KEY Filing Requirement Changes and Contribution Limit Updates for 2017:
The list below describes changes to tax rules for 2017 that you will find important, so read and enjoy……
- Filing Deadline Changes for Partnership Returns – Partnership returns are now due 2 ½ months after year-end, which is March 15th, for calendar year firms. A six-month extension can be requested for those needing more time. If you were a client on 3/15/17, we have automatically filed an extension or prepared a tax return for filing on your behalf.
- Filing Deadline Changes for Regular Corporations – Regular corporation returns are now due 3 ½ months after year-end, which is April 15th, for calendar year firms. A five-month extension can be requested for those needing more time. The deadline for S corporations has not changed.
- Filing Deadline Changes for Owners of Foreign Accounts – Returns for owners of foreign accounts are now due April 15th, up from the prior deadline of June 30th. A six-month extension can be requested for those needing more time.
- 2017 Standard Mileage Rate – The standard mileage rate for business driving is 53 ½ cents per mile.
- 2017 Depreciation Limit – For 2017, $510,000 of business assets can be expensed. This amount phases out dollar for dollar once over $2,030,000 of assets are put into service during the year.
- 2017 Social Security Amounts to Note – The Social Security wage base is $127,200 in 2017. The amount needed to qualify for coverage is $1,300 per quarter or $5,200 for the year.
- 2017 HSA Contribution Limit – The limit on deductible HSA contributions in 2017 is $3,400 for self-only coverage & $6,750 for family coverage. Individuals born before 1963 can contribute an additional $1,000. Minimum policy deductibles stay the same at $1,300 for singles & $2,600 for families. Taxpayers age 50 & older can make catch-up contributions of $1,000.
- 2017 Retirement Plan Contribution Limits – The 401(k) contribution limit is $18,000. Taxpayers born before 1968 can contribute an additional $6,000. These amounts apply to 403(b) & 457 plans as well. The contribution limit for SIMPLE plans is $12,500 & taxpayers age 50 or older can contribute an additional $3,000. The limit for defined contribution plans is $54,000. Retirement plan contributions can be based on up to $270,000 of salary.
- 2017 Gift Tax Amount to Note – The gift tax exclusion amount is $14,000 per done.