tax-2017-240px-613100848The dollar amounts allowed for various federal tax benefits are subject to change every year based on legislation and inflation adjustments. Here are some important tax figures for 2017, compared with 2016, including Social Security wage base, qualified retirement plan and IRA contribution limits, the estate tax exemption, driving deductions, and allowable business write-off amounts and more.

The following table provides some important federal tax information for 2017, as compared with 2016. Many of the dollar amounts are unchanged or have changed only slightly due to low inflation. Other amounts are changing due to legislation.

Social Security / Medicare

2017

2016
Social Security Tax Wage Base $127,200 $118,500
Medicare Tax Wage Base No limit No limit
Employee portion of Social Security 6.2% 6.2%

Individual Retirement Accounts

2017

2016
Roth IRA Individual, up to 100% of earned income $5,500 $5,500
Traditional IRA Individual, up to 100% of earned Income $5,500 $ 5,500
Roth and traditional IRA additional annual “catch-up” contributions for account owners age 50 and older $1,000 $ 1,000

Qualified Plan Limits

2017

2016
Defined Contribution Plan limit on additions on Sections 415(c)(1)(A) $54,000 $ 53,000
Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)) $215,000 $210,000
Maximum compensation used to determine contributions $270,000 $265,000
401(k), SARSEP, 403(b) Deferrals (Section 402(g)), & 457 deferrals (Section 457(b)(2)) $ 18,000 $ 18,000
401(k), 403(b), 457 & SARSEP additional “catch-up” contributions for employees age 50 and older $ 6,000 $ 6,000
SIMPLE deferrals (Section 408(p)(2)(A)) $ 12,500 $ 12,500
SIMPLE additional “catch-up” contributions for employees age 50 and older $ 3,000 $ 3,000
Compensation defining highly compensated employee (Section 414(q)(1)(B)) $120,000 $120,000
Compensation defining key employee (officer) $175,000 $170,000
Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)) $600 $600

Driving Deductions

2017

2016
Business mileage, per mile 53.5 cents 54 cents
Charitable mileage, per mile 14 cents 14 cents
Medical and moving, per mile 17 cents 19 cents

Business Equipment

2017

2016
Maximum Section 179 deduction $510,000 $500,000
Phase out for Section 179 $2.03 million $2.01 million

Transportation Fringe Benefit Exclusion

2017

2016
Monthly commuter highway vehicle and transit pass $255 $255
Monthly qualified parking $255 $255

Standard Deduction

2017

2016
Married filing jointly $12,700 $12,600
Single (and married filing separately) $6,350 $6,300
Heads of Household $9,350 $9,300

Personal Exemption

2017

2016
Amount $4,050 $4,050

Personal Exemption Phaseout

2017

2016
Married filing jointly and surviving spouses Begins at $313,800 Begins at $311,300
Heads of Household Begins at $287,650 Begins at $285,350
Unmarried individuals Begins at $261,500 Begins at $259,400
Married filing separately Begins at $156,900 Begins at $155,650

Domestic Employees

2017

2016
Threshold when a domestic employer must withhold and pay FICA for babysitters, house cleaners, etc. $ 2,000 $ 2,000

Kiddie Tax

2017

2016
Net unearned income not subject to the “Kiddie Tax” $ 2,100 $ 2,100

Estate Tax

2017

2016
Federal estate tax exemption $5.49 million $5.45 million
Maximum estate tax rate 40% 40%

Annual Gift Exclusion

2017

2016
Amount you can give each recipient $14,000 $14,000