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    BLOOMBERG BNA 2017 PROJECTED U.S. TAX RATES

  • BLOOMBERG BNA 2017 PROJECTED U.S. TAX RATES

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    Introduction Many amounts in the Internal Revenue Code are adjusted for inflation annually. Using data from the Consumer Price Index, Bloomberg BNA has projected inflation-adjusted amounts for 2017. Code Section Index

    Item Page IRC 1 Tax Rate Tables 3-4 1(a)-(e) 2 Unearned Income of Minor Children Taxed as if Parent's Income ("Kiddie Tax") 4 1(g) 3 Adoption Credit 4 23 4 Hope Scholarship, American Opportunity, and Lifetime Learning Credits 4-5 25A 5 Retirement Savings Contributions Credit 5 25B 6 Earned Income Credit 5-6 32

    7 Premium Assistance Credit 6 36B 8 Rehabilitation Expenditures Treated as Separate New Building 6 42(e)

    9 Low-Income Housing Credit 6 42(h) 10 Small Employer Health Insurance Credit 6 45R

    11 Alternative Minimum Tax 7 55

    12 Alternative Minimum Tax Exemption for Child Subject to the "Kiddie Tax" 7 59(j)

    13 Certain Expenses of Elementary and Secondary School Teachers 7 62(a)(2)

    14Transportation Mainline Pipeline Construction Industry Optional Expense

    Substantiation Rules for Payments to Employees under Accountable Plans7-8 62(c)

    15 Standard Deduction 8 63

    16 Overall Limitation on Itemized Deductions 8 68(b) 17 Health Flexible Spending Arrangements 8 125(i)

    18 Qualified Transportation Fringe Benefit 9 132(f)

    19Income from United States Savings Bonds for Taxpayers Who Pay Qualified

    Higher Education Expenses9 135

    20 Adoption Assistance Programs 9 137 21 Private Activity Bonds Volume Cap 9 146(d) 22 Loan Limits on Agricultural Bonds 9 147(c)(2) 23 General Arbitrage Rebate Rules 9 148(f)

    24Safe Harbor Rules for Broker Commissions on Guaranteed Investment

    Contracts or Investments Purchased for a Yield Restricted Defeasance Escrow9-10 148

    25 Personal Exemption 10 151 26 Election to Expense Certain Depreciable Assets 10 179 27 Eligible Long-Term Care Premiums 10 213(d)(10) 28 Qualified Retirement Contributions 11 219

    29 Medical Savings Accounts 11 220 30 Interest on Education Loans 11 221 31 Roth IRAs 11-12 408A

    32 Single-Employer Defined Benefit Pension Plans 12 430

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    Item Page IRC 33 Treatment of Dues Paid to Agricultural or Horticultural Organizations 12 512(d)

    34Insubstantial Benefit Limitations for Contributions Associated with Charitable

    Fund-Raising Campaigns12 513(h)

    35 Tax on Insurance Companies Other Than Life Insurance Companies 12 831 36 Expatriation to Avoid Tax 12 877(a)

    37 Tax Responsibilities of Expatriation 12 877A

    38 Foreign Earned Income Exclusion 12-13 911

    39 Unified Credit Against Estate Tax 13 2010

    40 Valuation of Qualified Real Property in Decedent's Gross Estate 13 2032A

    41 Annual Exclusion for Gifts 13 2503; 2523

    42 Tax on Arrow Shafts 13 4161

    43 Passenger Air Transportation Excise Tax 13 4261

    44 Shared Responsibility for Employers Regarding Health Coverage 13-14 4980H

    45 Requirement to Maintain Minimum Essential Coverage 14 5000A

    46Reporting Exception for Certain Exempt Organizations with Nondeductible

    Lobbying Expenditures14 6033

    47 Notice of Large Gifts Received from Foreign Persons 14 6039F

    48 Persons Against Whom a Federal Tax Lien Is Not Valid 14 6323

    49 Property Exempt from Levy 14 6334

    50 Interest on a Certain Portion of the Estate Tax Payable in Installments 14 6601(j)

    51 Failure to File Tax Return 14 6651

    52 Failure to File Certain Information Returns, Registration Statements, Etc. 14-15 6652

    53Other Assessable Penalties with Respect to the Preparation of Tax Returns for

    Other Persons15 6695

    54 Failure to File Partnership Return 15 6698

    55 Failure to File S Corporation Return 16 6699

    56 Failure to File Correct Information Returns 16-17 6721

    57 Failure to Furnish Correct Payee Statements 17-18 6722

    58 Revocation or Denial of Passport 18 7345

    59 Attorney Fee Awards 18 7430

    60Periodic Payments Received Under Qualified Long-Term Care Insurance

    Contracts or Under Certain Life Insurance Contracts18 7702B(d)

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    2017 ADJUSTED ITEMS 1. Tax Rate Tables For tax years beginning in 2017, the tax rate tables under 1 are as follows: TABLE 1 Section 1(a) Married Individuals Filing Joint Returns 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 TABLE 2 Section 1(b) 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 TABLE 3 Section 1(c) 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

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    TABLE 4 Section 1(d) Married Individuals Filing Separate Returns

    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 TABLE 5 Section 1(e) Estates and Trusts

    If Taxable Income Is: The Tax Is:

    Not Over $2,550 15% of the taxable income

    Over $2,550 but not over $6,000 $382.50 plus 25% of excess over $2,550

    Over $6,000 but not over $9,150 $1,245 plus 28% of excess over $6,000

    Over $9,150 but not over $12,500 $2,127 plus 33% of excess over $9,150

    Over $12,500 $3,232.50 plus 39.6% of excess over $12,500 2. Unearned Income of Minor Children Taxed as if Parent's Income (Kiddie Tax) For tax years beginning in 2017, the amount in 1(g)(4)(A)(ii)(I), which is used to reduce the net unearned income reported on the child's return that is subject to the kiddie tax, is $1,050. This amount is the same as the $1,050 standard deduction amount provided in 63(c)(5)(A). The same $1,050 amount is used for purposes of 1(g)(7) (that is, to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the kiddie tax). For example, one of the requirements for the parental election is that a child's gross income is more than the amount referenced in 1(g)(4)(A)(ii)(I) but less than 10 times that amount; thus, a child's gross income for 2017 must be more than $1,050 but less than $10,500. 3. Adoption Credit For tax years beginning in 2017, under 23(a)(3) the credit allowed for an adoption of a child with special needs is $13,570. For tax years beginning in 2017, under 23(b)(1) the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $13,570.The available adoption credit begins to phase out under 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $203,540, and is completely phased out for taxpayers with modified adjusted gross income of $243,540 or more. 4. Hope Scholarship, American Opportunity, and Lifetime Learning Credits (1) For tax years beginning in 2017, the Hope Scholarship Credit under 25A(b)(1), as increased under 25A(i) (the American Opportunity Tax Credit), is an amount equal to 100% of qualified tuition and related expense