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2016 to 2017 Inflation Adjustments

CPA, Consulting, Payroll, Bookkeeping, Internal Controls, Houston, TX, The Woodlands, TX

Throughout the fourth quarter of 2016, the IRS announced a variety of inflation-adjusted tax amounts for use in 2017. Some amounts have increased from 2016 to 2017, others have remained the same due to rounding rules in calculating inflation.

Here is a sampling of the over 100 adjustments that were made:

2017 2016
Standard Deduction (Single Filer) $6,350 $6,300
Personal Exemption $4,050 $4,050
Start of Top 39.6% Tax Bracket (Joint Filers) $470,700 $466,950
Gift Tax Annual Exclusion $14,000 $14,000
Estate/Gift Tax Unified Exclusion $5.49 million $5.45 million
Section 179 Expensing Cap $510K $500K
Section 179 Phase-Out $2.03 million $2.01 million
Per Diem Travel Allowance (High Cost Areas) $282 $275
Social Security Wage Base: $127,200 $118,500