Tax on long-term capital gains is increased from 15 to 20 percent for individuals with taxable income greater than $400,000 and joint filers with taxable income over $450,000.An additional tax bracket has been added for individuals with taxable income greater than $400,000 and joint filers with taxable income over $450,000.Tax increasesĢ017 continues with the following tax increases started in 2013: The above requirements for filing Form 8938 do not take the place of the obligation to file an FBAR (Foreign Bank Account Report, Treasury Form TD F 90-22.1) to report a financial interest in or signature authority over a foreign financial account. For joint filers, the limits are $400,000 at year-end, or $600,000 at any time during the year. Single filers need only report accounts exceeding $200,000 at year-end, or $300,000 at any point during the year. citizens living abroad, the reporting limits rise dramatically. For joint filers, the limits rise to $150,000 at any time, and $75,000 at year-end.įor U.S. Foreign holdings exceeding $75,000 at any time during the year must also be reported. residents, you have to file information about your foreign holdings if they exceed $50,000 at year-end, if you're a single filer. "Above that amount, check the IRS reporting limits, which may change from year to year in the future."įor U.S. "If your overseas assets don't exceed $50,000, you don't have to worry about the new rules," says Gonzalez. As of 2012 and beyond, all taxpayers who meet the minimum threshold, which varies by tax-filing and residence status, must comply. During the transitional tax year of 2011, only certain taxpayers had to make foreign disclosures to the IRS. One of the latest tax buzzwords is "offshore accounts," as the IRS has begun taking a closer look at the foreign holdings of American citizens. They don't come every year, but when they do, they translate into additional money in your pocket." New foreign financial disclosures The estate and gift tax exclusion rises to $5.49millionĪccording to Jeff Gonzalez, a CPA and the CFO of Los Angeles-based Electric Entertainment, "Inflation adjustments can be a big thing.Annual deductible amounts for Health Savings Accounts increases for individuals to $3,400 but with no change for families.The foreign earned income deduction rises to $102,100.The maximum income limit for the EITC rises to $53,930.The maximum earned income tax credit rises to $6,318.The standard deduction rises to $6,350 for single, $9,350 for head of household, and $12,700 for married filing jointly.Personal and dependent exemptions remain $4,050.With rising deductions and exemptions, you get to protect more of your money from becoming taxable income.įor tax year 2017, the IRS increased the value of some different tax benefits, while leaving some the same as last year: To ensure that American taxpayers keep pace with the rising costs of inflation, the IRS periodically adjusts the value of certain deductions and exemptions. Inflation increases the cost of goods and services for consumers. When you use TurboTax, you’ll always be up-to-date with the latest tax laws.) Inflation adjustments The Internal Revenue Service has released information on a number of tax changes for the 2017 tax year. These can range from minor adjustments to the complete elimination of various tax provisions. However, you should be on the lookout for the various tax changes that inevitably occur from year to year. In reality, taxes can be relatively straightforward for many individuals. Tax Code, the fact is that much of it doesn't apply to the average taxpayer. While much is written about the length and complexity of the U.S.
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