The IRS today released an advance version of Rev. Proc. 2016-55 that provides the annual inflation adjustments for more than 50 tax provisions, including the tax rate schedules and other tax amounts as adjusted for inflation for 2017.
Rev. Proc. 2016-55 [PDF 101 KB] provides details about these annual adjustments. The tax year 2017 adjustments generally are used on tax returns filed in 2018.
As briefly explained in a related IRS release—IR 2016-139 (October 25, 2016)—the following items reflect the inflation adjustments for 2017:
|Taxpayers||2017 amount||Compared to 2016 amount|
|Married filing jointly||$12,700||Up from $12,600|
|Single / married filing separately||$6,350||Up from $6,300|
|Heads of households||$9,350||Up from $9,300|
Personal exemption: No change for 2017—$4,050
Personal exemption phase-out:
39.6% income tax rate: For tax year 2017, the 39.6% tax rate applies for:
Itemized deduction limits
Foreign earned income exclusion
For tax year 2017, the foreign earned income exclusion is $102,100 (up from $101,300 for tax year 2016)
Earned income credit (EIC)
The tax year 2017 maximum EIC amount is $6,318 for taxpayers filing jointly who have three or more qualifying children (up from a total of $6,269 for tax year 2016).
For tax year 2017:
The annual deductible amounts for Medical Savings Accounts (MSAs) for 2017 increase as shown in the table below (with changes from 2016 noted):
|Medical Savings Accounts (MSAs)||Self-only coverage||Family coverage|
|Minimum annual deductible||$2,250 (unchanged)||$4,500 (up $50)|
|Maximum annual deduction||$3,350||$6,750 (up $50)|
|Maximum annual out-of-pocket expenses||$4,500 (up $50)||$8,250 (up $100)|
Estate and gift tax amounts
Inflation adjustments for 2017—items of interest to exempt organizations
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