- For 2017, the standard deduction for a single individual is $6,350 and for a married couple is $12,700. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses.
- For 2017, the personal exemption is $4,050. Individuals will claim a personal deduction for themselves, their spouse, and their dependents.
- The?maximum earnings subject to?social security taxes is $127,200 for 2017, increasing to $128,700 in 2018.
- The?standard mileage rate?is $.535 per business mile?as of January 1, 2017, down from $.54 for 2016 and $.575 for 2015.
- The?maximum annual salary deferral?into a?401(k) plan?or a?403(b) plan?is $18,000 in 2015, 2016 and 2017, increasing to $18,500 in 2018.? And if you’ll be 50 or older by December 31st, you can contribute an extra $6,000 into your 401(k) or 403(b) account this year.
The?maximum annual contribution?to your?IRA?is?$5,500 for 2015 through 2018.? And if you turn 50 by December 31st, you can contribute an extra $1,000 that year.? You have until April 15, 2018 to make your 2017 IRA contributions.