January 2017 : 2017 Federal Income Tax Rates & Brackets, Etc., Selected IRS Publications, and Attorney “Tax Deduction” Letters

Michigan Family Law Journal : TAX TRENDS AND DEVELOPMENTS Feature

by Joseph W. Cunningham, JD, CPA

Excerpt:

In Rev. Proc. 2016-55 (IRB 2016-45), the IRS released the 2017 tax rates applicable to taxable income of taxpayers ling tax returns as single, married filing jointly, or head of household.

Standard Deduction

• Single … $6,350; $7,900 if 65 Years Old
• Married Filing Jointly … $12,700; $13,950 if One Spouse is 65, $15,200 if Both Are 65
• Head of Household … $9,350; $10,900 if 65

Personal Exemption

The personal exemption for 2017 is $4,050. However, 2% of the personal exemption is “phased out” – or reduced – for each $2,500, or part of $2,500, if a taxpayer’s adjusted gross income (AGI) exceeds the statutory threshold for subject filing status, as follows:

Long-Term Capital Gain Rates

• 0% for taxpayers in the 10% or 15% brackets.
• 15% for:
  • Single Filers with taxable income between $37,950 and $416,700
  • Married Filing Jointly with taxable income between $75,900 and $470,700
  • Head of Household with taxable income between $50,800 and $444,550
• 20% for taxpayers with taxable incomes exceeding the high end of the above ranges

Selected IRS Publications
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Complete Michigan Family Law Journal available at: Michigan Bar website – Family Law Section (subscription required)