Tax reform is upon us and Washington is hoping to have everything signed and wrapped by before January 1, 2018. There is a chance though that tax reform will fall apart and we will continue under the current law. With that said, in preparation of 2017 coming to an end and 2018 just around the corner, the IRS has begun to release various limitations and amounts that are tied to cost of living adjustments and can change year over year. The list below is not an all-inclusive list, but does contain majority of the common amounts for taxpayers.

Child Tax Credit $1,000 $1,000
Standard Mileage Rate Per Mile:
Business 53.5 cents 54.5 cents
Charitable 14.0 cents 14.0 cents
Medical & Moving 17.0 cents 18.0 cents
Section 179 Depreciation Maximum $510,000 $520,000
(subject to phase out)
Bonus Depreciation 50% 40%
Social Security Earnings Limit,
Before Benefits are Reduced:
Age 62 to 65 $16,920 $17,040
Year Individual Reaches Age 66 $44,880 $45,360
Age 66 or older No Limit No Limit
FICA Taxable Wage Base $127,200 $128,400
Medicare Taxable Wage Base* No Limit No Limit
IRA Contribution Limit (Traditional or Roth)
Under Age 50 $5,500 $5,500
Age 50 and Over $6,500 $6,500
Maximum 401(K) and 403(b) Deferral
Under Age 50 $18,000 $18,500
Age 50 and Over $24,000 $24,500
Health Savings Accounts (HSA) Contribution Limits
Individual $3,400 $3,450
Family $6,750 $6,900
Student Loan Interest Deduction $2,500 $2,500
(subject to phase out)
Annual Gift Tax Exclusion (per individual) $14,000 $15,000
* Additional .9% Medicare tax applies to incomes over $250,000 (MFJ) $125,000 (MFS)
This information is intended to be a quick reference guide provided by Fitzpatrick, Johnson & Associates CPAs.  At the time of printing these numbers were the most current numbers provided by their respective agencies. At anytime, these amounts are subject to change.

Fitzpatrick, Johnson & Associates CPAs, is a full service accounting firm providing tax, financial statement, and bookkeeping services based in McMinnville, OR, southwest of Portland, OR.

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