When you start making your tax plan for 2017, there are some tax figures that were adjusted for inflation. One figure that has changed for 2017 is that there is more than a 7% increase to the maximum earnings that are subject to social security tax. Here are some more figures to consider for your 2017 tax plan.
* The maximum earnings subject to social security tax in 2017 is $127,200.
* The earnings limit for those under full retirement age increases to $16,920 for 2017.
* The maximum amount of wages employees can contribute to a 401(k) plan remains at $18,000, with an additional $6,000 if you are 50 or older.
* The 2017 maximum contribution for SIMPLE plans is $12,500 and and an additional $3,000 if you are 50 or older.
* The maximum individual retirement account (IRA) contribution you can make in 2017 remains unchanged at $5,500 if you are under age 50 and $6,500 if you are 50 or older.
* The maximum you can contribute to a health savings account in 2017 is $3,400 for individuals and $6,750 for families. The catch-up contribution if you're age 55 or older is $1,000.
* The "nanny tax" threshold remains $2,000 in 2017. If you pay household employees $2,000 or more during the year, you're generally responsible for payroll taxes.
* The "kiddie tax" threshold remains $2,100 for 2017. If you have a child under the age of 19 (under age 24 for full-time students) who has more than $2,100 of unearned income, such as dividends and interest income, the excess could be taxed at your highest tax rate.
At Summit CPA we are here to assist you with all of your tax and financial needs. Contact our office at 866-497-9761 to schedule an appointment with our advisors.