Paying Taxes 2017: What You Need to Know (Overview)

Paying Taxes 2017 – The year 2017 was a transitional one for the U.S. tax system, as the Tax Cuts and Jobs Act (TCJA) was enacted in late December, bringing major changes to the tax code for 2018 and beyond.

However, the TCJA did not affect the tax rules for 2017, which means that taxpayers had to follow the old tax code when filing their 2017 tax returns. Here are some of the key points to remember when paying taxes for 2017:

The tax rates and brackets for 2017 were the same as they were in 2016, ranging from 10% to 39.6%. The income thresholds for each bracket were adjusted for inflation.
The standard deduction for 2017 was $6,350 for single filers, $12,700 for married couples filing jointly, and $9,350 for heads of households. The personal exemption was $4,050 per person, subject to phase-out for high-income taxpayers.
Taxpayers who itemized their deductions could deduct various expenses, such as mortgage interest, state and local taxes (SALT), medical expenses, charitable contributions, and miscellaneous deductions. Some of these deductions had limitations or thresholds based on income or other factors.
Taxpayers who had children or other dependents could claim various credits, such as the child tax credit, the earned income tax credit, the child and dependent care credit, and the education credits. Some of these credits were refundable, meaning that they could reduce the tax liability below zero and result in a refund.
Taxpayers who had health insurance coverage for the entire year could check a box on their tax return to indicate that they met the requirement of the Affordable Care Act’s individual mandate. Those who did not have coverage or had a gap in coverage had to either claim an exemption or pay a penalty.
Taxpayers who had income from sources other than wages or salaries, such as interest, dividends, capital gains, business income, rental income, or retirement income, had to report and pay taxes on these types of income according to different rules and schedules. Some of these types of income were subject to preferential tax rates or special deductions.
Taxpayers who had foreign income or assets had to comply with additional reporting and tax obligations, such as filing Form 8938 or FinCEN Form 114. Failure to do so could result in severe penalties.

The deadline for filing 2017 tax returns was April 17, 2018. Taxpayers who could not file by this date could request an automatic six-month extension by filing Form 4868. However, this extension only applied to the filing deadline, not the payment deadline. Taxpayers who owed taxes had to pay them by April 17, 2018, or face interest and penalties.

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The IRS offers various resources and tools to help taxpayers file their 2017 tax returns, such as [the IRS website], [the Free File program], [the Volunteer Income Tax Assistance (VITA) program], and [the Tax Counseling for the Elderly (TCE) program]. Taxpayers can also seek professional help from qualified tax preparers or advisors.

Paying taxes for 2017 may seem complicated and confusing, especially with the changes brought by the TCJA for future years. However, by following the old tax code and using the available resources and tools, taxpayers can file their 2017 tax returns accurately and timely.

How to File Your 2017 Tax Return

To file your 2017 tax return, you have several options. You can:

Use the [IRS Free File program] to file your federal taxes online for free, if your adjusted gross income was $66,000 or less in 2017. You can also use this program to file your state taxes for free or at a reduced cost, depending on your state and income.
Use commercial tax software or an online service to file your federal and state taxes electronically. You may have to pay a fee for this option, depending on the product and your eligibility. You can find a list of [IRS-approved e-file providers] on the IRS website.
Hire a qualified tax professional to prepare and file your tax return for you. You can find a [tax preparer near you] using the IRS directory or the [National Association of Tax Professionals (NATP) website]. Make sure to check the credentials and reputation of the tax preparer before hiring them.
Fill out and mail in the paper forms to the IRS and your state tax agency. You can download the forms and instructions from the [IRS website] or order them by phone at 1-800-829-3676. You can also get them from some local libraries, post offices, or tax offices.

Whichever option you choose, make sure to file your tax return by the deadline, which was April 17, 2018, for 2017 taxes. If you need more time, you can request an automatic six-month extension by filing Form 4868 by the deadline. However, this extension only applies to the filing deadline, not the payment deadline. If you owe taxes, you have to pay them by April 17, 2018, or face interest and penalties.

What Deductions and Credits Can You Claim for 2017

Deductions and credits are two ways to reduce your tax liability for 2017. Deductions lower your taxable income, while credits lower your tax bill directly. Here are some of the common deductions and credits you can claim for 2017:

Deductions:
- Standard deduction: This is a fixed amount that you can deduct from your income, regardless of your expenses. For 2017, the standard deduction was $6,350 for single filers, $12,700 for married couples filing jointly, and $9,350 for heads of households.
- Itemized deductions: These are specific expenses that you can deduct from your income, such as mortgage interest, state and local taxes (SALT), medical expenses, charitable contributions, and miscellaneous deductions. However, some of these deductions had limitations or thresholds based on your income or other factors. For example, you could only deduct SALT up to $10,000, and you could only deduct medical expenses that exceeded 10% of your adjusted gross income.
- Personal exemption: This was an amount that you could deduct for yourself and each dependent you claimed on your tax return. For 2017, the personal exemption was $4,050 per person, subject to phase-out for high-income taxpayers.
Credits:
- Child tax credit: This was a credit that you could claim for each qualifying child under the age of 17. For 2017, the child tax credit was $1,000 per child and was partially refundable. The credit was also subject to income phase-out thresholds.
- Earned income tax credit: This was a refundable credit that you could claim if you had low to moderate income from working. The amount of the credit depended on your income, filing status, and number of qualifying children. For 2017, the maximum credit ranged from $510 for no children to $6,318 for three or more children.
- Child and dependent care credit: This was a nonrefundable credit that you could claim if you paid for the care of a qualifying child or dependent while you worked or looked for work. The amount of the credit depended on your income and the amount of care expenses you incurred. For 2017, the maximum credit was $1,050 for one child or dependent and $2,100 for two or more children or dependents.
- Education credits: These were credits that you could claim if you paid for qualified education expenses for yourself or a dependent. There were two types of education credits: the American opportunity tax credit (AOTC) and the lifetime learning credit (LLC). The AOTC was worth up to $2,500 per eligible student and was partially refundable. The LLC was worth up to $2,000 per tax return and was nonrefundable. Both credits were subject to income phase-out thresholds.

