Trump's Tax Plan

President elect  Trump discussed several changes to our taxes while he was campaigning. Below are some of the highlights: 1. Top individual rate of 33% 2. Top capital gains rate of 20% 3. Top corporate rate of 15% 4. Repeal of estate tax 5. Eliminate AMT 6. Increase standard deductions to $15,000 single and $30,000 joint 7. Eliminate personal exemptions 8. Cap itemized deductions at $100,000 single and $200,000 joint and 8. deduction for childcare and eldercare.

2017 Social Security Wage Base

The wage base subject to the 6.2% social security withholding payroll tax for employees has increased to $127,200 from the 2016 amount of $118,500.

Advance Payments of Obamacare Health Insurance

If you have received the health insurance subsidy, then you have to reconcile that amount with what you are eligible for using form 8962 based on your actual income for the year. The amount of your advance is shown on form 1095-A on a monthly basis and needs to be provided to your tax preparer.  You have to pay back any excess premium credit received or you may be due an additional credit. You will get a notice from the IRS if this calculation on form 8962 is not attached to your tax return.