The IRS announced tax adjustments for inflation for the 2017 tax year last week. This year marks the fourth year in a row of straightforward tax changes primarily made up of minor adjustments due to indexing for inflation. Income tax brackets were adjusted slightly upwards.
The personal exemption did not change, remaining at $4,050 for 2017. The standard deduction amounts were increased by $100 for married filing joint filers for 2017. The AMT exemption amount was increased from $83,800 to $84,500 for married filing joint filers in 2017. The estate tax exemption grew by $40,000 per person to $5,490,000.
For more details, view Revenue Procedure 2016-55.
The 2017 tax updates to your financial planning software will include updated income tax calculations, estate tax calculations and Social Security estimates.