These are some of the deductions and credits that you could claim for 2017. However, there may be other deductions and credits that apply to your specific situation. To find out more about the deductions and credits that you are eligible for, please visit [the IRS website] or consult a qualified tax professional.

How to Report Different Types of Income for 2017

To report different types of income for 2017, you have to use different forms and schedules, depending on the source and nature of your income. Here are some of the common types of income and how to report them for 2017:

Wages and salaries: These are the income that you earned from working as an employee. You should receive a Form W-2 from your employer, which shows your wages, tips, and other compensation, as well as the taxes withheld from your pay. You have to report this income on Line 7 of Form 1040 or Form 1040A, or Line 1 of Form 1040EZ.
Interest and dividends: These are the income that you earned from your investments, such as bank accounts, bonds, stocks, mutual funds, etc. You should receive a Form 1099-INT for interest income and a Form 1099-DIV for dividend income from your financial institutions or brokers. You have to report this income on Line 8a and Line 9a of Form 1040 or Form 1040A, or Line 2 of Form 1040EZ. You may also have to file Schedule B if your interest and dividend income was more than $1,500 or if you had foreign accounts or trusts.
Capital gains and losses: These are the income or loss that you realized from selling or exchanging your capital assets, such as stocks, bonds, real estate, etc. You have to report this income or loss on Schedule D and attach it to your Form 1040. You may also have to file Form 8949 if you sold any stocks or securities. The net amount of your capital gains and losses will be reported on Line 13 of Form 1040. You may qualify for preferential tax rates on some of your capital gains, depending on how long you held the assets and your income level.
Business income: This is the income that you earned from running your own business or being self-employed. You have to report this income on Schedule C or Schedule C-EZ and attach it to your Form 1040. You may also have to file Schedule SE to calculate your self-employment tax. The net amount of your business income will be reported on Line 12 of Form 1040. You may be able to deduct some of your business expenses from your income, such as car expenses, home office expenses, supplies, etc.
Rental income: This is the income that you earned from renting out your property or equipment. You have to report this income on Schedule E and attach it to your Form 1040. The net amount of your rental income will be reported on Line 17 of Form 1040. You may be able to deduct some of your rental expenses from your income, such as mortgage interest, property taxes, repairs, depreciation, etc.
Retirement income: This is the income that you received from your retirement plans or accounts, such as pensions, annuities, IRAs, 401(k)s, etc. You should receive a Form 1099-R for each distribution that you received from these sources. You have to report this income on Line 16a and Line 16b of Form 1040 or Form 1040A, or Line 4a and Line 4b of Form 1040EZ. Some of your retirement income may be taxable or partially taxable, depending on the type of plan or account and the amount of contributions that you made.
Social security benefits: These are the benefits that you received from the Social Security Administration (SSA), such as retirement benefits, disability benefits, survivor benefits, etc. You should receive a Form SSA-1099 for each type of benefit that you received. You have to report this income on Line 20a and Line 20b of Form 1040 or Form 1040A. Some of your social security benefits may be taxable or partially taxable, depending on your total income and filing status.

These are some of the types of income that you may have received in 2017 and how to report them on your tax return. However, there may be other types of income that apply to your specific situation. To find out more about how to report different types of income for 2017, please visit [the IRS website] or consult a qualified tax professional.

Frequently Asked Questions (F&Qs)

What is the income tax rate?

In the United States, there are seven federal income tax brackets for the 2022 and 2023 tax years. The tax rates range from 10% to 37% and are determined by your income and tax filing status. The U.S. has a progressive tax system, where portions of a person’s taxable income can fall into different brackets to be taxed at different rates. The tax brackets are adjusted each year to account for inflation, which can help prevent a taxpayer from paying higher taxes as the cost of living increases.

How do I pay tax UK?

In the UK, there are several ways to pay your income tax. Most people pay income tax through the Pay As You Earn (PAYE) system, which is used by employers and pension providers to deduct income tax and National Insurance contributions before paying wages or pensions. If you are self-employed or have a high income, you may need to pay income tax through Self Assessment, which involves filling out a tax return every year.

Is income from World Bank taxable in India?

Yes, income from the World Bank is taxable in India if it is received by a resident Indian. However, if the income is received by a non-resident Indian (NRI), it may be exempted under section 10 of the Income Tax Act.

Paying Taxes 2017