New Tax Laws and Deductions for 2017

December 15, 2016

Each new year brings new tax laws and deductions, making tax time more complicated for millions of working Americans. But updates to tax laws and deductions don’t have to be complicated and stressful, and a skilled CPA can help you navigate your tax filings without headaches and worry. Here is a breakdown of relevant tax information for 2017 to help you navigate your taxes in the upcoming months, as well as some information about utilizing a qualified CPA.

Standard Deduction Changes for 2017

First and foremost, standard deductions for taxpayers have been adjusted to compensate for inflation. Single payers and married payers filing separately can now deduct $50 more than last year, totaling $6,350, rather than last year’s $6,300. Similarly, for married couples filing jointly, the deduction amount is up $100 from last year, and is now $12,700. The head of household deduction is also up $50 from last year, coming in at $9,350. In addition, the tax deduction for the aged or the blind will be $1,250 in 2017, with an additional $300 deduction if the individual is unmarried.

Additional Changes in 2017

In addition to deduction changes in 2017, there were several exemption changes made that are noteworthy. Families who have adopted a child in 2016 are eligible for an adoption credit of $13,570, and the maximum Hope Scholarship Credit for 2017 is $2,500. In addition, a deduction for Student Loan Interest can be taken, but maxes out at $2,500. In addition to these deductions, you may also be eligible for a deduction based on your transportation and parking expenses, up to $255.

Need Help?

Does this all still sound complicated? Taxes can be complicated and confusing, especially with laws and deductions changing every year. At Relate CPA, our team of experts are fully aware of any and all tax changes for 2017. We can help you navigate this sometimes confusing topic, and can help you get back all the money you deserve. While it is important to be aware of tax changes that may impact you, meeting with a qualified CPA to go over the ins and outs of your taxes is always a good idea and takes some of the stress off of your shoulders. It is especially important to meet with someone to go over your taxes if you make a substantial income (over $200k a year), you are self employed, you have sold or plan to sell real estate, or if you’ve set money aside in a trust for your children.

If you find taxes overwhelming, and struggle to keep up with the constant changes to tax deductions and tax laws, give us a call at Relate CPA today. We can help you navigate your taxes with ease this tax season, taking your personal finances into account. While it may be tempting to wait until April to begin preparing your taxes, it is wise to start now and plan ahead, give us a call today!