About Us Contact Us Help


Archives

Contribute

 

Phaseouts And Reductions: A Tax-Filing Reminder

Neil Mukherjee
03/09/2017

As tax-filing season gets into full swing, there are many details to remember. One subject to keep in mind ó especially if youíve seen your income rise recently ó is whether youíll be able to reap the full value of tax breaks that youíve 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 taxpayerís 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 taxpayerís AGI exceeds the applicable threshold (not to exceed 80% of otherwise allowable deductions). It doesnít 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 thatís 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.



Bookmark and Share | Share your Comments

Comments :
Post a new message

In this Issue
Mahashivaratri Celebrations At Vijaya Durga Temple In Burlington


The Vijaya Durga Kali Temple held a grand Mahashivatri celebration including a beautiful enactment of the wedding of Lord Shiva and Ma Durga. The wedding lasted upto 3:00 am with a cultural event following the wedding.
[more]

Mahashivaratri Celebrations At Vijaya Durga Temple In Burlington
SABA GB Strongly Opposes The Trump Administrationís Revised Executive Order


The South Asian Bar Association of Greater Boston (SABA GB) strongly condemns the Trump Administration's newest Executive Order. This Order, signed on March 6, 2017, is yet another discriminatory action by this Administration and circumvents the ideals of the United States Constitution and this great nation.
[more]

SABA GB Strongly Opposes The Trump Administrationís Revised Executive Order
Akshaya Patra Annual Boston Gala


Chef Sanjeev Kapoor will be the event's keynote speaker. HGTV and Food Network interior designer Taniya Nayak will serve as the Master of Ceremonies. American Idol finalist Sonika Vaid will entertain at the Akshaya Patra Foundation's 2017 Boston Benefit Gala on Friday, April 28th at the Cambridge Marriott Boston.
[more]

Akshaya Patra Annual Boston Gala
Academy Of Creative Arts Is Delighted To Announce Its First Short Film Festival


by Sonal Yadav
Academy of Creative Arts is delighted to announce its first short film festival in an effort to encourage local film making and film makers. Apart from screening of the two short films - "Epiphany" & "The Company you Keep" meet with cast/crew and discuss possibility to get involved in future projects. The event will be held on March 12th.
[more]

Academy Of Creative Arts  Is Delighted To Announce Its First Short Film Festival
HPHC: Asian Indian Survey


To help serve you better and develop programs to meet your needs, Harvard Pilgrim Health Care is conducting a survey about its insurance program for visitors from India, Eastern Harmony and many of its other services. There is a prize drawing of 1 prize of $500, 2 prizes of $250, and 10 prizes of $50.
[more]

HPHC: Asian Indian Survey

You may also access this article through our web-site http://www.lokvani.com/




Home | About Us | Contact Us | Copyrights Help