For 2017, the standard deduction for a single individual is $6,350 and for a married couple is $12,700. A person will benefit by itemizing once allowable deductions exceed the applicable standard deduction. Itemized deductions include state and local income taxes (or sales taxes), real estate taxes, mortgage interest, charitable contributions, and unreimbursed employee business expenses. The Standard Deduction jumps to $12k for single individuals and $24k for married couples in 2018.
For 2017, the personal exemption is $4,050. Individuals will claim a personal deduction for themselves, their spouse, and their dependents. Personal Exemptions are eliminated starting in 2018.
The maximum earnings subject tosocial security taxes is $128,700 for 2018, up from $127,200 in 2017.
The standard mileage rateis $.535 per business mile as of January 1, 2017, down from $.54 for 2016 and $.575 for 2015.
The maximum annual salary deferral into a 401(k) plan or a 403(b) plan is $18,500 in 2018, up from $18,000 in 2015, 2016 and 2017. And if you’ll be 50 or older by December 31st, you can contribute an extra $6,000 into your 401(k) or 403(b) account this year.
The maximum annual contribution to your IRA is $5,500 for 2015 through 2018. And if you turn 50 by December 31st, you can contribute an extra $1,000 that year. You have until April 15, 2018 to make your 2017 IRA contributions.