Tax changes for 2017

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Let’s look at some of the tax changes for 2017. The changes will affect many taxpayers, some changes will make you happy and others you will not like. At first, there was talk of going from seven tax categories to five. In my opinion, the new tax brackets are better than the old ones. Our tax brackets for 2017 start with 10%, the income range is the same as in 2016 for all tax states. The 15% tax bracket was replaced by the 12% tax bracket; the income range is the same as in 2016 for the 15% tranche. Our next and last group included in this article is 22% less than 25% in 2016. The difference starts at MFS (Married filing separately) income ranges from $ 38,701 to $ 82,500 which is different from 2016 which was up to $ 78,075.

The standard deduction increased for the next tax season. I’d be happy, except the exemption credit was phased out due to the increase in the standard deduction. This is where families will see the difference in their repayments. In previous years, the exemption credit increased by $ 50 each year. In 2016, the exemption credit was $ 4,050 per person on your return. Example: A family with a husband, wife, and four children would receive an exemption credit of $ 24,300 plus a standard deduction of $ 9,350.

The new standard deduction for HOH will be $ 18,000 compared to $ 9,350, almost a doubling increase. You will lose the exemption credit of $ 4,050.

The child and dependent credit increased to $ 2,000 per child under 17, taxpayers will not receive the full $ 2,000 as a refund. The portion of the reimbursement will be up to $ 1,400 per qualifying child and a non-refundable dependent credit of $ 500 per non-qualifying child.

Deductions for moving expenses will not be allowed on tax returns for tax year 2017. Alimony is no longer deductible by the person who pays the alimony or included in the income of the person who receives it after December 31, 2018. That sounds great to the person receiving alimony, not so good if they have to pay it. Casualty losses are no longer allowed unless it is a presidentially declared disaster. Miscellaneous deductions have been eliminated, which means union dues, tax preparer fees, uniforms, etc. it will not be allowed to move on.

There are many changes for the 2017 tax season. Be prepared to bring more information if you are claiming head of household filing status this year.

Note: There may be some changes before the 2017 tax filing season begins.

Have a great year and enjoy tax season!

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