Time flies when you’re having fun; here we find ourselves in a new year, with new challenges ahead—and of course our taxes are due. So let’s bring you up to date on some tax changes that we know of. (Remember this year could bring other tax changes that we don’t know about at this time).
One big change is that 1099s have to be in to the IRS by January 31st of his year. In years past, they needed to be sent to the individual by January 31st, but into the IRS by February 28th. Not this year; they need to be sent to the IRS by January 31st.
The 25% tax bracket for single individuals is now $37,950 to $91,900. In 2016 it was $37,651 to $91,150.
The 25% tax bracket for couples filing jointly is now $75,900 to $153,100. In 2016 it was $75,301 to $151,900.
Maximum earnings subject to the Social Security tax (FICA) for 2017 will be $127,200. In 2016 it was $118,500.
Maximum contributions in IRA stayed the same from 2016 to 2017: Annual $5,500 contribution limit, but if you’re 50 or older, the catch up provision allows an additional $1,000.
Maximum contributions in Qualified Plans (401K, 403b and 457b) stayed the same from 2016 to 2017: $18,000 limit, but if you’re over age 50 the catch up provision allows an additional $6,000.
And remember: This year could bring other changes that we don't know about at this time. Stay tuned!