Federal Tax Law Changes – Tax Year 2017 Pub 4012 – Tab NEW Pub 4491 – Pages iii – viii 1

CORE: COlorado REsource New Provisions – Scope CORE: COlorado REsource Donation of vehicle, boat, plane – If value $500 or less Conversion of traditional IRA to Roth Allows use of Form 8606 Part II 2 CO1 – IW 2017 2

CO1 - IW 2017 Scope Manual On OneSupport Help Center

Federal Tax Law Changes 2017 New provisions Expiring provisions Indexing Due Dates 4 CO1 – IW 2017

New Provisions – Sch A Medical Expenses now subject to 10% floor for all taxpayers 5 CO1 – IW 2017

Expiring Provisions 6

Extended Provisions – Expired December 31, 2016 COD exclusion for principal residence Premiums for mortgage insurance deductible as interest for qualified residence Nonbusiness energy property credit Adjustment for qualified tuition and fees In the past few years, these provisions have been extended every time they were scheduled to expire. They have NOT been extended as of August 14, 2017. 7 CO1 – IW 2017 7

Indexing 8

Indexing – Standard Deduction Std Ded + if blind + if ≥65 Single $ 6,350 $ 1,550 MFJ 12,700 1,250 ea MFS 6,350 1,250* HH 9,350 1,550 QW 1,250 *also applies to spouse if exemption claimed 9 CO1 – IW 2017

Indexing – Exemption Deduction Exemptions remain $4,050 10 CO1 –IW 2017

Indexing – Standard Mileage 2017 Rates: 53.5¢ per mile – business miles 17¢ per mile – medical miles 14¢ per mile – charitable miles 11 CO1 – IW 2017 11

Indexing – EIC Maximum Credits and Income $6,318 – three or more qualifying children $5,616 – two qualifying children $3,400 – one qualifying child $510 – no qualifying child $48,340 ($53,930 MFJ) 3 qualifying children $45,007 ($50,597 MFJ) 2 qualifying children $39,617 ($45,207 MFJ) 1 qualifying child $15,010 ($20,600 MFJ) no qualifying child Maximum Investment Income: $3,450 Max Credit Max Income 12 CO1 – IW 2017 12

Indexing – Deductible Long-Term Care Premium Limits Qualified long-term care premiums includible as medical expense on Sch A $ 410 – Age 40 or under $ 770 – Age 41 to 50 $1,530 – Age 51 to 60 $4,090 – Age 61 to 70 $5,110 – Age 71 and over 13 CO1 – IW 2017

Other Indexing HSA Limits Retirement savings credit income limits $3,400 self-only coverage $6,750 family coverage Both + $1,000 if age 55 or older Retirement savings credit income limits MFJ: $62,000 HoH: $46,500 Other: $31,000 14 CO1 – IW 2017

Other Indexing Education credits income limits Excludible savings bond interest – out of scope Foreign earned income/housing exclusion – out of scope 15 CO1 – IW 2017

Other Indexing or Changes ACA Federal poverty lines Applicable percentages (taxpayer contribution, affordability) 16 CO1 – IW 2017

Due Dates 2017 federal tax returns are due Tuesday, April 17, 2018 2018 estimated payments are due April 17, 2018 June 15, 2018 September 17, 2018 January 15, 2019 In 2018, April 15 falls on a Sunday but the District of Columbia celebrates Emancipation Day on April 16. Since the term “federal holiday” includes any legal holiday observed in the District of Columbia, all taxpayers will now automatically get their due date extended to Tuesday, April 17. 17 CO1 – IW 2017 17

Tax Law Changes 2017 Comments… Questions? 18 CO1 – IW 2017 18