![]() For 2017, the credit allowed for an adoption of a child with special needs is $13,570, and the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $13,570. Keep in mind that this is the value of the expenses used to determine the credit and not the actual amount of the credit. For 2017, the value used to determine the amount of credit that may be refundable is $3,000 (the credit amount has not changed). The revenue procedure has a table providing maximum credit amounts for other categories, income thresholds, and phase-outs. For 2017, the maximum EITC amount available is $6,318 for taxpayers filing jointly who have 3 or more qualifying children. Some tax credits are also adjusted for 2017. All unearned income in excess of $2,100 is taxed at the parent’s tax rate. For 2017, the threshold for the kiddie tax - meaning the amount of unearned net income that a child can take home without paying any federal income tax - is $1,050. ![]() The kiddie tax applies to unearned income for children under the age of 19 and college students under the age of 24. The AMT exemption amounts are as follows: In years past, the AMT was subject to a last-minute scramble by Congress to “patch” the exemption but as part of the American Taxpayer Relief Act of 2012 (ATRA), the AMT exemption amounts are permanently adjusted for inflation - that's why you now see it in this list. It phases out completely at $384,000 ($436,300 for married couples filing jointly). However, the exemption is subject to a phase-out that begins with adjusted gross incomes of $261,500 ($313,800 for married couples filing jointly). The personal exemption amount for 2017 is $4,050, the same as 2016. Taxpayers over the age of 65 could use the 7.5% floor through 2016: in 2017, the favored tax rate disappears and all taxpayers are subject to the 10% floor. ![]() Keep in mind that the floor for medical expenses in 2017 is 10% of adjusted gross income (AGI) for all taxpayers. (You can read more about the Pease limitations and how they affect affluent taxpayers here.) They do not apply to medical expenses, investment expenses, gambling losses, and certain theft and casualty losses. Pease limitations apply to charitable donations, the home mortgage interest deduction, state and local tax deductions and miscellaneous itemized deductions.
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