Recently, the Internal Revenue Service (IRS) revealed the most recent information available about tax rates for the year 2017. The latest information contains IRS tax rate schedules and deduction amounts for people from a range of backgrounds. Crucially, it outlines the adjustments that have been made to manage annual inflation for a range of provisions during the year of 2017. These include rates for tax rate, tax rate tables, and adjustments to the cost-of-living levels for certain items.
Crucially, the IRS tax rate schedules outlined here are intended to be used for the year 2017, starting from the first of January 2017. That means that they are not the tax rates that should be used to prepare tax returns for business conducted during 2016. Instead, these numbers are intended to help you prepare your tax returns for business conducted throughout 2017 to be submitted in 2018.
Understanding the IRS Tax Rate Schedules:
If you find that the income you received the year previously is likely to be the same as the income that you receive this year, then you can always use the changing IRS tax rate schedules right now to help you determine how much you might need to pay during the year of 2017. However, if you think that you may be exposed to some significant changes this year, such as marriage, making more money, or starting a family, then you might need to adjust your estimated tax payments considerably.
Of the various changes that have been made to the IRS tax rate schedules, perhaps some of the most important information to know is what the standard deduction will be for married couples filing separately and individual taxpayers. In 2017, the amount will be $6,350, which is more than the amount that was allowed during 2016. For married couples that choose to file their taxes jointly, the standard deduction will also be increased from 2016, now at $12,700. For heads of household, the standard deduction is approximately $9,350 for 2017, which is yet again an enhancement on the 2016 deduction amount.
Additional Deduction Amounts:
It's important to note that some people can be allowed to claim additional deductions according to the regulations that have been set in place by the IRS. For example, in 2017, the additional amount of standard deduction that is permitted for the blind or aged is $1,250. However, this standard deduction amount can also be increased to $1,550 for individuals who are not married and are not considered to be the surviving spouse of a marriage.
For 2017, the standard deduction that has been put in place for taxpayers that are considered to be the dependent of another taxpayer will not be able to exceed either $1,050, or $350 plus the earned income of that dependent. What's more, the personal exemption amount that is permitted for 2017 is the same as 2016, which is $4,050.
It is possible to evaluate how the early predictions for these tax rates stack up on various websites online, and there are a number of adjustments and cost-of-living informational charts available for those in need of help in managing their budget.