New Tax Tables for 2017

New Tax Tables for 2017

For your reference, we've looked up the IRS Tax Brackets for 2017.

As you may know, the IRS adjusts several tax provisions for inflation to avoid and prevent the phenomenon referred to as "Bracket Creep."  Bracket Creep is when people are moved into higher income tax brackets or have reduced value from deductions or credits due to inflation, not any increase in real income.  The IRS figures the past year's inflation using CPI or Consumer Price Index, and makes adjustments to the income thresholds, deduction amounts or credit values.
 

 

PEP and Pease

Two provisions in the tax code that increase taxable income for high-income earners are referred to as PEP and Pease. PEP is the phaseout of the personal exemption and Pease (named after former Senator Donald Pease) phases out the value of most itemized deductions once a taxpayer’s adjusted gross income reaches a certain amount.

The income threshold for both PEP and Pease increases from last year for single filers and for married couples filing jointly refer to Tables 5 and 6.

 

There is more information to discuss on this topic including Alternative Minimum Tax and Earned Income Tax Credits as well.  We'll save those topics for another week.  

Are taxable tables confusing to you?  Do you need assistance determining your taxable income? FL-Accounting & Advisers is your Boutique Accounting Company! Contact us at the link below or call us at (561) 939-2553 for your free consultation.

Wendy Ettorre