Tax reform is upon us and Washington is hoping to have everything signed and wrapped by before January 1, 2018. There is a chance though that tax reform will fall apart and we will continue under the current law. With that said, in preparation of 2017 coming to an end and 2018 just around the corner, the IRS has begun to release various limitations and amounts that are tied to cost of living adjustments and can change year over year. The list below is not an all-inclusive list, but does contain majority of the common amounts for taxpayers.
| TAX QUICK REFERENCE | 2017 | 2018 | ||||
| Child Tax Credit | $1,000 | $1,000 | ||||
| Standard Mileage Rate Per Mile: | ||||||
| Business | 53.5 cents | 54.5 cents | ||||
| Charitable | 14.0 cents | 14.0 cents | ||||
| Medical & Moving | 17.0 cents | 18.0 cents | ||||
| Section 179 Depreciation Maximum | $510,000 | $520,000 | ||||
| (subject to phase out) | ||||||
| Bonus Depreciation | 50% | 40% | ||||
| Social Security Earnings Limit, | ||||||
| Before Benefits are Reduced: | ||||||
| Age 62 to 65 | $16,920 | $17,040 | ||||
| Year Individual Reaches Age 66 | $44,880 | $45,360 | ||||
| Age 66 or older | No Limit | No Limit | ||||
| FICA Taxable Wage Base | $127,200 | $128,400 | ||||
| Medicare Taxable Wage Base* | No Limit | No Limit | ||||
| IRA Contribution Limit (Traditional or Roth) | ||||||
| Under Age 50 | $5,500 | $5,500 | ||||
| Age 50 and Over | $6,500 | $6,500 | ||||
| Maximum 401(K) and 403(b) Deferral | ||||||
| Under Age 50 | $18,000 | $18,500 | ||||
| Age 50 and Over | $24,000 | $24,500 | ||||
| Health Savings Accounts (HSA) Contribution Limits | ||||||
| Individual | $3,400 | $3,450 | ||||
| Family | $6,750 | $6,900 | ||||
| Student Loan Interest Deduction | $2,500 | $2,500 | ||||
| (subject to phase out) | ||||||
| Annual Gift Tax Exclusion (per individual) | $14,000 | $15,000 | ||||
| * Additional .9% Medicare tax applies to incomes over $250,000 (MFJ) $125,000 (MFS) | ||||||
| This information is intended to be a quick reference guide provided by Fitzpatrick, Johnson & Associates CPAs. At the time of printing these numbers were the most current numbers provided by their respective agencies. At anytime, these amounts are subject to change. | ||||||
Fitzpatrick, Johnson & Associates CPAs, is a full service accounting firm providing tax, financial statement, and bookkeeping services based in McMinnville, OR, southwest of Portland, OR.