Periodic adjustments to tax deductions are the focus of a recently published article on Americantaxservice.org. Tax expert and author Frank Ellis discusses the changes in place for the 2017 tax season due to legislative changes, inflation, and federal bank decisions. In 2016, over 50 new tax deductions, credits and rules were introduced.
Ellis lists the most relevant changes to the average taxpayer. These include a requirement to pay 39.6 percent tax for individuals who earn more than $415,015 and married couples who earn over $446,950. Also, the standard tax deduction the head of a household can claim has been raised slightly, although this didn’t change for individuals and married couples.
In addition, itemized deductions have been limited for taxpayers who earn more than a certain amount. The author also lists changes to the Alternative Minimum Tax exception. Caps to the monthly transport claim have been set. Ellis explains the changes to how medical savings are taxed and how they are deductible. A few details and amounts are discussed to clarify what this can mean for taxpayers. The article also highlights the income threshold for the Lifetime Learning Credit, and an increase in the exclusion that applies to the foreign-earned income exemption.
It may not seem that significant to the average taxpayer, but the author reveals that the updated rules could save one a substantial amount. He also says that TurboTax not only makes filing taxes easier, but it also finds tax deductions and credits automatically. With TurboTax Online, this capability is available for free and taxpayers can maximize their refund
To learn more about some of the new tax deductions and rules in 2017, go to http://americantaxservice.org/new-tax-deductions/
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
American Tax Service
Address: 945 East 8th Street Suite A, Traverse City, Michigan 49686