Phaseouts And Reductions: A Tax-Filing Reminder
As tax-filing season gets into full swing, there are many details to remember. One subject to keep in mind — especially if you’ve seen your income rise recently — is whether you’ll be able to reap the full value of tax breaks that you’ve claimed previously.
What could change? If your adjusted gross income (AGI) exceeds the applicable threshold, your personal exemptions will begin to be phased out and your itemized deductions reduced. For 2016, the thresholds are $259,400 (single), $285,350 (head of household), $311,300 (joint filer) and $155,650 (married filing separately). These are up from the 2015 thresholds, which were $258,250 (single), $284,050 (head of household), $309,900 (joint filer) and $154,950 (married filing separately).
The personal exemption phaseout reduces exemptions by 2% for each $2,500 (or portion thereof) by which a taxpayer’s AGI exceeds the applicable threshold (2% for each $1,250 for married taxpayers filing separately). Meanwhile, the itemized deduction limitation reduces otherwise allowable deductions by 3% of the amount by which a taxpayer’s AGI exceeds the applicable threshold (not to exceed 80% of otherwise allowable deductions). It doesn’t apply, however, to deductions for medical expenses, investment interest, or casualty, theft or wagering losses.
If your AGI is close to the threshold, AGI-reduction strategies (such as making retirement plan and Health Savings Account contributions) may allow you to stay under it. If that’s not possible, consider the reduced tax benefit of the affected deductions before implementing strategies to accelerate or defer deductible expenses. Please contact our firm for specific strategies tailored to your situation.
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In this Issue
|LearnQuest Announces Artist Line Up For The 12th Annual Music Conference|
by Anish Khanzode
The 12th annual LearnQuest music festival will be held on Friday-Sunday, April 14-16 at the Center of Fine Arts at Regis College, Weston, MA. As in the past, the festival will feature great maestros and rising stars of Hindustani and Carnatic classical music. [more]
Capturing the spirit of fun that is so central to the festival of Holi, Hindi Manch is creating a Haasya Kavi Sammelan on March 11. The poets have been practicing, the jokers joking, the comics comicing for what promises to be a fun filled evening in Burlington, MA. [more]
|Bollywood Star Jaaved Jaaferi - Special Guest At AIF Gala|
Jaaved Jaaferi from Bollywood will be in Boston on March 18th for the AIF gala at the Copley Marriott.
Two surprises wait that night. Register early @ http://aif.org/event/negala2017/ to watch the night come alive! [more]
|Hindu Temple Of New Hampshire Celebrates Maha Shivaratri |
The Hindu Temple of New Hampshire, Nashua, NH celebrated the annual Maha Shivaratri festival on February 24th. The sublime celebration that attracted an impressive crowd of devotees, commenced early in the evening and continued through the entire night till dawn. [more]
|Meet And Greet With Minister Dharmendra Pradhan|
Odisha Society of New England (OSNE) hosted a meet and greet reception for minister Shri Dharmendra Pradhan, the honorable Minister of Petroleum and Natural gas, Government of India, at the Radisson Hotel in Chelmsford, MA. Lokvani had the opportunity to meet with the minister and with the consul general. Check out our video interview. [more]
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