Now Accepting 2017 Income Tax Returns
The widely anticipated day has arrived: Tax Season 2017! The IRS began accepting income tax returns today. Remember, most returns will experience delays, especially those with Earned Income Credit and Child Tax Credit. Overall, taxpayers have until April 18th, 2017 to be considered filed on time and escape penalties and interests.
Earned Income Credit
The tax year 2017 maximum Earned Income Credit amount is $6,318 for taxpayers filing jointly who have 3 or more qualifying children, up from a total of $6,269 for tax year 2016. The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds and phase-outs.
For calendar year 2017, the dollar amount used to determine the penalty for not maintaining minimum essential health coverage is $695.
For tax year 2017, the adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit is $112,000, up from $111,000 for tax year 2016.
For tax year 2017, the foreign earned income exclusion is $102,100, up from $101,300 for tax year 2016.
Estates of decedents who die during 2017 have a basic exclusion amount of $5,490,000, up from a total of $5,450,000 for estates of decedents who died in 2016.
Several changes have occurred between 2015 and 2016 tax year. With a new president; new administration; and promised changes to the tax code, we can expect more changes to occur. Strategic tax planning with your tax professional is an excellent way to help you optimize your tax filing experience each year.