BLOOMBERG BNA RELEASES COMPREHENSIVE 2017 PROJECTED INFLATION-ADJUSTED TAX FIGURES

For a fifth year, Bloomberg BNA has released comprehensive, projected inflation-adjusted amounts for tax brackets, penalties, thresholds, limits, and deductions in the tax code using data from the Consumer Price Index, including the medical care component, released September 16. Bloomberg BNA has compiled and projected an extensive list of inflation adjustments, which the IRS publishes in an annual revenue procedure and notice later in the fall. The full report, containing over 320 inflation-adjusted amounts, is available at http://about.bna.com/2017PTR/.

The 2017 projected inflation adjustments, generally made using a derivative of the formula in §1(f)(3) of the Code, are designed to give tax preparers and advisers the opportunity to initiate tax preparation and planning as soon as possible.

Bloomberg BNA’s projections also take into account items that are adjusted for inflation for the first time in 2017, including the following: 

  • §5000A penalty amount for failing to maintain minimum essential health coverage
  • §7345 passport revocation threshold for seriously delinquent tax debts
  • §831(b) small insurance company alternative tax threshold    

Individual Income Tax Brackets  

Bloomberg BNA has projected the income tax rate tables for individuals. For 2017, the tables are:  

Married Filing Jointly and Surviving Spouses

 

If Taxable Income Is: The Tax Is:
Not Over $18,650 10% of the taxable income
Over $18,650 but not over $75,900 $1,865 plus 15% of excess over $18,650
Over $75,900 but not over $153,100 $10,452.50 plus 25% of excess over $75,900
Over $153,100 but not over $233,350 $29,752.50 plus 28% of excess over $153,100
Over $233,350 but not over $416,700 $52,222.50 plus 33% of excess over $233,350
Over $416,700 but not over $470,700 $112,728 plus 35% of excess over $416,700
Over $470,700 $131,628 plus 39.6% of excess over $470,700

 

Heads of Households

 

If Taxable Income Is: The Tax Is:
Not Over $13,350 10% of the taxable income
Over $13,350 but not over $50,800 $1,335 plus 15% of excess over $13,350
Over $50,800 but not over $131,200 $6,952.50 plus 25% of excess over $50,800
Over $131,200 but not over $212,500 $27,052.50 plus 28% of excess over $131,200
Over $212,500 but not over $416,700 $49,816.50 plus 33% of excess over $212,500
Over $416,700 but not over $444,550 $117,202.50 plus 35% of excess over $416,700
Over $444,550 $126,950 plus 39.6% of excess over $444,550

 

Unmarried Individuals (other than Surviving Spouses and Heads of Households)

 

If Taxable Income Is: The Tax Is:
Not Over $9,325 10% of the taxable income
Over $9,325 but not over $37,950 $932.50 plus 15% of excess over $9,325
Over $37,950 but not over $91,900 $5,226.25 plus 25% of excess over $37,950
Over $91,900 but not over $191,650 $18,713.75 plus 28% of excess over $91,900
Over $191,650 but not over $416,700 $46,643.75 plus 33% of excess over $191,650
Over $416,700 but not over $418,400 $120,910.25 plus 35% of excess over $416,700
Over $418,400 $121,505.25 plus 39.6% of excess over $418,400

 

Married Filing Separately

 

If Taxable Income Is: The Tax Is:
Not Over $9,325 10% of the taxable income
Over $9,325 but not over $37,950 $932.50 plus 15% of excess over $9,325
Over $37,950 but not over $76,550 $5,226.25 plus 25% of excess over $37,950
Over $76,550 but not over $116,675 $14,876.25 plus 28% of excess over $76,550
Over $116,675 but not over $208,350 $26,111.25 plus 33% of excess over $116,675
Over $208,350 but not over $235,350 $56,364 plus 35% of excess over $208,350
Over $235,350 $65,814 plus 39.6% of excess over $235,350

 

Estate and Gift Tax Exclusions  

Also included in the Bloomberg BNA projections are the estate and gift tax exclusions. For 2017, the estate tax exclusion is expected to be $5.49 million. The gift tax exclusion is expected to remain $14,000.   

Affordable Care Act Amounts

Additionally, Bloomberg BNA’s projections also take into account items that are adjusted for inflation that relate to the Affordable Care Act (Pub. L. No. 111-148), such as the §4980H employer responsibility excise tax. For 2017, the amounts used to calculate the employer responsibility excise tax are:

  • $2,260 for large employers not offering health coverage; or
  • $3,390 for large employers offering coverage with employees who qualify for premium tax credits or cost-sharing reductions

The full Bloomberg BNA projected inflation adjustments are available at http://about.bna.com/2017PTR/.