Key Federal Tax Figures for 2017
We are pleased to provide our annually updated Key Federal Tax Figures summary. We trust this will be a helpful reference tool.
There are several points of interest that emerge from a review of the 2017 figures. Here is a brief summary of items of note.
Big Jump in the OASDI (FICA) Compensation Base
After a number of years of modest increases in the OASDI compensation base, the base amount increased by 7.34%, or $8,700, from $118,500 to $127,200. This in contrast to 2016, when the OASDI compensation base remained unchanged from the prior year.
Continued Automobile Mileage Rate Volatility
The tax-free mileage rate for use of a vehicle for business decreased for a second straight year from 54 cents per mile to 53.5 cents per mile. (The mileage rate decreased from 57.5 cents per mile in 2015 to 54 cents per mile in 2016.) Employers who routinely reimburse employee use of personal vehicles for business or ministry use may decrease reimbursement to this rate. Similarly, the tax deductible mileage rate for moving and medical mileage continued its decrease from 19 cents per mile to 17 cents per mile, while the mileage rate for charitable mileage remained unchanged at 14 cents per mile.
Other Inflation Adjustments for 2017
Inflation adjustments affect many areas, but not everything. Examine the specific issues that affect your organization carefully. Some examples:
|In 2016 and|
Returns for 2016
|In 2017 and
Returns for 2017
|Foreign earned income exclusion||$101,300||$102,100|
|Maximum annual contribution to defined|
|Maximum salary deduction for 401(k)/403(b)||$18,000||$18,000|
|IRA contribution limit||$5,500||$5,500|
|IRA over 50 “catch-up” limit||$1,000||$1,000|
|Highly compensated employee limit||$120,000||$120,000|
Please contact us with any questions.