionFiling Status Standard Deduction Married Filing Jointly/Surviving Spouses $12,700 Heads of Household $9,350 All Other Taxpayers $6,350 Projected Alternative Minimum Tax ExemptionsFiling Status Exemption Amount Married Filing Jointly/Surviving Spouses $84,500 Unmarried Individuals (other than Surviving Spouses) $54,300 Married Individuals Filing Separate Returns $42,250 Estates and Trusts $24,100 Remember these are ONLY predictions. Stay tuned for updates on the actual 2017 income tax brackets and how they’ll potentially affect your tax responsibilities. Contact us for more information.
