The IRS has announced the next year's income tax rates, including benefit amounts. To give context to these and because the value of US currency is relative, it’s we've provided a metric for how these changes stack up against the rate of inflation. The US has seen a 1.5% inflation rate in the 12 months since September 2015.
Have a look at a clear layout of the changing standard deductions for the most common filing statuses:
- Married Filing Jointly has increased from $12,600 to $12,700, a $100 or 0.79%.
- Single or Married Filing Separately increased from $6,300 to $6,350, a $50 or 0.79%.
- Head of Household increased from 9,300 to 9,350, a $50 or 0.54%.
For those in a higher income bracket, the 39.6% tax rate affects single payers whose income exceeds 418,400, up from 415,050. A $3,350, or 0.81% increase.
The other marginal rates, which apply to all income earners exceeding the standard deduction, are included in the 2017 Tax Revenue Procedure.
As of 2017, employees and employers should also be aware that the ACA (Affordable Care Act, also known as "Obamacare") will use an unchanged dollar amount of $695 per adult for the penalty. In ongoing years, this dollar amount will be adjusted for inflation. For expert, clear, and thorough information on the ACA and healthcare insurance, employers and individuals can contact Adrian Donovan at Bernardini and Donovan Insurance Services Inc.
For professional assistance with employees, payroll, W-2s, and everything business services, contact Cloud Payroll.